The TNCENT Profit rises by 90 % because it symbolizes the increased revenues of artificial intelligence and affects spending – NBC10 Philadelphia

• On Wednesday, TENCent published a victory in the fourth quarter in the top and bottom led by an increase in game and advertising revenues.
• TENCent has seen a batch of gaming revenues at the local and international levels of games such as Honor of Kings and Pubg Mobile.
• Tencent described how artificial intelligence reinforced revenues in areas such as advertising as the company intensifies spending on chips and servers.

Tinetnet On Wednesday, in the fourth quarter, a rhythm at the top and bottom was released, driven by an increase in game and advertising revenues.

The company also achieved an increase in capital expenditures, which multiplied more than three times in 2024, pressing forward while enhancing its focus on artificial intelligence amid intense competition from Chinese competitors such as Ali Baba. TENCent has described an increase in AI’s revenues in areas such as cloud computing and advertising.

Here is how Tenning did in the fourth quarter of 2024 for Refinitiv estimates:

• profit: 172.4 billion yuan China ($ 23.9 billion), compared to 168.9 billion yuan expected.
• The profit attributed to the shareholders of the company: 51.3 billion yuan, compared to 46.03 billion yuan expected.

Revenue increased by 11 % on an annual basis, while profits increased by 90 % against the same period in 2023.

Tencent is one of the largest gaming companies in the world. China’s local games revenue increased by 23 % year on an annual basis to 33.2 billion yuan in the fourth quarter. Tinken said that this height was due to a decrease in a base in the period in the previous year, in addition to growth in some of its successful games, including the honor of kings and the elite of the peacekeeper.

The average annual growth rate of the rapid local games in the quarter of December, Compared to the previous three months.

International games revenue jumped by 15 % on an annual basis to 16 billion. Over the past few years, TENCENT has climbed its efforts abroad with games like Pubg Mobile, as the local game market slowed in the opposite winds of the macroeconomic and organizational economy.

Tencent marketing services or their advertising business-by 17 % on an annual basis to 35 billion yuan in the fourth quarter. Tinting WeChat, the largest correspondent application in China with more than 1.38 billion active users per month. The company is working to liquefy these users through different advertising products such as video and search.

Promote artificial intelligence

While Tencet is one of the largest gaming companies in the world, the technology giant has also put a great focus to become a major artificial intelligence player in China over the past two years, where various artificial intelligence models have placed.

On Tuesday, the company launched the Hunyuan3D-2.0, which could transform the text or images into 3D graphics. In February, Tencent revealed Turbo S, an Amnesty International model designed to respond to the user’s information as quickly as possible.

Tennsant said artificial intelligence leads improvements across the various products within the company.

Tincent said that the growth of marketing services was driven by the “strong” demand for advertisers in addition to “the continuous enhancement of the infrastructure of the advertisements working in Amnesty International.” The company said that TENCENT AI allows them to serve with “more relevant advertising recommendations.”

Meanwhile, Cloud AI’s revenues have multiplied almost annually in 2024, although they refused to give a specific sales number.

The TENCent cloud computing company is located in the FinTec and Service service section, which has recorded 3 % growth year on an annual basis in the fourth quarter to 56.1 billion yuan.

However, Tencent said that increasing the use of graphics processing units for internal uses may “limited” the amount of chips available to external customers, and thus has retracted the growth of cloud services revenues as well.

Graphics processing units are the main conductors required to train and use artificial intelligence applications.

Tennsant said that starting from the fourth quarter, it has climbed “graphics processing units” and expected “accelerating revenues” for cloud services as a result.

Slow up stairs

The AI’s focus from TENCENT came with increased spending, as the capital expenses of the company reached 2024 a total of 76.8 billion yuan – more than three times from 23.89 billion in 2023. Tinsight said that some of this spending went towards servers and graphics processing units.

Tinetnet said it reorganized the difference and that the increasing investments would enhance growth.

“From a few months, we have reorganized our teams of artificial intelligence to focus both fast products and deep typical research, and increased our capital expenses related to the prosecution, and increased our efforts in researching and marketing our original products,” Tennsant said in our profit statement.

“We believe that these successive investments will generate continuous returns through high -end productivity in our advertising and longevity of our games, as well as a long -term value of the accelerated consumer use of our artificial intelligence applications and the adoption of our institutions for our artificial intelligence services.”

Investors are still watching how Tencent is planning to achieve its investments in artificial intelligence, especially on its products facing the consumer, such as WeChat.

On this front, it works Tencent with its artificial intelligence models, as well as with those competitors. Chatbot is from the artificial intelligence named Yuanbao, which depends on its Hunyuan’s founding model as well as R1 Deepseek. Tencent also sought to integrate Deepseek technology across some other products, including WeChat’s search features in China.

“It is ready for the growth of collapse in consumer reactions” with products like Yuanbao and WeChat.

Tennsant said the revenue from the search in Wixat, the name WeChat for users in China, is more than twice on an annual basis in the quarter of December.

Senzhen, which is the Chentzhen, is a symbol of the current position of the competition between the technology giants in China, which was raised by the startup company Deepseek and the artificial intelligence model that was released earlier this year.

Thick and fast artificial intelligence updates have been released from Alibaba and Baidu.

Last week, Alibaba launched a new version of the AI ​​Assistant application It is supported by its QWEN AI thinking model. Bido on Sunday He released two new models Including the new thinking model.