The market eagerly anticipates the launch of Valorant Mobile, a popular title from Riot Games Inc. Tencent Holdings Ltd. reported a 15% revenue increase, exceeding expectations with 184.5 billion yuan ($25.7 billion) for Q2. This growth, bolstered by AI advancements in advertising, saw shares in major shareholder Prosus NV rise by 3.9%. Tencent is intensifying its AI research amid fierce competition from Alibaba and ByteDance, focusing on integrating AI into its services. While its earnings growth may decelerate to 9% in Q2, down from 25% in Q1, Tencent’s game division remains crucial for revenue. With WeChat’s powerful ecosystem and 1 billion users, Tencent aims to monetize through ads and mini-games, positioning itself in the generative AI landscape. Notably, it seeks to avoid intense e-commerce battles that rivals engage in. As Tencent prepares for upcoming game titles announced at Gamescom, it remains optimistic about maintaining user engagement and revenue growth.
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