Tencent Q2 revenue climbs 11% on AI-driven ad gains, but profit falls short

BEIJING, Aug 12 : Tencent Holdings reported an 11 per cent rise in second-quarter revenue on Wednesday, driven by strong advertising sales and steady gaming income, as the Chinese technology giant ramps up AI spending.For the three months to the end of June, the Shenzhen-based gaming and internet company reported revenue of 204.8 billion yuan ($30.36 billion), in line with analyst estimates of 202.2 billion yuan, according to LSEG data.Net profit rose only 0.7 per cent from a year earlier to 56 billion yuan, falling short of analyst expectations of 61.8 billion yuan.Investors have been focused on whether Tencent's heavy AI spending is starting to generate returns, or merely weighing on margins. Capital expenditure totalled about 79 billion yuan last year, up from 77 billion yuan in 2024, a