Tencent Holdings reported second-quarter revenue of 204.8 billion yuan ($30.4 billion). Revenue increased 11% year-over-year, surpassing analyst estimates. Domestic gaming revenue climbed 17% during the period. Marketing services revenue grew 22%.
Net profit rose 0.7% to 56 billion yuan, missing market expectations. Capital expenditure surged 176% to a record 52.8 billion yuan. Tencent invested these funds into computing infrastructure for artificial intelligence. The spending increase pushed free cash flow into negative territory for the quarter.