Ubisoft delivered improved H1 results, with net bookings up 20% YoY and operating income returning to positive territory. Tencent's €1.16 billion investment eliminated Ubisoft's net debt and strengthened its balance sheet. Partnerships and Assassin's Creed drove performance, highlighting continued dependence on catalog strength rather than new releases.
Tencent (TCEHY) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Tencent Holdings Limited (OTCPK:TCEHY) Q3 2025 Earnings Call November 13, 2025 7:00 AM EST Company Participants Wendy Huang - Investor Relations Officer Huateng Ma - Co-Founder, Chairman & CEO Chi Ping Lau - President James Mitchell - Chief Strategy Officer & Senior EVP Shek Hon Lo - CFO & Senior VP Conference Call Participants Thomas Chong - Jefferies LLC, Research Division Alicis a Yap - Citigroup Inc., Research Division Gary Yu - Morgan Stanley, Research Division Alex Yao - JPMorgan Chase & Co, Research Division William Packer - BNP Paribas, Research Division Charlene Liu - HSBC Global Investment Research Kenneth Fong - UBS Investment Bank, Research Division Robin Zhu - Sanford C. Bernstein & Co., LLC.
The Tencent Holdings shareholder anticipates a boost to first-half earnings from increased profitability at the Chinese technology giant and at its own e-commerce business.
Tencent Holdings Limited remains a Buy, offering strong double-digit growth and consistent performance, despite no longer being a major bargain. Tencent reported robust Q3/25 results with 15.4% revenue growth, improved margins, and continued leadership in gaming, video, and music subscriptions. AI-driven efficiency gains, such as reduced coding time and improved R&D automation, support margin expansion and long-term competitiveness for Tencent.
Tencent Music's stock price fell -8% following the results announcement, despite the fact that its Q3 topline and earnings exceeded expectations. TME's diversification into non-subscription businesses will boost revenue stability, even though it came at the expense of a gross margin decline in the recent quarter. Competitive concerns from ByteDance's Soda Music are overblown, as TME has a differentiated user base.
The videogame and social-media company extended its recent streak of earnings beats amid continued AI integration efforts and strong momentum at its gaming business.
Tencent on Thursday posted 15% year-on-year revenue growth, with AI boosting the Chinese tech giant's performance in advertising targeting and gaming.
Tencent reported a third-quarter revenue growth of 15% on Thursday, as China's largest social media and gaming company benefited from strong gaming demand and expanding AI-driven services.
Tencent's stock price has surged 50.4% this year, signaling a potential renewed investor confidence. A new round of tariffs may disrupt the momentum. Yet, the company looks like an enticing investment as of now with a strong upside potential. The market was punishing the business, along with other Chinese firms, for too long. Considering the forward-looking management, a long track record of growth, and a constant pursuit of innovation, Tencent may appear as a compelling option from a value investing perspective.
Tencent (TCHEY) is rated a Strong Buy, driven by renewed growth across gaming, advertising, and fintech, powered by AI integration. TCHEY is undervalued at 20x earnings, with a 12-month price target of $105 per ADR, offering a 22% upside potential. AI-driven advertising, cloud expansion, and rising domestic consumption are key growth catalysts, while risks include regulatory shifts and domestic competition.
Prosus N.V. is rated Buy, driven by strong Tencent momentum, a persistent NAV discount, and a growing e-commerce ecosystem. Prosus benefits from Tencent's compounding growth and uses share buybacks at a 30%+ NAV discount to create shareholder value. The ex-Tencent portfolio is now profitable, growing revenues at 18% CAGR.