Tencent reported revenue of CN¥204.785 billion (approx. ₩42.9967 trillion) and an operating profit of CN¥67.276 billion (approx. ₩14.1253 trillion) for the second quarter of this year, marking increases of 11% and 12% year-on-year, respectively. Gaming revenue for the same period rose 11% to CN¥65.9 billion (approx. ₩13.8364 trillion). The domestic Chinese market drove this growth, rising 17% to CN¥47.3 billion (approx. ₩9.9311 trillion), while international market revenue fell 0.8% to CN¥18.6 billion (approx. ₩3.9053 trillion).

Tencent explained that the international decline was due to currency fluctuations, noting a 4% increase on a constant-currency basis. As high-margin, self-developed games contributed more to the total, the gross profit margin for the Value-Added Services (VAS) segment, which includes gaming, rose 4 percentage points from 60% to 64% compared to the same period last year.

While Tencent reported a 0.7% quarter-on-quarter decline in international gaming revenue, it specifically cited 'VALORANT' (PC) and 'PUBG Mobile' as titles that saw revenue growth. The company explained that these two pillars offset revenue declines in some Supercell titles. By explicitly naming the IP of Korean game companies as a factor in its revenue growth in a quarterly earnings disclosure, Tencent has provided an indirect indicator that the royalty base for KRAFTON remains robust.

KRAFTON previously announced its preliminary results for the second quarter of 2026 on the 29th of last month, reporting revenue of ₩1.2902 trillion and an operating profit of ₩410.9 billion, noting that the 'PUBG: Battlegrounds' IP franchise saw a 25% year-on-year increase in first-half revenue. KRAFTON's mobile segment revenue for the first half of the year totaled ₩1.1537 trillion.

Tencent categorized its gaming development and collaboration landscape into three tiers. Its 'In-house Studios,' where Tencent holds management control, include internal Chinese organizations such as TiMi, LIGHTSPEED, MoreFun, and Aurora, as well as Riot Games, Supercell, Miniclip, and Techland.

The 'Emerging Studios' category includes FromSoftware and Game Science, alongside KRAFTON and SHIFT UP. KRAFTON expanded its 'PUBG' IP to mobile in collaboration with Tencent's LIGHTSPEED STUDIOS; this IP was localized in China under the separate title 'Game for Peace.' SHIFT UP entrusts the domestic and international publishing of 'Goddess of Victory: Nikke' to Tencent subsidiary Proxima Beta (Level Infinite), meaning the vast majority of the company's revenue is generated through Tencent's distribution network. Both companies share the commonality that Tencent was involved from the early investment stages, growing alongside them.

'Category Leading Partners' include Capcom, EA, Ubisoft, SQUARE ENIX, and Take-Two Interactive, alongside Nexon. Nexon's relationship is closer to entrusting established, large-scale IP to Tencent. Tencent handles the Chinese operations for 'Dungeon&Fighter' and 'Dungeon&Fighter Mobile.' In April, a structural reorganization took place in which Tencent took over full authority for the Chinese service of 'Dungeon&Fighter Mobile,' which had previously been managed jointly with Nexon subsidiary NeoPle. Last November, the two companies also jointly conducted the Chinese open beta for Nexon's shooter game 'The Finals.

Tencent's growth trajectory is leaning heavily toward AI. Capital expenditure in the second quarter surged to CN¥52.784 billion (approx. ₩11.0825 trillion), 2.8 times that of the same period last year, and R&D expenses increased by 34.7% to CN¥27.278 billion. Due to heavy upfront payments for computing resources, quarterly free cash flow turned into a deficit of CN¥13.8 billion. Net cash decreased from CN¥146.86 billion at the end of March to CN¥58.191 billion at the end of June, reflecting a strategy of pouring cash earned from games and advertising into AI infrastructure.

CEO Pony Ma stated, "We remain steadfast in our core principle of 'Value for Users, Tech for Good,' and we are committed to creating a constructive impact through technology. We will continue to lead innovation using AI, create long-term value, and build a more sustainable future for everyone."