In "The Big Banks," Citigroup expects Tencent's third-quarter revenue to increase by 14% year-on-year, with adjusted EBIT rising by 21%

Citi published a research report indicating that Tencent (00700.HK) is expected to have steady performance in the third quarter, with total revenue growing 14% year-on-year to RMB 190 billion, and adjusted EBIT rising 21% to RMB 74.1 billion. Among them, the online gaming business is expected to grow 18% year-on-year; online advertising is driven by technological upgrades and transformation, with revenue expected to rise 20% during the period; and commercial services revenue is expected to increase by over 20% year-on-year.

The bank expects that as online gaming, advertising, and cloud businesses show resilient growth, the growth momentum will continue into the fourth quarter of this year. Additionally, Tencent is the biggest beneficiary of artificial intelligence applications. The bank raised its adjusted net profit forecast for the company by 0.8% for both this year and next year, reiterating the "highly confident of outperforming the market" rating, with a target price of 740 yuan