#China #Shenzhen #Tencent Music #online music #TME

Tencent Music Entertainment Group Reports Impressive Q2 2025 Financial Results

Shenzhen, China — August 12, 2025
Tencent Music Entertainment Group (TME) has announced its unaudited financial results for the second quarter of 2025, revealing a stellar performance amidst challenging market conditions. The company reported total revenues of RMB 8.44 billion (approximately USD 1.18 billion), representing a remarkable 17.9% increase year-over-year. This growth is primarily attributed to a significant rise in revenues from online music services, which was partially offset by a decline in social entertainment revenue.

Financial Highlights

In detail, revenues from online music services soared to RMB 6.85 billion (USD 957 million), marking a 26.4% increase from the prior year. Music subscription services contributed RMB 4.38 billion (USD 611 million) of this total, reflecting a year-over-year growth of 17.1%. Notably, the average revenue per paying user (ARPPU) increased to RMB 11.7, an increase from RMB 10.7 in the same period in 2024.

The net profit attributable to equity holders stood at RMB 2.41 billion (USD 336 million), a significant 43.2% year-over-year growth. Diluted earnings per American Depositary Share (ADS) rose to RMB 1.55 (USD 0.22), compared to RMB 1.07 a year earlier. As of June 30, 2025, TME also reported total cash and equivalents amounting to RMB 34.92 billion (USD 4.87 billion).

Executive Insights

Mr. Cussion Pang, Executive Chairman of TME, emphasized the remarkable growth achieved in the second quarter, highlighting the ongoing success of the company's music subscription business alongside robust growth in various music-related services, including advertising and artist merchandise. Pang stated that TME is committed to establishing a comprehensive music service platform that fosters connections between creators and fans.

Echoing these sentiments, CEO Mr. Ross Liang elaborated on TME's innovative product offerings that enhance user experiences, contributing to solid growth in online music. He proudly noted that the number of VIP subscribers reached 15 million, a new benchmark for the company. Liang expressed confidence in the potential of the music entertainment sector and reiterated TME's dedication to investing in initiatives that generate sustainable value for creators and consumers alike.

Operational Highlights

Despite a slight decrease in monthly active users (MAUs) in online music services to 553 million, the number of paying users climbed to 124.4 million, a 6.3% increase year-over-year. The operational metrics indicate deeper user engagement driven by TME’s innovative content and services.

Expansion of Content Offerings

TME has successfully forged partnerships with international and local labels and artists, resulting in a wider array of musical offerings. This includes collaborations with K-pop label The Black Label and continuing cooperation with the acclaimed Chinese artist Wang Feng. Initiatives like the cross-border collaboration EP with SM Entertainment are testament to TME’s focus on creating compelling content that resonates with diverse audiences.

TME’s strategy also includes large-scale concert hosting, showcasing its ability to attract significant crowds and enhance artist visibility. Notably, the recent grand concert for G-DRAGON in Macau garnered significant attention, with all official merchandise selling out rapidly.

Advancements in Membership Offerings

The introduction of premium sound quality features, such as VIPER HiFi and the all-new AI Chorus function, exemplifies TME's commitment to enhancing the user experience further. The diversified membership options, including artist-centric privileges and the new ad-based membership offerings, have positively impacted engagement and increased revenues, reflecting a successful monetization strategy.

Conclusion

Tencent Music Entertainment Group’s Q2 results underscore a thriving trajectory, characterized by both revenue growth and user expansion. With a focus on innovation, partnerships, and a deep understanding of market demands, TME is well-positioned to continue leading the online music landscape in China and beyond. As they explore new horizons in music entertainment, both fans and creators await what lies ahead.

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