Key Highlights
- Q4 2025 total revenue climbed 15.9% year-over-year to RMB8.64 billion, surpassing analyst projections of RMB8.44 billion
- Revenue from online music services jumped 21.7% to RMB7.10 billion, with a 40.8% increase in non-subscription income
- Adjusted earnings per share of RMB1.41 fell short of the RMB1.54 consensus forecast
- Paying users for online music increased 5.3% YoY to 127.4 million; SVIP membership exceeded 20 million
- Annual adjusted net profit for 2025 rose 25% to RMB9.59 billion; company announced approximately $368 million in annual dividends
Tencent Music Entertainment (TME) delivered a somewhat contradictory Q4 2025 earnings report on Tuesday — while revenue exceeded Wall Street projections, the company’s earnings figures disappointed investors.
Quarterly revenue reached RMB8.64 billion ($1.24 billion), marking a 15.9% increase from the previous year. This performance surpassed the RMB8.44 billion analyst consensus. Yet adjusted earnings per ADS registered at RMB1.41 ($0.20), falling below the anticipated RMB1.54.
Tencent Music Entertainment Group, TME
The company’s revenue performance was predominantly powered by its online music division. This segment experienced 21.7% year-over-year growth, reaching RMB7.10 billion.
Music subscription services generated RMB4.56 billion of that total, representing a 13.2% YoY increase. TME attributed this growth to enhanced membership benefits — including priority access to live concerts and exclusive artist merchandise.
The real standout was non-subscription music revenue, which skyrocketed 40.8% YoY to RMB2.54 billion. Live performances and advertising services were the primary catalysts for this impressive growth.
User metrics showed positive momentum. The number of paying users for online music climbed 5.3% YoY to 127.4 million, while monthly average revenue per paying user increased 7.2% to RMB11.9.
The platform’s SVIP subscriber count surpassed 20 million by year-end 2025. This premium tier has been a strategic focus for TME’s growth initiatives.
Gross margin improved to 44.7%, up from 43.6% during the comparable period in the previous year.
Annual Performance for 2025
Looking at the complete fiscal year, TME generated revenue of RMB32.90 billion, representing a 15.8% YoY increase. Adjusted net profit hit RMB9.59 billion, marking a substantial 25% gain compared to the previous year.
Q4 net profit attributable to equity holders totaled RMB2.20 billion, up 12.6% YoY. Non-IFRS net profit stood at RMB2.49 billion, reflecting a 9% increase.
The company closed 2025 with RMB38.04 billion in cash and investments — demonstrating robust financial health.
Executive Chairman Cussion Pang noted the company “executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion” throughout 2025.
Shareholder Returns and Market Outlook
TME’s board approved an annual cash dividend of roughly $368 million, equivalent to $0.24 per ADS.
The latest analyst assessment assigns the stock a Buy rating, with a price target of HK$71.00. TME is publicly traded on the NYSE under the ticker TME and on the Hong Kong Stock Exchange as 1698.
At the time of the earnings release, TME’s Hong Kong-listed shares were trading 0.62% higher.
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