Key Highlights
- Q4 2025 total revenue increased 15.9% YoY to RMB8.64 billion, surpassing analyst projections of RMB8.44 billion
- Revenue from online music services jumped 21.7% to RMB7.10 billion, driven by 40.8% growth in non-subscription income
- Adjusted earnings per ADS of RMB1.41 fell short of consensus expectations of RMB1.54
- Paying users for online music increased 5.3% YoY to 127.4 million; SVIP membership surpassed 20 million
- Full-year 2025 adjusted net profit climbed 25% to RMB9.59 billion; company announced annual dividend of approximately $368 million
Tencent Music Entertainment (TME) delivered a mixed bag of results for Q4 2025 on Tuesday — sales figures exceeded analyst projections, though profitability metrics disappointed.
The entertainment platform generated total revenue of RMB8.64 billion ($1.24 billion) during the quarter, representing a 15.9% year-over-year increase. This figure beat the Street consensus estimate of RMB8.44 billion. Conversely, adjusted earnings per ADS registered at RMB1.41 ($0.20), missing analyst expectations of RMB1.54.
Tencent Music Entertainment Group, TME
The revenue performance was predominantly fueled by the online music division. This segment experienced 21.7% year-over-year expansion to RMB7.10 billion.
Music subscription revenue contributed RMB4.56 billion to this total, marking a 13.2% YoY increase. TME attributed this growth to enhanced membership benefits — such as exclusive early access to concerts and artist merchandise.
Non-subscription music income emerged as the star performer, skyrocketing 40.8% YoY to RMB2.54 billion. Live performance events and advertising solutions were the primary growth catalysts.
User metrics showed positive momentum. The platform’s online music paying user base expanded 5.3% YoY to 127.4 million, while monthly average revenue per paying user increased 7.2% to RMB11.9.
The company’s premium SVIP subscriber count exceeded 20 million by year-end 2025. This represents a membership tier that TME has been aggressively promoting as its flagship offering.
Gross margin improved to 44.7%, compared to 43.6% during the corresponding period last year.
Annual 2025 Performance
For the complete year, TME generated revenue of RMB32.90 billion, representing 15.8% YoY growth. Adjusted net profit totaled RMB9.59 billion, marking a 25% increase from the previous year.
Net profit attributable to equity holders during Q4 reached RMB2.20 billion, up 12.6% YoY. Non-IFRS net profit stood at RMB2.49 billion, reflecting 9% growth.
The streaming company concluded 2025 with RMB38.04 billion in cash and investments — representing a robust liquidity cushion.
Executive Chairman Cussion Pang noted that the company “executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion” throughout 2025.
Shareholder Returns and Wall Street Outlook
TME’s board approved an annual cash dividend totaling approximately $368 million, equivalent to $0.24 per ADS.
The latest Wall Street rating on the shares is a Buy recommendation, featuring a HK$71.00 price target. TME is publicly traded on the NYSE under the ticker TME and on the Hong Kong Stock Exchange under the symbol 1698.
At the time of the earnings release, TME’s Hong Kong-listed shares were trading 0.62% higher.
