Earnings release
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Tencent Music Tencent Music Entertainment Group Announces Third Quarter 2025 Unaudited Financial Results SHENZHEN, China , Nov. 12, 2025 / PRNewswire / -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China , today announced its unaudited financial results for the third quarter ended September 30, 2025 . Third Quarter 202 5 Financial Highlights Total revenues were RMB8.46 billion ( US$1.19 billion ), representing a 20.6% year-over-year increase, primarily due to strong year-over-year growth in revenues from online music services. Revenues from online music services were RMB6.97 billion ( US$979 million ), representing 27.2% year-over-year growth. Revenues from music subscriptions were RMB4.50 billion ( US$632 million ), representing 17.2% year-over-year growth. Monthly ARPPU grew to RMB11.9 from RMB10.8 in the same period of 2024. Net profit attributable to equity holders of the Company was RMB2.15 billion ( US$302 million ), representing 36.0% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company [1] was RMB2.41 billion ( US$338 million ), representing 32.6% year-over-year growth. Diluted earnings per ADS was RMB1.38 (US$0.19) , up from RMB1.01 in the same period of 2024. Non-IFRS diluted earnings per ADS was RMB1.54 (US$0.22) , up from RMB1.16 in the same period of 2024. Total cash, cash equivalents, term deposits and short-term investments as of September 30, 2025 were RMB36.08 billion ( US$5.07 billion ). Mr. Cussion Pang, Executive Chairman of TME, commented, "In the third quarter, we delivered another set of solid results, underpinned by the well-rounded performance of our online music business. Our ongoing innovations in content enrichment, services expansion to include more live experiences continued to fuel consistent subscription revenue growth while boosting momentum in non-subscription services, especially in concerts and artist merchandise. Backed by our strong financial position and operational excellence, we are poised to further broaden our music services and create greater value for the entire music industry." Mr. Ross Liang , CEO of TME, continued, "We are pleased that our ecosystem continues to thrive. A creative approach to personalized offerings and experiences, supported by deepening user insights, continued to strengthen user loyalty, leading to further increases in both SVIP penetration and ARPPU. Moving forward, we will further sharpen our core strengths, enhance platform efficiency, and capture emerging opportunities as we continue to drive music creation and consumption." Third Quarter 202 5 Operational Highlights Key Operating Metrics 3 Q2 5 3 Q2 4 YoY % MAUs – online music (million) 551 576 (4.3 %) Paying users – online music (million) 125.7 119.0 5.6 % Monthly ARPPU – online music (RMB) 11.9 10.8 10.2 % Broadened music offerings in different genres and languages to further enrich our content ecosystem. Enhanced partnerships with renowned labels and artists to further expand our comprehensive music catalog. For example, 1) Renewed contracts with the Korean label DREAMUS, as well as popular artists including G.E.M., Jason Zhang , and Lay Zhang [2] , to strengthen our collection of top hits. 2) Formed strategic partnerships with renowned Japanese ACG label KING RECORDS and Korean label CEREAL, expanding our collection of anime soundtracks and Korean OSTs. Teamed up with leading game developers to broaden game-related music selection. 1) Partnered with Tencent Games to co-produce the Honor of Kings 10th-anniversary theme song, Atlas of Tomorrow , performed by JJ Lin. The success of the song garnered over 600 million social media mentions within two weeks of its release, standing out as one of the year's most impactful game soundtracks. 2) Entered into an inaugural collaboration with Blizzard Entertainment, introducing 50 original soundtracks from iconic game titles including World of Warcraft and Hearthstone . Deepened offerings to strengthen artist-fan connections. 1) The joint release of Lay Zhang's new digital album ROCK THE HEAVENLY PALACE and its collectible cards drove strong participation and purchases, earning it a spot among the 2025's top selling albums. 2) Produced the first physical album, My Odyssey, for Bai Lu , which generated high acclaim from fans and achieved strong sales. Proven ability to stage live concerts enabled us to scale and extend services to international markets. Organized and staged large-scale concert tours, home and abroad. 1) After successfully hosting G-DRAGON's concerts G-DRAGON 2025 WORLD TOUR [ Übermensch ] in the second quarter, we hosted 14 additional sold-out shows for him in the third quarter. Such shows expanded across six cities - including Sydney , Melbourne , and Kuala Lumpur , drawing over 150,000 attendees, significantly elevating our global presence. 2) Organized and supported major concert tours for renowned artists such as Fiona Sit, TIA RAY, Angela Zhang and GAI, amplifying their reach. Notably, we helped GAI upscale his concert from an arena-level to a stadium-level event. Expanded our proprietary concert IP portfolio with the launch of the TMElive International Music Awards (TIMA), celebrating international artists' achievements and enhancing our industry influence. The inaugural TIMA showcased 22 acclaimed artists and groups from China and a number of Asian countries — including acts by BILLKIN, PP KRIT, aespa and SMTR25, garnering over 20,000 attendees over two days. Meanwhile, our annual flagship TMEA 2025 attracted 35 artists and groups, drawing over 10,000 attendees and achieving remarkable online engagement. Innovation and differentiated membership offerings improved user service and user loyalty. Remained at the forefront of designing delightful music journeys for users. 1) Integration of Apple's Liquid Glass mode on iOS26, Liquid Glass themes and player to Android, as well as full Harmony OS adaption significantly improved visual and interactive experiences. 2) Our AI-generated lyrics card function,
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and AI-powered seamless multi-mode song transition feature Automix, both of which enhanced immersive listening experiences. Multi-pronged membership offerings contributed to improved engagement and conversion. Across our freemium mode, ads membership, and standard membership, differentiated services were tailored to meet distinct user needs. Users can conveniently unlock additional tools and perks by opting for any plan that best suits their preferences. For example, our newly introduced ads membership observed a growing propensity among freemium users, with their daily time spent on the platform trending upward. Both SVIP penetration and ARPPU further improved thanks to superior streaming experiences and enriching artist-related benefits. Accelerated the rollout and application of premium sound features. QQ Music's newly introduced three-dimensional immersive DTS Booming External Speaker and Kugou Music's Viper Ultra Sound 2.0 were widely adopted, highly effective in converting and sustaining SVIP. Leveraged user insights and rich content to widen innovative offerings. 1) Privileged access to digital albums and collectible NFC cards such as Eason Chan's FEAR and DREAMS as well as i-dle's self-titled Japanese EP was some of the key draws driving increased SVIP adoption. 2) Expanded Starlight cards with more popular artists line-ups to domestic and international audience was another success. Through bubble , we continued to enrich fan-artist connections. 1) Expanded bubble artist roster by onboarding 15 musicians from domestic labels including Hu Xia , NexT1DE, and R.E.D to enrich content diversity which in turn attracted a broader user base. Ongoing product feature iterations, such as AI-powered in-app localization, have also boosted user retention. 2) Introduced more fun and engaging badges to celebrate artists' key moments, fostering a deeper sense of connection and community. Third Quarter 202 5 Financial Review Total revenues increased by RMB1.45 billion , or 20.6%, to RMB8.46 billion ( US$1 .19 billion) from RMB7.02 billion in the same period of 2024. Revenues from online music services increased by 27.2% to RMB6.97 billion ( US$979 million ), compared with RMB5.48 billion in the same period of 2024. The increase was driven by solid growth in music subscription revenues, supplemented by growth in revenues from offline performances, advertising services and artist-related merchandise. Revenues from music subscriptions were RMB4.50 billion ( US$632 million ), representing 17.2% year-over-year growth, compared with RMB3.84 billion in the same period of 2024. The rapid growth was mainly driven by the improved monthly ARPPU, which increased to RMB11.9 in the third quarter of 2025 from RMB10.8 in the same period of 2024. This growth of monthly ARPPU was primarily due to expansion of the SVIP membership program, as we continued to expand SVIP membership privileges for our users. Revenues from offline performances achieved robust year-over-year growth. We successfully hosted G-DRAGON's concerts across six cities, achieving strong ticket sales. The year-over-year increase in revenues from advertising was primarily due to our more diversified product portfolio and innovative ad formats, such as ad-supported mode. Additionally, revenues from artist-related merchandise also generate strong year-over-year growth. Revenues from social entertainment services and others decreased by 2.7% to RMB1.49 billion ( US$210 million ) from RMB1.54 billion in the same period of 2024. Cost of revenues increased by 18.8% year-over-year to RMB4 .78 billion ( US$672 million ), mainly due to increased costs related to offline performances, IP related costs, such as costs for artist-related merchandise, and advertising agency fees. Meanwhile, revenue sharing fees decreased, resulted from declines in both revenue sharing ratio and revenues from social entertainment services. Gross margin increased to 43.5% from 42.6% in the same period of 2024, primarily due to increased revenues from music subscriptions and advertising services, alongside a lower revenue sharing ratio for social entertainment services, and partly offset by increased revenues from offline performances and artist- related merchandise. Total operating expenses increased by 7.6% year-over-year to RMB1 .31 billion ( US$184 million ). Operating expenses as a percentage of total revenues decreased to 15.5% from 17.4% in the same period of 2024. Selling and marketing expenses were RMB260 million ( US$37 million ), representing an 18.2% year-over-year increase. The increase was primarily due to higher content promotion expenses and channel spending . General and administrative expenses were RMB1.05 billion ( US$148 million ), representing a 5.3% year-over-year increase. The increase was primarily due to growth in employee-related expenses. Total operating profit was RMB2.71 billion ( US$381 million ) in the third quarter of 2025, representing a 26.4% year-over-year increase. Income tax expenses for the third quarter of 2025 were RMB477 million ( US$67 million ), compared with RMB367 million in the same period of 2024. We accrued withholding income tax of RMB118 million ( US$17 million ) in the third quarter of 2025. For the third quarter of 2025, net profit was RMB2.21 billion (US$311 million) and net profit attributable to equity holders of the Company was RMB2.15 billion ( US$302 million ). Non-IFRS net profit was RMB2.48 billion (US$348 million) and non-IFRS net profit attributable to equity holders of the Company was RMB2.41 billion (US$338 million). Please refer to the section in this press release titled "Non-IFRS Financial Measure" for details. Basic and diluted earnings per American Depositary Shares ("ADS") for the third quarter of 2025 were RMB1.40 (US$0.20) and RMB1 .38 (US$0.19), respectively; non-IFRS basic and diluted earnings per ADS were RMB1 .56 (US$0.22) and RMB1 .54 (US$0.22), respectively. For the third quarter of 2025, the Company had weighted averages of 1.54 billion basic and 1.56 billion diluted ADSs outstanding, respectively. Each ADS represents two of the Company's Class A ordinary shares. As of September 30, 2025, the combined balance of the Company's cash, cash equivalents, term deposits and short-term investments amounted to RMB36.08 billion ( US$5 .07 billion), compared with RMB34 .92 billion as of June 30, 2025. Environmental, Social, and Governance ("ESG") In its seventh consecutive year, we added new elements to TME's Music Garden Space program to amplify its reach and impact. This time, we extended invitations to WeSing users to redeem their ads credits on our platform to support music creation. The campaign attracted 380,000 participants, mobilizing broader public support to make music more accessible. Exchange Rate
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This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.1190 to US$1.00 , the noon buying rate in effect on September 30, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Non-IFRS Financial Measure The Company uses non-IFRS net profit for the period, which is a non-IFRS financial measure, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS net profit helps identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that the Company includes in its profit for the period. TME believes that non-IFRS net profit for the period provides useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. Non-IFRS net profit for the period should not be considered in isolation or construed as an alternative to operating profit, net profit for the period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS net profit for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS net profit for the period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. TME encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Non-IFRS net profit for the period represents profit for the period excluding amortization of intangible and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments and related income tax effects. Please see the "Unaudited Non-IFRS Financial Measure" included in this press release for a full reconciliation of non-IFRS net profit for the period to its net profit for the period. [1] Non-IFRS net profit attributable to equity holders of the Company was arrived at after excluding the combined effect of amortization of intangible assets and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments, and related income tax effects. [2] Names grouped by artists and bands, sorted in alphabetical order by family names. About Tencent Music Entertainment Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading online music and audio entertainment platform in China , operating the country's highly popular and innovative music apps: QQ Music, Kugou Music, Kuwo Music and WeSing. TME's mission is to create endless possibilities with music and technology. TME's platform comprises online music, online audio, online karaoke, music-centric live streaming and online concert services, enabling music fans to discover, listen, sing, watch, perform and socialize around music. For more information, please visit ir.tencentmusic.com. Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. Investor Relations Contact Tencent Music Entertainment Group ir@tencentmusic.com +86 (755) 8601-3388 ext. 885034 TENCENT MUSIC ENTERTAINMENT GROUP CONSOLIDATED INCOME STATEMENTS Three Months Ended September 30 Nine Months Ended September 30 2024 2025 2024 2025 RMB RMB US$ RMB RMB US$ Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited (in millions, except per share data) (in millions, except per share data) Revenues Online music services 5,480 6,969 979 15,911 19,627 2,757 Social entertainment services and others 1,535 1,494 210 5,032 4,634 651 7,015 8,463 1,189 20,943 24,261 3,408 Cost of revenues (4,024) (4,781) (672) (12,171) (13,588) (1,909) Gross profit 2,991 3,682 517 8,772 10,673 1,499 Selling and marketing expenses (220) (260) (37) (617) (675) (95) General and administrative expenses (998) (1,051) (148) (2,885) (2,935) (412)
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Total operating expenses (1,218) (1,311) (184) (3,502) (3,610) (507) Interest income 299 245 34 881 796 112 Other gains, net 72 94 13 150 2,665 374 Operating profit 2,144 2,710 381 6,301 10,524 1,478 Share of net profit of investments accounted for using equity method 29 11 2 65 50 7 Finance cost (97) (32) (4) (153) (69) (10) Profit before income tax 2,076 2,689 378 6,213 10,505 1,476 Income tax expense (367) (477) (67) (1,180) (1,438) (202) Profit for the period 1,709 2,212 311 5,033 9,067 1,274 Attributable to: Equity holders of the Company 1,583 2,153 302 4,687 8,853 1,244 Non-controlling interests 126 59 8 346 214 30 Earnings per share for Class A and Class B ordinary shares Basic 0.51 0.70 0.10 1.52 2.89 0.41 Diluted 0.50 0.69 0.10 1.50 2.85 0.40 Earnings per ADS (2 Class A shares equal to 1 ADS) Basic 1.02 1.40 0.20 3.04 5.78 0.81 Diluted 1.01 1.38 0.19 2.99 5.71 0.80 Shares used in earnings per Class A and Class B ordinary share computation: Basic 3,092,300,590 3,074,517,375 3,074,517,375 3,087,337,746 3,063,014,206 3,063,014,206 Diluted 3,134,713,201 3,118,471,326 3,118,471,326 3,132,654,290 3,102,872,454 3,102,872,454 ADS used in earnings per ADS computation Basic 1,546,150,295 1,537,258,688 1,537,258,688 1,543,668,873 1,531,507,103 1,531,507,103 Diluted 1,567,356,601 1,559,235,663 1,559,235,663 1,566,327,145 1,551,436,227 1,551,436,227 TENCENT MUSIC ENTERTAINMENT GROUP UNAUDITED NON-IFRS FINANCIAL MEASURE Three Months Ended September 30 Nine Months Ended September 30 2024 2025 2024 2025 RMB RMB US$ RMB RMB US$ Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited (in millions, except per share data) (in millions, except per share data) Profit for the period 1,709 2,212 311 5,033 9,067 1,274 Adjustments: Amortization of intangible and other assets arising from business acquisitions or combinations* 109 97 14 330 291 41 Share-based compensation 168 211 30 525 519 73 Losses/(Gains) from investments** - 14 2 16 (2,363) (332) Income tax effects*** (46) (57) (8) (167) (171) (24) Non-IFRS Net Profit 1,940 2,477 348 5,737 7,343 1,031 Attributable to: Equity holders of the Company 1,814 2,405 338 5,391 7,103 998 Non-controlling interests 126 72 10 346 240 34 Earnings per share for Class A and Class B ordinary shares Basic 0.59 0.78 0.11 1.75 2.32 0.33 Diluted 0.58 0.77 0.11 1.72 2.29 0.32
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Earnings per ADS (2 Class A shares equal to 1 ADS) Basic 1.17 1.56 0.22 3.49 4.64 0.65 Diluted 1.16 1.54 0.22 3.44 4.58 0.64 Shares used in earnings per Class A and Class B ordinary share computation: Basic 3,092,300,590 3,074,517,375 3,074,517,375 3,087,337,746 3,063,014,206 3,063,014,206 Diluted 3,134,713,201 3,118,471,326 3,118,471,326 3,132,654,290 3,102,872,454 3,102,872,454 ADS used in earnings per ADS computation Basic 1,546,150,295 1,537,258,688 1,537,258,688 1,543,668,873 1,531,507,103 1,531,507,103 Diluted 1,567,356,601 1,559,235,663 1,559,235,663 1,566,327,145 1,551,436,227 1,551,436,227 * Represents the amortization of identifiable assets, including intangible assets such as domain name, trademark, copyrights, supplier resources, corporate customer relationships and non-compete agreement etc., and fair value adjustment on music content (i.e., signed contracts obtained for the rights to access to the music contents for which the amount was amortized over the contract period), resulting from business acquisitions or combination. ** Including the net gains/losses on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments and other expenses in relation to equity transactions of investments. *** Represents the income tax effects of Non-IFRS adjustments. TENCENT MUSIC ENTERTAINMENT GROUP CONSOLIDATED BALANCE SHEETS As at December 31, 2024 As at September 30, 2025 RMB RMB US$ Audited Unaudited Unaudited (in millions) ASSETS Non-current assets Property, plant and equipment 803 1,049 147 Land use rights 2,364 2,308 324 Right-of-use assets 295 309 43 Intangible assets 2,049 2,944 414 Goodwill 19,647 20,517 2,882 Investments accounted for using equity method 4,669 1,856 261 Financial assets at fair value through other comprehensive income 14,498 30,940 4,346 Other investments 309 305 43 Prepayments, deposits and other assets 425 373 52 Deferred tax assets 422 538 76 Term deposits 10,419 13,810 1,940 55,900 74,949 10,528 Current assets Inventories 23 57 8 Accounts receivable 3,508 3,682 517 Prepayments, deposits and other assets 3,793 3,843 540 Other investments 46 50 7 Term deposits 13,999 11,015 1,547 Restricted Cash 11 15 2 Cash and cash equivalents 13,164 11,255 1,581 34,544 29,917 4,202 Total assets 90,444 104,866 14,730 EQUITY Equity attributable to equity holders of the Company Share capital 2 2 0 Additional paid-in capital 29,035 29,895 4,199
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Shares held for share award schemes (520) (794) (112) Treasury shares (550) (664) (93) Other reserves 19,845 27,124 3,810 Retained earnings 20,051 27,188 3,819 67,863 82,751 11,624 Non-controlling interests 1,863 2,682 377 Total equity 69,726 85,433 12,001 LIABILITIES Non-current liabilities Notes payables 3,572 3,534 496 Other payables and other liabilities - 365 51 Deferred tax liabilities 198 679 95 Lease liabilities 219 227 32 Deferred revenue 179 280 39 4,168 5,085 714 Current liabilities Accounts payable 6,879 6,619 930 Other payables and other liabilities 3,381 3,269 459 Notes payables 2,154 - - Current tax liabilities 934 948 133 Lease liabilities 106 104 15 Deferred revenue 3,096 3,408 479 16,550 14,348 2,015 Total liabilities 20,718 19,433 2,730 Total equity and liabilities 90,444 104,866 14,730 TENCENT MUSIC ENTERTAINMENT GROUP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended September 30 Nine Months Ended September 30 2024 2025 2024 2025 RMB RMB US$ RMB RMB US$ Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited (in millions) (in millions) Net cash provided by operating activities 2,165 3,683 517 7,795 7,840 1,101 Net cash used in investing activities (3,337) (1,244) (175) (8,142) (5,098) (716) Net cash used in financing activities (882) (2,122) (298) (3,015) (4,634) (651) Net (decrease)/increase in cash and cash equivalents (2,054) 317 45 (3,362) (1,892) (266) Cash and cash equivalents at beginning of the period 12,251 10,999 1,545 13,567 13,164 1,849 Exchange differences on cash and cash equivalents 12 (61) (9) 4 (17) (2) Cash and cash equivalents at end of the period 10,209 11,255 1,581 10,209 11,255 1,581 SOURCE Tencent Music Entertainment Group https://ir.tencentmusic.com/2025-11-12-Tencent-Music-Entertainment-Group-Announces-Third-Quarter-2025-Unaudited-Financial-Results