Key Highlights

  • Q4 2025 revenue reached RMB8.64 billion, representing 15.9% YoY growth and exceeding analyst projections of RMB8.44 billion
  • Online music services revenue climbed 21.7% to RMB7.10 billion, with non-subscription revenue increasing 40.8%
  • Adjusted EPS of RMB1.41 fell short of the RMB1.54 consensus estimate
  • Online music paying users reached 127.4 million, representing 5.3% YoY growth; SVIP subscribers exceeded 20 million
  • Full-year 2025 adjusted net profit increased 25% to RMB9.59 billion; board approved an annual dividend of approximately $368 million

Tencent Music Entertainment (TME) delivered fourth-quarter 2025 results on Tuesday that presented a split picture — revenue surpassed Wall Street projections while earnings fell below analyst forecasts.

Quarterly revenue totaled RMB8.64 billion ($1.24 billion), marking a 15.9% year-over-year increase. This figure exceeded the analyst consensus of RMB8.44 billion. Meanwhile, adjusted earnings per ADS came in at RMB1.41 ($0.20), trailing the anticipated RMB1.54.


TME Stock Card
Tencent Music Entertainment Group, TME

Online music services powered the revenue performance. This division expanded 21.7% year over year to reach RMB7.10 billion.

Music subscription revenue contributed RMB4.56 billion, growing 13.2% YoY. TME attributed this expansion to enhanced membership benefits — featuring priority access to live performances and artist merchandise.

Non-subscription music revenue emerged as the standout performer, surging 40.8% YoY to RMB2.54 billion. Offline concerts and advertising services fueled this growth.

Paying user metrics showed positive momentum. Online music paying users increased 5.3% YoY to 127.4 million, while monthly average revenue per paying user advanced 7.2% to RMB11.9.

The company’s SVIP subscriber count surpassed 20 million by year-end 2025. TME has positioned this tier as its flagship premium membership offering.

Gross margin improved to 44.7%, compared with 43.6% in the corresponding period of the previous year.

Full-Year 2025 Performance

Across the entire year, TME generated revenue of RMB32.90 billion, growing 15.8% YoY. Adjusted net profit totaled RMB9.59 billion, representing a 25% increase from the previous year.

Net profit attributable to equity holders in Q4 stood at RMB2.20 billion, rising 12.6% YoY. Non-IFRS net profit came in at RMB2.49 billion, up 9%.

The company concluded 2025 holding RMB38.04 billion in cash and investments — demonstrating robust liquidity.

Executive Chairman Cussion Pang stated the company “executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion” in 2025.

Dividend and Analyst Perspective

TME’s board approved an annual cash dividend of approximately $368 million, equivalent to $0.24 per ADS.

The latest analyst rating assigns the stock a Buy recommendation, accompanied by a HK$71.00 price target. TME trades on the NYSE under the ticker TME and on the Hong Kong Stock Exchange under 1698.

At the time of the earnings release, TME’s Hong Kong-listed shares had gained 0.62%.