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 reach RMB7.10 billion, with non-subscription income soaring 40.8%
- Adjusted earnings per share of RMB1.41 fell below consensus expectations of RMB1.54
- Paying subscribers for online music increased 5.3% YoY to 127.4 million users; 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 fourth-quarter 2025 earnings report on Tuesday that showed contrasting results — the streaming giant exceeded revenue projections while falling short on earnings metrics.
The company’s quarterly revenue reached RMB8.64 billion ($1.24 billion), representing a 15.9% increase compared to the same period last year. This figure surpassed Wall Street’s consensus forecast of RMB8.44 billion. Despite the revenue win, adjusted earnings per ADS came in at RMB1.41 ($0.20), missing analyst expectations of RMB1.54.
Tencent Music Entertainment Group, TME
The online music division powered the quarterly performance, with revenue climbing 21.7% year-over-year to hit RMB7.10 billion.
Subscription-based music revenue contributed RMB4.56 billion to this total, marking a 13.2% YoY increase. The company attributed this growth to enhanced membership benefits, which now include priority access to live concerts and exclusive artist merchandise.
The most impressive performance came from non-subscription music revenue, which skyrocketed 40.8% YoY to RMB2.54 billion. Live offline performances and advertising solutions were the primary growth engines.
User metrics showed positive momentum across the board. The online music paying user base expanded 5.3% YoY to 127.4 million subscribers, while monthly average revenue per paying user increased 7.2% to RMB11.9.
The premium SVIP subscription tier reached a significant milestone, surpassing 20 million subscribers by year-end 2025. This represents a key segment TME has actively promoted as its top-tier service.
Gross profit margin improved to 44.7%, up from 43.6% during the comparable quarter last year.
Annual 2025 Performance
Looking at the complete fiscal year, TME generated total revenue of RMB32.90 billion, reflecting a 15.8% YoY increase. The company’s adjusted net profit hit RMB9.59 billion, marking a robust 25% gain versus the previous year.
Fourth-quarter net profit attributable to equity shareholders reached RMB2.20 billion, up 12.6% YoY. Non-IFRS net profit stood at RMB2.49 billion, representing a 9% year-over-year increase.
The streaming platform concluded 2025 with RMB38.04 billion in combined cash reserves and investments — demonstrating strong financial stability.
Executive Chairman Cussion Pang stated 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 of directors approved an annual cash distribution of roughly $368 million, equivalent to $0.24 per ADS.
The latest analyst coverage on the stock maintains a Buy rating, with a price target of HK$71.00. The company’s shares trade on the New York Stock Exchange under ticker symbol TME and on the Hong Kong Stock Exchange as 1698.
At the time of the earnings announcement, TME’s Hong Kong-listed shares gained 0.62%.
