Contradictions Unveiled: Tencent Music's 2025 Q2 Earnings Call Highlights Key Divergences in Growth Strategy and Revenue Potential

Advertising revenue and growth strategy, podcast and long-form audio growth, AI strategy and impact on revenue and margins, subscriber growth strategy and SVIP penetration, synergies with Ximalaya acquisition are the key contradictions discussed in Tencent Music Entertainment Group's latest 2025Q2 earnings call.



Revenue and Profitability Growth:
- Tencent Music Entertainment Group reported revenue of RMB 8.4 billion for Q2 2025, up 18% year-over-year.
- This growth was driven by strong performance in music subscription, advertising, artist-related merchandise sales, and offline performances.

Music Subscription and Advertising Revenue:
- Online music revenues grew 26% year-on-year to RMB 6.9 billion, with music subscription revenues growing 17% year-on-year to RMB 4.4 billion.
- Advertising revenue continued to grow on both year-on-year and quarter-on-quarter bases, primarily due to innovative ad formats, increased advertisers, and high eCPM during promotional events.

Content and Platform Enhancements:
- The company expanded its content ecosystem through collaborations with international labels and artists, resulting in an increase in SVIP members to 15 million.
- Enhancements in content quality, such as superior sound quality and artist-centric privileges, drove ARPPU growth to RMB 11.7.

Offline Concerts and Fan Economy:
- Offline concerts and artist merchandise sales contributed significantly to overall revenue, with a doubling from a year-over-year basis.
- Growth was driven by successful international concert productions, strategic partnerships, and a focus on enhancing fan engagement and event scheduling.