Tencent Music Entertainment Group Reports Q2 2025 Net Income of CNY 2,409 Million

Tencent Music Entertainment Group (TME) reported Q2 2025 net income of CNY 2,409 million, a 56% increase in its share price over the last quarter. The earnings improvement reflects strong performance, coinciding with record highs in broader market indices and renewed optimism after promising consumer price data. TME's earnings release and strategic management actions likely added weight to these broader market gains, supporting its notable price movement.

Tencent Music Entertainment Group (TME) reported robust financial results for the second quarter of 2025, with net income surging to CNY 2,409 million, a 56% increase over the previous quarter. This performance aligns with broader market indices reaching record highs and renewed consumer optimism, driven by promising price data [1].

The company's revenue for the quarter stood at CNY 8.44 billion (US$1.18 billion), representing a 17.9% year-over-year increase. This growth was primarily driven by strong performance in online music services, which saw a 26.4% year-over-year increase to CNY 6.85 billion (US$957 million) [1]. Music subscription revenue rose 17.1% to CNY 4.38 billion (US$611 million), while monthly average revenue per paying user (ARPPU) climbed to CNY 11.7 from CNY 10.7 in the same period last year [1].

TME's operational highlights included a 6.3% increase in paying users to 124.4 million and a 3.2% decrease in monthly active users to 553 million. The company expanded its content ecosystem through strategic partnerships with K-pop companies The Black Label and H M Music, and collaborations with Chinese star Wang Feng and SM Entertainment. Live events also contributed significantly, with G-Dragon's concert tour in Macau drawing 36,000 fans [1].

Product and membership innovation remained central to TME's strategy. New features such as Viper HiFi and one-click audio enhancement 2.0 on Kugou Music, along with an AI Chorus tool, were introduced. SVIP users enjoyed exclusive benefits like early concert ticket access, artist digital albums, and collectible star cards from various artists [1].

Executive Chair Cussion Pang and CEO Ross Liang highlighted the company's focus on product innovation and user experience, noting that SVIP subscribers recently surpassed 15 million. This milestone reflects the deep trust and loyalty of users, driving solid growth in the online music business [1].

TME's earnings release and strategic management actions likely added weight to the broader market gains, supporting its notable price movement. The company's strong performance and strategic initiatives position it well for continued growth in the music entertainment space.

References:
[1] https://variety.com/2025/music/news/tencent-music-q2-revenue-2025-1236487221/
[2] https://www.morningstar.com/news/pr-newswire/20250812cn47326/tencent-music-entertainment-group-announces-second-quarter-2025-unaudited-financial-results