Tencent Music Q2 2025 Earnings Call Transcript

Tencent Music Entertainment Group announced its Q2 2025 earnings, with key points including revenue of RMB 7.6bn ($1.1bn), down 8.7% YoY, and net income of RMB 0.7bn ($100m), down 70.3% YoY. The company's music and video streaming services saw a slight increase in revenue, while its online game business declined. The company plans to focus on developing its music and video streaming services and improving its monetization capabilities.

Tencent Music Entertainment Group (TME), the leading online music and audio platform in China, reported its Q2 2025 earnings, revealing a mixed performance. The company's total revenue for the quarter stood at RMB 7.6 billion ($1.1 billion), a decrease of 8.7% year-over-year (YoY). Net income for the period dropped to RMB 0.7 billion ($100 million), a significant 70.3% decline from the same period last year [1].

The revenue decline was primarily attributed to a 17.9% YoY increase in online music services, which reached RMB 6.85 billion. This growth was driven by a 17.1% increase in music subscription revenue to RMB 4.38 billion, with a 9.3% rise in average revenue per paying user (ARPPU) to RMB 11.7 and a 6.3% expansion in paying users to 124.4 million [2].

However, the company's online game business experienced a notable decline, contributing to the overall revenue decrease. The company's stock price reacted positively to the earnings report, opening 12.8% higher in Hong Kong, closing at HK$101.7 by the midday break, up 15.18% [3].

TME's focus for the remainder of the year will be on developing its music and video streaming services and enhancing its monetization capabilities. The company has also been expanding its content ecosystem through strategic partnerships and investments, such as its deal with K-pop companies The Black Label and H M Music, and a collaboration with Chinese star Wang Feng [4].

In conclusion, while TME's Q2 2025 earnings report showed a mixed performance, the company's strategic initiatives and strong execution in its online music services segment provide a foundation for future growth. Investors should closely monitor the company's progress in improving its monetization capabilities and expanding its content ecosystem.

References:
[1] https://www.marketscreener.com/news/tencent-music-entertainment-group-reports-earnings-results-for-the-second-quarter-and-six-months-end-ce7c51dad98ff124
[2] https://simplywall.st/stocks/us/media/nyse-tme/tencent-music-entertainment-group/news/tencent-music-entertainment-group-tme-reports-q2-2025-net-in
[3] https://variety.com/2025/music/news/tencent-music-q2-revenue-2025-1236487221/
[4] https://thebambooworks.com/tencent-musics-profit-jumps-43-in-second-quarter/