TLDR
- Q4 2025 revenue climbed 15.9% YoY to RMB8.64 billion, surpassing analyst projections of RMB8.44 billion
- Online music division revenue jumped 21.7% to RMB7.10 billion, driven by 40.8% growth in non-subscription income
- Adjusted EPS of RMB1.41 fell short of consensus forecast of RMB1.54
- Paying user base for online music expanded 5.3% YoY to 127.4 million; SVIP membership exceeded 20 million
- Annual 2025 adjusted net profit rose 25% to RMB9.59 billion; company announced approximately $368 million annual dividend
Tencent Music Entertainment (TME) delivered a contrasting Q4 2025 performance on Tuesday — while revenue exceeded Wall Street projections, earnings fell below analyst targets.
🎧 Tencent Music Entertainment Group – $TME -Q4 & FY2025 — Deep Dive Analysis
📊 1. The Most Important KPI Trend (Hidden in Plain Sight)
👇 Core user metrics:
MAU: 528M (-5% YoY) ⚠️
Paying users: 127.4M (+5.3% YoY) ✅
ARPPU: RMB 11.9 (+7.2% YoY) ✅
🧠 What this REALLY means:… pic.twitter.com/kdOsUSobEf— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) March 17, 2026
Quarterly revenue reached RMB8.64 billion ($1.24 billion), representing a 15.9% year-over-year increase. This figure surpassed the analyst consensus projection of RMB8.44 billion. Conversely, adjusted earnings per ADS registered at RMB1.41 ($0.20), missing the anticipated RMB1.54 mark.
Tencent Music Entertainment Group, TME
The revenue performance was predominantly fueled by the online music division. This segment experienced 21.7% year-over-year expansion, reaching RMB7.10 billion.
Subscription-based music services generated RMB4.56 billion of that total, marking a 13.2% YoY increase. TME attributed this growth to enhanced membership benefits — including priority access to live concerts and exclusive artist merchandise.
The real highlight was non-subscription music revenue, which surged 40.8% YoY to RMB2.54 billion. Live offline events and advertising solutions were the primary contributors.
User metrics showed positive momentum. The online music paying user count increased 5.3% YoY to 127.4 million, while monthly average revenue per paying user advanced 7.2% to RMB11.9.
The company’s premium SVIP subscriber count surpassed 20 million by year-end 2025. This represents a tier that TME has aggressively promoted as its flagship premium product.
Gross margin improved to 44.7%, compared to 43.6% in the corresponding quarter of the previous year.
Full-Year 2025 Results
On an annual basis, TME generated revenue of RMB32.90 billion, reflecting 15.8% YoY growth. Adjusted net profit totaled RMB9.59 billion, representing a 25% increase versus the previous year.
Net profit attributable to equity holders for Q4 stood at RMB2.20 billion, up 12.6% YoY. Non-IFRS net profit registered at RMB2.49 billion, climbing 9%.
The company concluded 2025 with RMB38.04 billion in cash and investment holdings — indicating a robust liquidity profile.
Executive Chairman Cussion Pang noted the company “executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion” throughout 2025.
Dividend and Analyst View
TME’s board approved an annual cash dividend of roughly $368 million, equivalent to $0.24 per ADS.
The latest analyst recommendation on the stock is a Buy rating, accompanied by a HK$71.00 price target. TME is listed 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 were trading up 0.62%.
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