Tencent Music Entertainment Group (TME) Q3 2025 earnings summary

Executive summary

• Achieved total revenues of RMB 8.5 billion in Q3 2025, up 21% year-on-year, driven by music subscriptions, live events, advertising, and artist merchandise.

• Online music paying users reached 125.7 million, with a paying ratio of 22.8% and a 5.6% YoY increase in subscribers.

• Maintains a leading position in China's online music industry, operating three of the top five music mobile apps and offering a content library of over 260 million tracks.

• Expanded global presence through large-scale concerts, new proprietary concert IPs, and renewed partnerships with major artists and labels.

• Continued innovation in user experience, AI-powered features, and diversified membership tiers, leading to increased SVIP penetration and ARPPU.

Financial highlights

• Total revenues grew 21% year-on-year to RMB 8.5 billion; online music services revenue rose 27.2% to RMB 6.97 billion.

• Music subscription revenues reached RMB 4.5 billion, with monthly ARPPU at RMB 11.9, up 10.2% YoY.

• Net profit attributable to equity holders rose 36% to RMB 2.2 billion; non-IFRS net profit was RMB 2.48 billion, up 27.7%.

• Gross margin improved to 43.5%, up 0.9 percentage points year-on-year.

• Cash, cash equivalents, term deposits, and short-term investments totaled RMB 36.08 billion as of September 30, 2025.

Outlook and guidance

• Expects continued healthy growth in music subscriptions, though at a slower rate due to a high base; non-subscription businesses to grow faster.

• Focus remains on premium content, technology-driven innovation, and diversified monetization to drive future growth.

• Continued investment in AI, AIGC tools, and virtual fan-artist communities to enhance user engagement and monetization.

• Q4 2025 and 2026 to see strong performance in online music, advertising, live concerts, and fan-based economy, with new product combinations and service formats.

• Confident in high-quality growth, with ongoing investment in IP cultivation, self-produced content, and product innovation.