Tencent Music Entertainment (TME) delivered a Q4 2025 earnings report on Tuesday that showed contrasting results — sales figures exceeded market predictions, while profit metrics fell below analyst projections.
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
The company generated total revenue of RMB8.64 billion ($1.24 billion) during the quarter, marking a 15.9% year-over-year increase. This figure beat the analyst consensus estimate of RMB8.44 billion. On the flip side, adjusted earnings per ADS reached RMB1.41 ($0.20), missing the anticipated RMB1.54 mark.
Tencent Music Entertainment Group, TME
The impressive revenue performance was primarily fueled by the online music division. This business segment experienced 21.7% year-over-year expansion to RMB7.10 billion.
Music subscription services contributed RMB4.56 billion to this total, representing 13.2% YoY growth. According to TME, the increase stemmed from enhanced membership benefits — such as priority access to live concerts and exclusive artist merchandise.
The real highlight came from non-subscription music revenue, which skyrocketed 40.8% YoY to RMB2.54 billion. Live performances and advertising solutions were the primary catalysts behind this surge.
User metrics showed positive momentum across the board. The number of paying users for online music services increased 5.3% YoY to 127.4 million, while monthly average revenue per paying user expanded 7.2% to RMB11.9.
TME’s SVIP subscriber count reached 20 million by year-end 2025. This premium subscription tier has been a strategic focus area for the company.
The gross margin improved to 44.7%, compared to 43.6% during the corresponding period in 2024.
Looking at the complete 2025 fiscal year, TME generated revenue totaling RMB32.90 billion, reflecting 15.8% YoY growth. Adjusted net profit hit RMB9.59 billion, representing a 25% increase from the previous year.
Net profit attributable to equity holders for Q4 stood at RMB2.20 billion, up 12.6% YoY. Non-IFRS net profit totaled RMB2.49 billion, rising 9%.
TME concluded 2025 holding RMB38.04 billion in cash and investment assets — demonstrating robust financial strength.
Executive Chairman Cussion Pang commented that the company “executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion” throughout 2025.
The board of directors at TME’s approved an annual cash dividend distribution of roughly $368 million, equivalent to $0.24 per ADS.
The latest analyst recommendation for the stock stands at Buy, accompanied by a HK$71.00 target price. TME is publicly traded on the NYSE under ticker symbol TME and on the Hong Kong Stock Exchange as 1698.
At the time of the earnings release, TME’s Hong Kong-listed shares were trading up 0.62%.
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