Tencent Music Entertainment (TME) posted a mixed Q4 2025 report on Tuesday — revenue beat Wall Street expectations, but earnings came up short of forecasts.
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
Total revenue for the quarter came in at RMB8.64 billion ($1.24 billion), up 15.9% year over year. That topped the analyst consensus of RMB8.44 billion. However, adjusted earnings per ADS landed at RMB1.41 ($0.20), below the expected RMB1.54.
Tencent Music Entertainment Group, TME
The revenue story was driven almost entirely by online music. That segment grew 21.7% year over year to RMB7.10 billion.
Music subscriptions accounted for RMB4.56 billion of that, up 13.2% YoY. TME credited expanded membership perks — including early access to live shows and artist merch — for the growth.
Non-subscription music revenue was the standout, jumping 40.8% YoY to RMB2.54 billion. Offline performances and advertising services were the main drivers.
Paying user numbers moved in the right direction. Online music paying users rose 5.3% YoY to 127.4 million, and monthly average revenue per paying user grew 7.2% to RMB11.9.
The company’s SVIP subscriber base crossed 20 million by the end of 2025. That’s a tier TME has been pushing hard as a premium offering.
Gross margin ticked up to 44.7%, from 43.6% in the same period last year.
For the full year, TME reported revenue of RMB32.90 billion, up 15.8% YoY. Adjusted net profit reached RMB9.59 billion, a 25% jump from the prior year.
Net profit attributable to equity holders in Q4 came in at RMB2.20 billion, up 12.6% YoY. Non-IFRS net profit was RMB2.49 billion, up 9%.
The company ended 2025 with RMB38.04 billion in cash and investments — a healthy liquidity position.
Executive Chairman Cussion Pang said the company “executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion” in 2025.
TME’s board declared an annual cash dividend of approximately $368 million, or $0.24 per ADS.
The most recent analyst rating on the stock is a Buy, with a HK$71.00 price target. TME trades on the NYSE under the ticker TME and on the Hong Kong Stock Exchange under 1698.
As of the report, TME’s Hong Kong-listed stock was up 0.62%.
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