TLDR

  • In Q4 2025, total revenue increased by 15.9% year-over-year to RMB8.64 billion, surpassing analyst projections of RMB8.44 billion
  • Revenue from online music services climbed 21.7% to RMB7.10 billion, featuring a 40.8% rise in non-subscription income
  • Adjusted EPS came in at RMB1.41, failing to meet the consensus forecast of RMB1.54
  • The number of paying online music users grew 5.3% YoY to 127.4 million, while SVIP subscribers exceeded 20 million
  • For the full year of 2025, adjusted net profit soared 25% to RMB9.59 billion, and the board announced an annual dividend of roughly $368 million

On Tuesday, Tencent Music Entertainment (TME) released a mixed report for Q4 2025, as revenue exceeded Wall Street predictions while earnings fell short of expectations.

Quarterly total revenue reached RMB8.64 billion ($1.24 billion), a 15.9% increase from the previous year, outperforming the analyst consensus of RMB8.44 billion. Conversely, adjusted earnings per ADS were RMB1.41 ($0.20), which was lower than the anticipated RMB1.54.

Tencent Music Entertainment Group, TME
TME Stock Card

The growth in revenue was primarily fueled by online music. This segment saw a 21.7% year-over-year increase, reaching RMB7.10 billion.

Music subscriptions contributed RMB4.56 billion to this total, rising 13.2% YoY. TME attributed this growth to enhanced membership benefits, such as early access to concerts and artist merchandise.

Non-subscription music revenue was a highlight, surging 40.8% YoY to RMB2.54 billion, driven mainly by offline events and advertising services.

Paying user metrics showed positive trends. The count of online music paying users increased by 5.3% YoY to 127.4 million, and the monthly average revenue per user rose 7.2% to RMB11.9.

By the end of 2025, the company’s SVIP subscriber base surpassed 20 million, a premium tier TME has been aggressively promoting.

Gross margin increased slightly to 44.7%, compared to 43.6% in the corresponding period last year.

Full-Year 2025 Results

For the full year, TME recorded revenue of RMB32.90 billion, a 15.8% YoY increase. Adjusted net profit hit RMB9.59 billion, representing a 25% jump over the previous year.

In Q4, net profit attributable to equity holders was RMB2.20 billion, up 12.6% YoY, while Non-IFRS net profit stood at RMB2.49 billion, an increase of 9%.

The company concluded 2025 with RMB38.04 billion in cash and investments, maintaining a strong liquidity position.

Executive Chairman Cussion Pang stated that in 2025, the company “executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion”.

Dividend and Analyst View

The board of TME announced an annual cash dividend of about $368 million, equivalent to $0.24 per ADS.

The latest analyst rating for the stock is Buy, with a price target of HK$71.00. TME is listed on the NYSE under the symbol TME and on the Hong Kong Stock Exchange under the code 1698.

At the time of the report, TME’s Hong Kong-listed shares had risen by 0.62%.