Tencent Music Entertainment Group Announces Fourth Quarter and Full-Year 2025 Unaudited Financial Results

SHENZHEN, China, March 17, 2026 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights

Full Year 2025 Financial Highlights

Mr. Cussion Pang, Executive Chairman of TME, commented, "In 2025, we executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion. Fueled by the solid growth of our subscription services and the powerful momentum of music IP non-subscription offerings, we are deepening a differentiated, all-in-one music services platform. This enables us to unlock greater value from music IPs, creating new opportunities for artists, and address a larger market. As the competitive landscape in music continues to evolve, our track record in delivering integrated, expansive, and multi-faceted services gives us a distinct competitive edge. With disciplined investment and persistent innovation guided by long-term value creation, we are confident in spearheading industry advancement."

Mr. Ross Liang, CEO of TME, continued, "Amid rapid advancements in AI technology and evolving consumer expectations, we remained agile, responding proactively on multiple fronts to better serve our users and strengthen our content platform flywheel. Our relentless focus on product enhancement and a multi-tiered, user-centric strategy drove effective subscriber conversion, deeper engagement, and increased wallet share throughout 2025. Notably, driven by differentiated, expansive content privileges and immersive experiences, our SVIP user base surpassed 20 million, with ARPPU continuing to trend upward. Our newly launched ad-supported subscription plan is gaining initial progress and will, over time, allow us to broaden user access and attract new audiences."

Fourth Quarter 2025 Operational Highlights

4Q25

4Q24

YoY %

MAUs – online music (million)

528

556

(5.0 %)

Paying users – online music (million)

127.4

121.0

5.3 %

Monthly ARPPU – online music (RMB)

11.9

11.1

7.2 %

CONTENT - Diversified and differentiated offering strengthened our content advantage and broadened audience appeal.

IP-VALUE - Unlocked greater IP value through accelerating expansion of more live performance, curated merchandise, and broader strategic artist partnerships.

PLATFORM - Comprehensive product offerings and integrated use cases deepened user engagement, making music journeys more ubiquitous, enriching, and immersive.

SUBSCRIPTION - SVIP memberships further scaled, capturing more users and deepening music consumption.

AI - Harnessed AI to empower music creation, elevate users' music experiences, and drive well-rounded music consumption.

Fourth Quarter 2025 Financial Review

Total revenues increased by RMB1.18 billion, or 15.9%, to RMB8.64 billion (US$1.24 billion) from RMB7.46 billion in the same period of 2024.

Cost of revenues increased by 13.7% year-over-year to RMB4.78 billion (US$683 million), mainly due to increased costs related to offline performances, advertising services and IP related costs, such as costs for artist-related merchandise. Meanwhile, revenue sharing fees decreased, resulting from declines in both revenue sharing ratio and revenues from social entertainment services.

Gross margin increased to 44.7% from 43.6% in the same period of 2024, primarily due to increased revenues from music subscriptions and advertising services, alongside a lower revenue sharing ratio for social entertainment services, and partly offset by increased revenues from offline performances.

Total operating expenses increased by 6.2% year-over-year to RMB1.25 billion (US$178 million). Operating expenses as a percentage of total revenues decreased to 14.4% from 15.7% in the same period of 2024.

Total operating profit was RMB2.84 billion (US$406 million) in the fourth quarter of 2025, representing 17.9% year-over-year increase.

Income tax expenses for the fourth quarter of 2025 were RMB486 million (US$69 million), compared with RMB423 million in the same period of 2024.

For the fourth quarter of 2025, net profit was RMB2.29 billion (US$327 million) and net profit attributable to equity holders of the Company was RMB2.20 billion (US$315 million). Non-IFRS net profit was RMB2.58 billion (US$369 million) and non-IFRS net profit attributable to equity holders of the Company was RMB2.49 billion (US$355 million). Please refer to the section in this press release titled "Non-IFRS Financial Measure" for details.

Basic and diluted earnings per American Depositary Shares ("ADS") for the fourth quarter of 2025 were RMB1.43 (US$0.20) and RMB1.41 (US$0.20), respectively; non-IFRS basic and diluted earnings per ADS were RMB1.61(US$0.23) and RMB1.60 (US$0.23), respectively. For the fourth quarter of 2025, the Company had weighted averages of 1.54 billion basic and 1.56 billion diluted ADSs outstanding, respectively. Each ADS represents two of the Company's Class A ordinary shares.

As of December 31, 2025, the combined balance of the Company's cash, cash equivalents, term deposits and short-term investments amounted to RMB38.04 billion (US$5.44 billion), compared with RMB36.08 billion as of September 30, 2025.

Full Year 2025 Financial Review

Total revenues increased by RMB4.50 billion, or 15.8%, to RMB32.90 billion (US$4.71 billion) from RMB28.40 billion in 2024.

Cost of revenues increased by 12.2% year-over-year to RMB18.37 billion (US$2.63 billion), mainly due to increased costs related to offline performances, IP related costs, such as costs for artist-related merchandise, and advertising costs. Meanwhile, revenue sharing fees decreased, resulting from declines in both revenue sharing ratio and revenues from social entertainment services.

Gross margin increased to 44.2% from 42.3% in 2024, primarily due to increased revenues from music subscriptions and advertising services, along with a lower revenue sharing ratio for social entertainment services, partly offset by increased revenues from offline performances and artist-related merchandise.

Total operating expenses increased by 3.9% year-over-year to RMB4.86 billion (US$695 million). Operating expenses as a percentage of total revenues decreased to 14.8% from 16.5% in 2024.

Other gains, net were RMB2.63 billion (US$376 million) in 2025, which included a gain of RMB2.37 billion (US$339 million) on deemed disposal of an associate in Q1 2025. In March 2025, we received a 2% equity interests of Universal Music Group ("UMG") through a distribution-in-kind from one of our associates, which was designated as financial assets at fair value through other comprehensive income, and recognized a gain of RMB2.37 billion (US$339 million) on deemed disposal of this associate. Following the distribution, we hold the equity interests of UMG directly.

Total operating profit was RMB13.36 billion (US$1.91 billion) for the full year of 2025, representing an increase of 53.4% year-over-year.

Income tax expenses for the full year of 2025 were RMB1.92 billion (US$275 million), compared with RMB1.60 billion in 2024.

For the full year of 2025, net profit was RMB11.35 billion (US$1.62 billion) and net profit attributable to equity holders of the Company was RMB11.06 billion (US$1.58 billion). Non-IFRS net profit was RMB9.92 billion (US$1.42 billion) and non-IFRS net profit attributable to equity holders of the Company was RMB9.59 billion (US$1.37 billion). Please refer to the section in this press release titled "Non-IFRS Financial Measure" for details.

Basic and diluted earnings per ADS for the full year of 2025 were RMB7.21(US$1.03) and RMB7.11 (US$1.02), respectively; non-IFRS basic and diluted earnings per ADS were RMB6.25 (US$0.89) and RMB6.17 (US$0.88), respectively. For the full year of 2025, the Company had weighted averages of 1.53 billion basic and 1.55 billion diluted ADSs outstanding, respectively.

Declaration of 2025 Dividend

For the fiscal year of 2025, the Company's board of directors declared a cash dividend of US$0.12 per ordinary share, or US$0.24 per ADS, to holders of record of ordinary shares and ADSs as of the close of business on April 2, 2026. The aggregate amount of cash dividends to be paid will be approximately US$368 million and is expected to be paid on or around April 20, 2026 and on or around April 23, 2026 for holders of ordinary shares and holders of ADSs, respectively. Holders of the Company's ADSs will receive the cash dividends through the depositary, The Bank of New York Mellon, subject to the terms of the deposit agreement.

Planned Disclosure Change

We adopted the number of paid subscribers and ARPPU as key operating metrics for our online music services at the time of our listing; however, our business model has significantly evolved in recent years. As advertising and other IP related offerings scale, and as we offer multi-tiered membership for online music subscriptions, the business impact of each paid membership varies. As a result, we are increasingly focused on revenue and profit as our primary performance indicators. Given this evolution, starting from next quarter, we will discontinue the disclosure of certain quarterly operating metrics, including online music MAU, paying users and ARPPU. We will instead report the number of total paying users across our music services annually, as of year-end.

Environmental, Social, and Governance ("ESG")

We continued to enhance accessibility and inclusive design, broadening access for users of different ages and abilities. For example, QQ Music pioneered a Children's Hearing Protection Mode, leveraging AI to optimize audio output for a healthy listening experience.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.9931 to US$1.00, the noon buying rate in effect on December 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Non-IFRS Financial Measure

The Company uses non-IFRS net profit for the period, which is a non-IFRS financial measure, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS net profit helps identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that the Company includes in its profit for the period. TME believes that non-IFRS net profit for the period provides useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

Non-IFRS net profit for the period should not be considered in isolation or construed as an alternative to operating profit, net profit for the period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS net profit for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS net profit for the period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. TME encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Non-IFRS net profit for the period represents profit for the period excluding amortization of intangible and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments and related income tax effects.

Please see the "Unaudited Non-IFRS Financial Measure" included in this press release for a full reconciliation of non-IFRS net profit for the period to its net profit for the period.

[1] Non-IFRS net profit attributable to equity holders of the Company was arrived at after excluding the combined effect of amortization of intangible assets and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments, and related income tax effects.

[2] Names grouped by artists and bands, sorted in alphabetical order by family names.

About Tencent Music Entertainment

Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading online music and audio entertainment platform in China, operating the country's highly popular and innovative music apps: QQ Music, Kugou Music, Kuwo Music and WeSing. TME's mission is to create endless possibilities with music and technology. TME's platform comprises online music, online audio, online karaoke, music-centric live streaming and online concert services, enabling music fans to discover, listen, sing, watch, perform and socialize around music. For more information, please visit ir.tencentmusic.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact

Tencent Music Entertainment Group

[email protected]

+86 (755) 8601-3388 ext. 885034

TENCENT MUSIC ENTERTAINMENT GROUP

CONSOLIDATED INCOME STATEMENTS

Three Months Ended December 31

Year Ended December 31

2024

2025

2024

2025

RMB

US$

RMB

US$

Unaudited

(in millions, except per share data)

Revenues

Online music services

5,831

7,099

1,015

21,742

26,726

3,822

Social entertainment services and others

1,627

1,542

221

6,659

6,176

883

7,458

8,641

1,236

28,401

32,902

4,705

Cost of revenues

(4,205)

(4,779)

(683)

(16,376)

(18,367)

(2,626)

Gross profit

3,253

3,862

552

12,025

14,535

2,078

Selling and marketing expenses

(248)

(266)

(38)

(865)

(941)

(135)

General and administrative expenses

(926)

(981)

(140)

(3,811)

(3,916)

(560)

Total operating expenses

(1,174)

(1,247)

(178)

(4,676)

(4,857)

(695)

Interest income

315

258

1,196

1,054

151

Other gains/(losses), net

(33)

(5)

165

2,632

376

Operating profit

2,409

2,840

406

8,710

13,364

1,911

Share of net profit/(loss) of investments accounted

for using equity method

(8)

(1)

Finance cost

(60)

(9)

(94)

(129)

(18)

Profit before income tax

2,499

2,772

396

8,712

13,277

1,899

Income tax expense

(423)

(486)

(69)

(1,603)

(1,924)

(275)

Profit for the period/year

2,076

2,286

327

7,109

11,353

1,623

Attributable to:

Equity holders of the Company

1,957

2,203

315

6,644

11,056

1,581

Non-controlling interests

119

465

297

Earnings per share for Class A and Class B

ordinary shares

Basic

0.64

0.72

0.10

2.15

3.60

0.52

Diluted

0.63

0.71

0.10

2.12

3.56

0.51

Earnings per ADS (2 Class A shares equal to 1 ADS)

Basic

1.27

1.43

0.20

4.31

7.21

1.03

Diluted

1.26

1.41

0.20

4.24

7.11

1.02

Shares used in earnings per Class A and Class B

ordinary share computation:

Basic

3,075,189,032

3,079,832,739

3,084,230,029

3,067,255,442

Diluted

3,112,342,854

3,115,495,322

3,130,861,720

3,108,803,728

ADS used in earnings per ADS computation

Basic

1,537,594,516

1,539,916,369

1,542,115,015

1,533,627,721

Diluted

1,556,171,427

1,557,747,661

1,565,430,860

1,554,401,864

TENCENT MUSIC ENTERTAINMENT GROUP

UNAUDITED NON-IFRS FINANCIAL MEASURE

Three Months Ended December 31

Year Ended December 31

2024

2025

2024

2025

RMB

US$

RMB

US$

Unaudited

(in millions, except per share data)

Profit for the period/year

2,076

2,286

327

7,109

11,353

1,623

Adjustments:

Amortization of intangible and other assets arising from

business acquisitions or combinations*

110

440

386

Share-based compensation

156

161

681

680

Losses/(gains) from investments**

110

(2,285)

(327)

Income tax effects***

(37)

(39)

(6)

(204)

(210)

(30)

Non-IFRS Net Profit

2,399

2,581

369

8,136

9,924

1,419

Attributable to:

Equity holders of the Company

2,280

2,485

355

7,671

9,588

1,371

Non-controlling interests

119

465

336

Earnings per share for Class A and Class B

ordinary shares

Basic

0.74

0.81

0.12

2.49

3.13

0.45

Diluted

0.73

0.80

0.11

2.45

3.08

0.44

Earnings per ADS (2 Class A shares equal to 1 ADS)

Basic

1.48

1.61

0.23

4.97

6.25

0.89

Diluted

1.47

1.60

0.23

4.90

6.17

0.88

Shares used in earnings per Class A and Class B

ordinary share computation:

Basic

3,075,189,032

3,079,832,739

3,084,230,029

3,067,255,442

Diluted

3,112,342,854

3,115,495,322

3,130,861,720

3,108,803,728

ADS used in earnings per ADS computation

Basic

1,537,594,516

1,539,916,369

1,542,115,015

1,533,627,721

Diluted

1,556,171,427

1,557,747,661

1,565,430,860

1,554,401,864

* Represents the amortization of identifiable assets, including intangible assets such as domain name, trademark, copyrights, supplier resources, corporate customer relationships and non-compete agreement etc., and fair value adjustment on music content (i.e., signed contracts

obtained for the rights to access to the music contents for which the amount was amortized over the contract period), resulting from business acquisitions or combination.

** Including the net gains/losses on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments and other expenses in relation to equity transactions of investments.

*** Represents the income tax effects of Non-IFRS adjustments.

TENCENT MUSIC ENTERTAINMENT GROUP

CONSOLIDATED BALANCE SHEETS

As at December 31, 2024

As at December 31, 2025

RMB

US$

Audited

Unaudited

(in millions)

ASSETS

Non-current assets

Property, plant and equipment

803

1,201

172

Land use rights

2,364

2,290

327

Right-of-use assets

295

287

Intangible assets

2,049

2,899

415

Goodwill

19,647

20,521

2,934

Investments accounted for using equity method

4,669

1,659

237

Financial assets at fair value through other comprehensive income

14,498

26,231

3,751

Other investments

309

303

Prepayments, deposits and other assets

425

365

Deferred tax assets

422

498

Term deposits

10,419

13,810

1,975

55,900

70,064

10,019

Current assets

Inventories

Accounts receivable

3,508

3,903

558

Prepayments, deposits and other assets

3,793

4,183

598

Other investments

Term deposits

13,999

15,763

2,254

Restricted Cash

Cash and cash equivalents

13,164

8,470

1,211

34,544

32,458

4,641

Total assets

90,444

102,522

14,660

EQUITY

Equity attributable to equity holders of the Company

Share capital

Additional paid-in capital

29,035

29,919

4,278

Shares held for share award schemes

(520)

(801)

(115)

Treasury shares

(550)

(664)

(95)

Other reserves

19,845

22,450

3,210

Retained earnings

20,051

29,381

4,201

67,863

80,287

11,481

Non-controlling interests

1,863

2,763

395

Total equity

69,726

83,050

11,876

LIABILITIES

Non-current liabilities

Notes payables

3,572

3,497

500

Other payables and other liabilities

379

Deferred tax liabilities

198

504

Lease liabilities

219

200

Deferred revenue

179

303

4,168

4,883

698

Current liabilities

Accounts payable

6,879

6,284

899

Other payables and other liabilities

3,381

3,558

509

Notes payables

2,154

Current tax liabilities

934

1,092

156

Lease liabilities

106

116

Deferred revenue

3,096

3,539

506

16,550

14,589

2,086

Total liabilities

20,718

19,472

2,784

Total equity and liabilities

90,444

102,522

14,660

TENCENT MUSIC ENTERTAINMENT GROUP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended December 31

Year Ended December 31

2024

2025

2024

2025

RMB

US$

RMB

US$

Unaudited

(in millions)

Net cash provided by operating activities

2,480

2,391

342

10,275

10,231

1,463

Net cash provided by/(used in) investing activities

1,324

(5,129)

(733)

(6,818)

(10,227)

(1,462)

Net cash used in financing activities

(815)

(15)

(2)

(3,830)

(4,649)

(665)

Net increase/(decrease) in cash and cash equivalents

2,989

(2,753)

(394)

(373)

(4,645)

(664)

Cash and cash equivalents at beginning of the period/year

10,209

11,255

1,609

13,567

13,164

1,882

Exchange differences on cash and cash equivalents

(34)

(32)

(5)

(30)

(49)

(7)

Cash and cash equivalents at end of the period/year

13,164

8,470

1,211

13,164

8,470

1,211

SOURCE Tencent Music Entertainment Group