Tencent Music (TME) Stock Rises 6% After Revenue Beat in Q4 2025

TLDR

• Total Q4 2025 revenue rose 15.9% YoY to RMB8.64 billion, beating analyst estimates of RMB8.44 billion
• Online music services revenue surged 21.7% to RMB7.10 billion, with non-subscription revenue up 40.8%
• Adjusted EPS of RMB1.41 missed the consensus estimate of RMB1.54
• Online music paying users grew 5.3% YoY to 127.4 million; SVIP subscribers topped 20 million
• Full-year 2025 adjusted net profit jumped 25% to RMB9.59 billion; board declared a ~$368 million annual dividend

Tencent Music Entertainment (TME) posted a mixed Q4 2025 report on Tuesday — revenue beat Wall Street expectations, but earnings came up short of forecasts.

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.

Full-Year 2025 Results

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.

Dividend and Analyst View

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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