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Jun 30
Tencent Music Q2 2025 Earnings Report
Tencent Music reported strong growth in Q2 2025, driven by online music subscription gains, advertising, and artist merchandise sales.
Key Takeaways
Tencent Music Entertainment Group delivered solid revenue and net income growth in Q2 2025, supported by robust online music subscription expansion, higher ARPPU, and diversified revenue streams, despite a decline in social entertainment services revenue.
Total revenue rose 17.9% YoY to $1.18B
Online music services revenue grew 26.4% YoY to $957M
Net income attributable to equity holders reached $336M, up 43.2% YoY
Monthly ARPPU increased to RMB11.7 from RMB10.7 in Q2 2024
Tencent Music
Tencent Music
Tencent Music Revenue by Segment
Tencent Music Revenue by Geographic Location
Revenue by Segment
Online Music Services Revenue
CapyFin.comSocial Entertainment Revenue
CapyFin.comRevenue by Geographic Location
China Revenue
CapyFin.com Forward Guidance
Management expects continued growth driven by online music subscriptions, advertising, and artist-related merchandise, while investing in immersive experiences and expanding SVIP membership offerings.
Positive Outlook
- Strong growth in music subscription revenue
- Expansion of SVIP membership privileges
- Robust advertising revenue growth from new formats
- Increased partnerships with artists and record labels
- Successful launch of ad-based membership model
Challenges Ahead
- Decline in social entertainment services revenue
- Increased IP-related costs affecting margins
- Potential competitive pressure in music streaming market
- Foreign currency fluctuations could impact USD results
- Dependency on continued ARPPU growth for subscription gains
Revenue & Expenses
Visualization of income flow from segment revenue to net income