Tencent Music posts higher 2025 profit as online music revenue expands

Tencent Music reported a 2025 revenue of RMB 32.9 billion ($4.71 billion), up 15.8% YoY, with net profit rising 66.4% to RMB 11.06 billion ($1.58 billion). Online music revenue increased 22.9% to RMB 26.73 billion ($3.82 billion), accounting for 81.2% of total revenue. The company also declared a cash dividend of approximately $368 million.

Key Points

• Revenue for 2025: RMB 32.9 billion ($4.71 billion), +15.8% YoY.
• Net profit attributable to equityholders: RMB 11.06 billion ($1.58 billion), +66.4% YoY.
• Non-IFRS net profit: RMB 9.59 billion ($1.37 billion), +25% YoY.
• Online music services revenue: RMB 26.73 billion ($3.82 billion), +22.9%, 81.2% of total revenue.
• Music subscription revenue: RMB 17.66 billion ($2.53 billion), +16% YoY.
• Non-subscription music revenue: RMB 9.07 billion ($1.30 billion), +39.2%, driven by offline performances and ads.
• Paying users reached 127.4 million, +5.3% YoY.
• Annual cash dividend: approximately $368 million.

Relevance

• The growth in online music revenue reflects current IT trends of increasing digitalization and online entertainment consumption.
• The rise in music subscription can be linked to broader trends in consumer behavior towards subscription-based services across various sectors.
• Tencent's success may correlate with ongoing developments in AI technologies enhancing music personalization and user experience.
• This growth highlights how digital platforms continue to play a crucial role in the entertainment industry, aligning with predicted shifts towards online content in 2025.

Tencent Music's strong financial performance in 2025 reflects the growing demand for online music services and highlights the shift in consumer preferences towards digital subscriptions, foreshadowing a continued evolution in the entertainment landscape.