Tencent Music Entertainment Group (TME) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 22, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 20-F for FY2024, filed Apr 23, 2025. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the TME SEC filings page.
Tencent Music Entertainment Group (TME) reported $3.9B in revenue for fiscal year 2024, down 0.5% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 9 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Scored against operating companies for FY2024. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Tencent Music Entertainment Group's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Tencent Music Entertainment Group has an operating margin of 30.7%, meaning the company retains $31 of operating profit per $100 of revenue. This strong profitability earns a score of 81/100, reflecting efficient cost management and pricing power. This is up from 21.8% the prior year.
Tencent Music Entertainment Group's revenue declined 0.5% year-over-year, from $3.9B to $3.9B. This contraction results in a growth score of 22/100.
Tencent Music Entertainment Group's current ratio of 2.09 indicates adequate short-term liquidity, earning a score of 61/100. The company can meet its near-term obligations, though with limited headroom.
Tencent Music Entertainment Group converts 35.1% of revenue into free cash flow ($1.4B). This strong cash generation earns a score of 94/100.
Tencent Music Entertainment Group earns a strong 9.8% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 71/100. This is up from 8.8% the prior year.
Tencent Music Entertainment Group scores 4.14, well above the 2.99 safe threshold. The largest contribution to the score comes from a market capitalization of $14.0B against total liabilities of $2.8B. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Tencent Music Entertainment Group passes 5 of 7 computable financial strength tests (2 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 operating efficiency signals passes.
For every $1 of reported earnings, Tencent Music Entertainment Group generates $1.55 in operating cash flow ($1.4B OCF vs $910.2M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Tencent Music Entertainment Group earns $92.66 in operating income for every $1 of interest expense ($1.2B vs $12.9M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Tencent Music Entertainment Group generated $3.9B in revenue in fiscal year 2024. This represents a decrease of 0.5% from the prior year.
Tencent Music Entertainment Group's EBITDA was $1.3B in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 33.4% from the prior year.
Tencent Music Entertainment Group reported $910.2M in net income in fiscal year 2024. This represents an increase of 31.4% from the prior year.
Not reported for fiscal year 2024.
Cash & Balance Sheet
Tencent Music Entertainment Group generated $1.4B in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 35.0% from the prior year.
Tencent Music Entertainment Group held $1.8B in cash as of fiscal year 2024; no long-term debt figure is on record for that period.
Not reported for fiscal year 2024.
Margins & Returns
Tencent Music Entertainment Group's gross margin was 42.3% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 7.1 percentage points from the prior year.
Tencent Music Entertainment Group's operating margin was 30.7% in fiscal year 2024, reflecting core business profitability. This is up 8.8 percentage points from the prior year.
Tencent Music Entertainment Group's net profit margin was 23.4% in fiscal year 2024, showing the share of revenue converted to profit. This is up 5.7 percentage points from the prior year.
Tencent Music Entertainment Group's ROE was 9.8% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is up 1.0 percentage points from the prior year.
Capital Allocation
Tencent Music Entertainment Group invested $312.4M in research and development in fiscal year 2024. This represents a decrease of 12.2% from the prior year.
Tencent Music Entertainment Group invested $43.7M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 88.1% from the prior year.
Not reported for fiscal year 2024.
TME Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.9B-0.5% | $3.9B-4.9% | $4.1B-16.2% | $4.9B+9.7% | $4.5B+22.3% | $3.7B+32.3% | $2.8B+63.6% | $1.7B+168.7% | $628.1M |
| Cost of Revenue | $2.2B-11.3% | $2.5B-10.8% | $2.8B-17.2% | $3.4B+12.7% | $3.0B+26.4% | $2.4B+41.4% | $1.7B+54.5% | $1.1B+144.6% | $450.7M |
| Gross Profit | $1.6B+19.4% | $1.4B+8.5% | $1.3B-13.8% | $1.5B+3.5% | $1.4B+14.4% | $1.2B+17.7% | $1.1B+80.7% | $585.6M+230.0% | $177.4M |
| R&D Expenses | $312.4M-12.2% | $355.6M-4.9% | $374.1M+1.9% | $367.0M+43.7% | $255.5M+53.5% | $166.5M+22.2% | $136.3M+11.3% | $122.5M+89.4% | $64.7M |
| Operating Income | $1.2B+39.8% | $853.4M+32.5% | $644.2M+8.0% | $596.3M-17.4% | $721.8M+8.7% | $663.9M+123.9% | $296.6M+21.1% | $244.8M+1550.4% | $14.8M |
| EBITDA | $1.3B+33.4% | $994.8M+22.5% | $812.4M+7.8% | $753.4M-11.2% | $848.1M+13.4% | $747.7M+113.5% | $350.2M+15.6% | $303.1M+520.8% | $48.8M |
| Interest Expense | $12.9M-35.2% | $19.9M+26.8% | $15.7M-17.5% | $19.0M+27.7% | $14.9M+61.7% | $9.2M+80.6% | $5.1M | N/A | N/A |
| Income Tax | $219.6M+89.0% | $116.2M+50.1% | $77.4M+18.3% | $65.4M-6.4% | $69.9M-13.6% | $80.9M+225.2% | $24.9M-41.8% | $42.7M+923.0% | $4.2M |
| Net Income | $910.2M+31.4% | $693.0M+30.0% | $533.1M+12.2% | $475.3M-25.4% | $636.8M+11.3% | $572.0M+114.5% | $266.6M+30.8% | $203.8M+1625.6% | $11.8M |
| Diluted Shares (Avg) | 3.13B-1.2% | 3.17B-2.0% | 3.23B-3.8% | 3.36B+0.1% | 3.36B+0.4% | 3.35B+6.0% | 3.16B+19.7% | 2.64B+39.0% | 1.90B |
Not reported in any period shown, so not listed: SG&A Expenses, EPS (Basic), EPS (Diluted).
TME Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F |
|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $12.4B+16.5% | $10.6B+9.5% | $9.7B-7.9% | $10.6B+0.9% | $10.5B+38.3% | $7.6B+16.6% | $6.5B+40.7% | $4.6B | N/A |
| Current Assets | $4.7B+12.2% | $4.2B+9.5% | $3.9B-8.4% | $4.2B-13.4% | $4.9B+25.6% | $3.9B+27.9% | $3.0B+163.3% | $1.1B | N/A |
| Cash & Equivalents | $1.8B-5.6% | $1.9B+37.9% | $1.4B+33.9% | $1.0B-39.4% | $1.7B-23.0% | $2.2B-12.2% | $2.5B+217.4% | $795.2M+79.8% | $442.3M |
| Inventory | $3.2M+179.6% | $1.1M-44.5% | $2.0M-46.1% | $3.8M+36.5% | $2.8M-26.1% | $3.7M-26.6% | $5.1M+10.4% | $4.6M | N/A |
| Goodwill | $2.7B-2.2% | $2.8B-2.6% | $2.8B-5.8% | $3.0B+11.9% | $2.7B+8.9% | $2.5B-0.9% | $2.5B-0.6% | $2.5B+10.1% | $2.3B |
| Total Liabilities | $2.8B+9.9% | $2.6B-0.4% | $2.6B+2.0% | $2.5B+6.7% | $2.4B+84.2% | $1.3B+30.1% | $993.8M+67.9% | $592.0M | N/A |
| Current Liabilities | $2.3B+34.0% | $1.7B-0.4% | $1.7B+3.6% | $1.6B+11.4% | $1.5B+20.7% | $1.2B+34.4% | $907.3M+67.4% | $542.1M | N/A |
| Non-Current Liabilities | $571.0M-35.9% | $890.2M-0.4% | $893.8M-0.9% | $902.1M-0.9% | $910.3M+1142.7% | $73.3M-15.3% | $86.5M+73.2% | $50.0M | N/A |
| Long-Term Debt | N/A | $793.8M-1.1% | $802.6M+1.0% | $794.3M+0.2% | $793.1M | N/A | N/A | N/A | N/A |
| Total Equity | $9.3B+18.1% | $7.9B+12.9% | $7.0B-11.7% | $7.9B-1.4% | $8.0B+27.9% | $6.3B+14.1% | $5.5B+36.5% | $4.0B+35.2% | $3.0B |
| Retained Earnings | $2.7B+14.9% | $2.4B+36.8% | $1.7B-21.5% | $2.2B+30.8% | $1.7B+69.2% | $1.0B+127.6% | $442.1M+134.5% | $188.6M | N/A |
Not reported in any period shown, so not listed: Short-Term Investments, Accounts Receivable, Long-Term Investments.
TME Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F |
|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.4B+36.2% | $1.0B-4.7% | $1.1B+31.9% | $822.1M+9.8% | $748.7M-15.9% | $890.6M+8.7% | $819.1M+113.2% | $384.2M+205.6% | $125.7M |
| Depreciation & Amortization | $134.0M-5.3% | $141.4M-15.9% | $168.2M+7.1% | $157.1M+24.4% | $126.3M+50.8% | $83.7M+56.0% | $53.7M-7.9% | $58.3M+71.4% | $34.0M |
| Capital Expenditures | $43.7M+88.1% | $23.2M+88.6% | $12.3M-50.6% | $25.0M+50.7% | $16.6M+21.3% | $13.6M-28.9% | $19.2M+66.5% | $11.5M+95.2% | $5.9M |
| Free Cash Flow | $1.4B+35.0% | $1.0B-5.8% | $1.1B+34.5% | $797.2M+8.9% | $732.1M-16.5% | $876.9M+9.6% | $799.9M+114.6% | $372.7M+211.0% | $119.8M |
| Investing Cash Flow | -$934.1Mn/m | -$262.4Mn/m | -$209.7Mn/m | -$941.4Mn/m | -$2.2Bn/m | -$1.2Bn/m | -$173.1Mn/m | -$74.2M-203.9% | $71.4M |
| Financing Cash Flow | -$524.7Mn/m | -$216.6Mn/m | -$495.7Mn/m | -$582.2M-171.8% | $811.0Mn/m | -$4.5M-100.4% | $1.1B+7299.3% | $15.2M-93.8% | $246.6M |
| Dividends Paid | $206.6M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Stock-Based Compensation, Share Buybacks.
TME Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.3%+7.1pp | 35.3%+4.3pp | 31.0%+0.9pp | 30.1%-1.8pp | 31.9%-2.2pp | 34.1%-4.2pp | 38.3%+3.6pp | 34.7%+6.5pp | 28.2% |
| Operating Margin | 30.7%+8.8pp | 21.8%+6.2pp | 15.7%+3.5pp | 12.2%-4.0pp | 16.2%-2.0pp | 18.2%+7.4pp | 10.7%-3.8pp | 14.5%+12.2pp | 2.4% |
| Net Margin | 23.4%+5.7pp | 17.7%+4.8pp | 13.0%+3.3pp | 9.7%-4.6pp | 14.2%-1.4pp | 15.7%+6.0pp | 9.7%-2.4pp | 12.1%+10.2pp | 1.9% |
| Return on Equity | 9.8%+1.0pp | 8.8%+1.2pp | 7.6%+1.6pp | 6.0%-1.9pp | 8.0%-1.2pp | 9.1%+4.3pp | 4.9%-0.2pp | 5.1%+4.7pp | 0.4% |
| Return on Assets | 7.3%+0.8pp | 6.5%+1.0pp | 5.5%+1.0pp | 4.5%-1.6pp | 6.1%-1.5pp | 7.6%+3.5pp | 4.1%-0.3pp | 4.4% | N/A |
| Current Ratio | 2.09-0.4x | 2.49+0.2x | 2.27-0.3x | 2.56-0.7x | 3.30+0.1x | 3.17-0.2x | 3.33+1.2x | 2.12 | N/A |
| Debt-to-Equity | N/A | 0.100.0x | 0.120.0x | 0.100.0x | 0.10 | N/A | N/A | N/A | N/A |
| Liabilities-to-Equity | 0.310.0x | 0.330.0x | 0.370.0x | 0.320.0x | 0.30+0.1x | 0.210.0x | 0.180.0x | 0.15 | N/A |
| Asset Turnover | 0.31-0.1x | 0.37-0.1x | 0.420.0x | 0.460.0x | 0.43-0.1x | 0.48+0.1x | 0.43+0.1x | 0.37 | N/A |
| FCF Margin | 35.1%+9.2pp | 25.8%-0.3pp | 26.1%+9.8pp | 16.3%-0.1pp | 16.4%-7.6pp | 24.0%-5.0pp | 29.0%+6.9pp | 22.1%+3.0pp | 19.1% |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Tencent Music Entertainment Group TME | FY2024 | $3.9B | $910.2M | 23.4% | $14.0B | 66/100 |
| Baidu, Inc. BIDU | FY2025 | $18.5B | $799.2M | 4.3% | $26.8B | 33/100 |
| Reddit RDDT | FY2025 | $2.2B | $529.7M | 24.1% | $29.5B | 67/100 |
| Pinterest, Inc. PINS | FY2025 | $4.2B | $416.9M | 9.9% | $13.0B | 73/100 |
| Zillow Group, Inc. Z | FY2025 | $2.6B | $23.0M | 0.9% | $7.0B | 57/100 |
| ZILLOW GROUP INC ZG | FY2025 | $2.6B | $23.0M | 0.9% | $7.3B | 57/100 |
Where Tencent Music Entertainment Group Ranks
Frequently Asked Questions
What is Tencent Music Entertainment Group's annual revenue?
Tencent Music Entertainment Group (TME) reported $3.9B in total revenue for fiscal year 2024. This represents a -0.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Tencent Music Entertainment Group's revenue growing?
Tencent Music Entertainment Group (TME) revenue declined by 0.5% year-over-year, from $3.9B to $3.9B in fiscal year 2024.
Is Tencent Music Entertainment Group profitable?
Yes, Tencent Music Entertainment Group (TME) reported a net income of $910.2M in fiscal year 2024, with a net profit margin of 23.4%.
What is Tencent Music Entertainment Group's EBITDA?
Tencent Music Entertainment Group (TME) had EBITDA of $1.3B in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
What is Tencent Music Entertainment Group's gross margin?
Tencent Music Entertainment Group (TME) had a gross margin of 42.3% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Tencent Music Entertainment Group's operating margin?
Tencent Music Entertainment Group (TME) had an operating margin of 30.7% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Tencent Music Entertainment Group's net profit margin?
Tencent Music Entertainment Group (TME) had a net profit margin of 23.4% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Tencent Music Entertainment Group's return on equity (ROE)?
Tencent Music Entertainment Group (TME) has a return on equity of 9.8% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Tencent Music Entertainment Group's free cash flow?
Tencent Music Entertainment Group (TME) generated $1.4B in free cash flow during fiscal year 2024. This represents a 35.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Tencent Music Entertainment Group's operating cash flow?
Tencent Music Entertainment Group (TME) generated $1.4B in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Tencent Music Entertainment Group's total assets?
Tencent Music Entertainment Group (TME) had $12.4B in total assets as of fiscal year 2024, including both current and long-term assets.
What are Tencent Music Entertainment Group's capital expenditures?
Tencent Music Entertainment Group (TME) invested $43.7M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Tencent Music Entertainment Group spend on research and development?
Tencent Music Entertainment Group (TME) invested $312.4M in research and development during fiscal year 2024.
What is Tencent Music Entertainment Group's current ratio?
Tencent Music Entertainment Group (TME) had a current ratio of 2.09 as of fiscal year 2024, which is generally considered healthy.
What is Tencent Music Entertainment Group's liabilities-to-equity ratio?
Tencent Music Entertainment Group (TME) had a liabilities-to-equity ratio of 0.31 as of fiscal year 2024, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity. No debt-to-equity ratio is shown for fiscal year 2024, because the filing data we hold for that year carries no long-term debt figure.
What is Tencent Music Entertainment Group's return on assets (ROA)?
Tencent Music Entertainment Group (TME) had a return on assets of 7.3% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Tencent Music Entertainment Group's P/E ratio?
Tencent Music Entertainment Group (TME) trades at 15.4x earnings, its market capitalization divided by $910.2M net income, FY2024. The market capitalization is $14.0B as of Oct 22, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Tencent Music Entertainment Group's price-to-sales ratio?
Tencent Music Entertainment Group (TME) trades at 3.6x sales, its market capitalization divided by $3.9B revenue, FY2024. The market capitalization is $14.0B as of Oct 22, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Tencent Music Entertainment Group's Altman Z-Score?
Tencent Music Entertainment Group (TME) has an Altman Z-Score of 4.14, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Tencent Music Entertainment Group's Piotroski F-Score?
Tencent Music Entertainment Group (TME) has a Piotroski F-Score of 5 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Tencent Music Entertainment Group's earnings high quality?
Tencent Music Entertainment Group (TME) has an earnings quality ratio of 1.55x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Tencent Music Entertainment Group cover its interest payments?
Tencent Music Entertainment Group (TME) has an interest coverage ratio of 92.66x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Tencent Music Entertainment Group?
Tencent Music Entertainment Group (TME) scores 66 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.