Tencent Music Entertainment Group Announces First Quarter 2026 Unaudited Financial Results

Rhea-AI Summary

Tencent Music (NYSE:TME) reported unaudited Q1 2026 results with total revenue of RMB7.90 billion, up 7.3% year-over-year. Music related services grew 12.2% to RMB6.51 billion, while social entertainment revenue fell 11.0% to RMB1.38 billion.

Non-IFRS net profit attributable to equity holders rose 7.0% to RMB2.27 billion; adjusted EBITDA grew 10.5% to RMB2.83 billion. IFRS net profit attributable declined to RMB2.09 billion, mainly due to a prior-year disposal gain. Cash and investments reached RMB41.00 billion. A 2025 dividend of US$0.24 per ADS (US$370 million) was paid in April 2026.

Positive

• Total revenue rose 7.3% year-over-year to RMB7.90 billion
• Music related services revenue grew 12.2% to RMB6.51 billion
• Non-IFRS net profit attributable increased 7.0% to RMB2.27 billion
• Adjusted EBITDA rose 10.5% to RMB2.83 billion
• Gross margin improved to 44.9% from 44.1% year-over-year
• Cash, term deposits and short-term investments increased to RMB41.00 billion from RMB38.04 billion
• 2025 cash dividend of US$0.24 per ADS totaling US$370 million was paid

Negative

• Revenues from social entertainment services and others declined 11.0% to RMB1.38 billion
• IFRS net profit attributable fell to RMB2.09 billion from RMB4.29 billion year-over-year
• Selling and marketing expenses increased 36.2% year-over-year to RMB271 million
• Cost of revenues increased 5.7% year-over-year to RMB4.35 billion

News Market Reaction – TME

-1.31%

21 alerts

-1.31% Session close to close

+5.2% Peak in 10 min

$14.46B Market Cap

0.0x Rel. Volume

In the May 12 session, TME declined 1.31%, reflecting a mild negative market reaction. Argus tracked a peak move of +5.2% during that session. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights Q1 2026 revenue growth of 7.3%, strong expansion in music related servi...

Analysis

This announcement highlights Q1 2026 revenue growth of 7.3%, strong expansion in music related services, and rising non-IFRS profitability, supported by a sizeable RMB41.00 billion cash and investments balance. It follows earlier periods of robust earnings and capital returns, including cash dividends. Investors may focus on the divergence between IFRS and non-IFRS net profit, the sustainability of double-digit music revenue growth, and how competitive dynamics and content investments affect future margins and user monetization.

Key Figures

Total revenues: RMB7.90 billion (US$1.15 billion) Music related services revenue: RMB6.51 billion (US$944 million) Membership services revenue: RMB4.57 billion (US$662 million) +5 more

8 metrics

Total revenues RMB7.90 billion (US$1.15 billion) Q1 2026, 7.3% year-over-year increase

Music related services revenue RMB6.51 billion (US$944 million) Q1 2026, 12.2% year-over-year growth

Membership services revenue RMB4.57 billion (US$662 million) Q1 2026, 6.6% year-over-year growth

IFRS net profit attributable RMB2.09 billion (US$303 million) Q1 2026, lower than RMB4.29 billion in Q1 2025

Adjusted EBITDA RMB2.83 billion (US$410 million) Q1 2026, 10.5% year-over-year growth

Non-IFRS net profit attributable RMB2.27 billion (US$330 million) Q1 2026, 7.0% year-over-year growth

Cash and investments balance RMB41.00 billion (US$5.94 billion) As of March 31, 2026

2025 dividend US$0.24 per ADS (US$370 million total) Declared March 17, 2026, paid in April 2026

Previous Earnings Reports

5 past events · Latest: Mar 17 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 17	Q4/FY 2025 earnings	Positive	-24.6%	Strong Q4 and FY 2025 revenue and profit growth with dividend approval.
Nov 12	Q3 2025 earnings	Positive	-8.4%	Q3 2025 revenue and music services growth with higher margins and cash.
Aug 12	Q2 2025 earnings	Positive	+11.8%	Q2 2025 revenue and net profit growth with rising subscriptions and ARPPU.
May 13	Q1 2025 earnings	Positive	+2.5%	Q1 2025 revenue increase and large net profit jump aided by disposal gain.
Mar 18	Q4/FY 2024 earnings	Positive	+15.5%	Q4 2024 revenue and profit growth with dividend and buyback program.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases are generally positive, but price reactions have been mixed with both strong rallies and sharp sell-offs.

Recent Company History

Over the past few earnings cycles, Tencent Music reported consistent revenue and profit growth, highlighted by strong quarters in 2024–2025 and expanding music subscription and SVIP monetization. Cash and short-term investments steadily increased, and the company complemented results with dividends and buybacks. Despite this, price reactions ranged from double-digit gains (e.g., Nov 12, 2025, Mar 18, 2025) to a sharp selloff on Mar 17, 2026. Today’s Q1 2026 report fits the pattern of fundamentally solid earnings within a volatile trading history.

Key Terms

ifrs, non-ifrs, adjusted ebitda, ads, +4 more

8 terms

ifrs financial

"On an IFRS basis: Net profit attributable to equity holders of the Company..."

International Financial Reporting Standards (IFRS) are a set of common accounting rules used by many companies worldwide to prepare financial statements, so numbers like revenue, profit and assets are measured in the same way across borders. For investors, IFRS matters because it makes it easier to compare the financial health and performance of different companies—like using the same ruler to measure different objects—reducing surprises and helping informed investment decisions.

non-ifrs financial

"On a non-IFRS basis: Adjusted EBITDA[3] was RMB2.83 billion..."

Non-IFRS refers to financial measures that companies report outside the standard accounting rules set by the International Financial Reporting Standards; these figures exclude or adjust certain items such as one-time costs, stock-based pay, or restructuring charges. Investors care because non-IFRS numbers try to show the business’s underlying performance — like a chef presenting a dish with optional toppings removed to highlight the core flavor — but they can be shaped to look more favorable, so compare them with the official IFRS statements.

adjusted ebitda financial

"Adjusted EBITDA[3] was RMB2.83 billion (US$410 million)..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

ads financial

"Diluted earnings per ADS was RMB1.34 (US$0.19)..."

Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.

esg financial

"Environmental, Social, and Governance ("ESG") On April 20, 2026, we released our 2025 ESG Report..."

ESG stands for Environmental, Social, and Governance, which are key factors investors consider when evaluating how sustainable and responsible a company is. It involves assessing how a company manages its impact on the environment, treats its employees and communities, and operates transparently and ethically. Investors use ESG criteria to identify businesses that align with their values and have the potential for long-term success.

share-based compensation financial

"Adjusted EBITDA for the period represents net profit... excluding ... share-based compensation expenses."

Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.

h.10 statistical release regulatory

"the noon buying rate in effect on March 31, 2026, in the H.10 statistical release..."

The H.10 statistical release is a regularly published table of key interest rates — such as short-term Treasury yields, commercial paper, and interbank borrowing costs — compiled by the central bank. It gives a snapshot of borrowing and lending rates across different maturities, which investors use like a weather report for the credit markets: changes can alter borrowing costs, bond prices, and expected returns, so it helps assess market conditions and value assets.

non-ifrs net profit financial

"Non-IFRS net profit for the period represents profit for the period excluding amortization..."

Non-IFRS net profit is a company's profit figure adjusted by management to exclude certain items that standard international accounting rules (IFRS) would normally include, such as one-time charges, stock-based pay, or restructuring costs. Investors look at it as a way to see the company’s recurring or operational earnings — like checking a car’s regular running costs while ignoring a single big repair — but it can vary by company and may be used to present a rosier picture than standard accounting shows.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHENZHEN, China, May 12, 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 first quarter ended March 31, 2026.

First Quarter 2026 Financial Highlights

• Total revenues were RMB7.90 billion (US$1.15 billion), representing a 7.3% year-over-year increase, primarily due to strong growth in revenues from music related services^[1].
• Revenues from music related services^[1] were RMB6.51 billion (US$944 million), representing 12.2% year-over-year growth. Revenues from membership services^[2] were RMB4.57 billion (US$662 million), representing 6.6% year-over-year growth. Revenues from music related services other than membership services were RMB1.94 billion (US$282 million), representing 28.0% year-over-year growth.
• On an IFRS basis:
  • Net profit attributable to equity holders of the Company was RMB2.09 billion (US$303 million), compared with RMB4.29 billion in the same period of 2025, as the Company has recognized a gain of RMB2.37 billion on deemed disposal of an associate in the first quarter of 2025.
  • Diluted earnings per ADS was RMB1.34 (US$0.19), compared with RMB2.77 in the same period of 2025.
• On a non-IFRS basis:
  • Adjusted EBITDA^[3] was RMB2.83 billion (US$410 million), representing 10.5% year-over-year growth.
  • Non-IFRS net profit attributable to equity holders of the Company^[3] was RMB2.27 billion (US$330 million), representing 7.0% year-over-year growth.
  • Non-IFRS diluted earnings per ADS was RMB1.46 (US$0.21), up from RMB1.37 in the same period of 2025.
• Total cash, cash equivalents, term deposits and short-term investments as of March 31, 2026 were RMB41.00 billion (US$5.94 billion).

Mr. Cussion Pang, Executive Chairman of TME, commented, "This quarter's steady results reflect the effectiveness of our holistic approach to the music ecosystem. By expanding how we serve and engage our audience, we have built a more diversified and resilient model, supported by continued strong growth beyond membership services in our music related business. While AI is broadening participation in content creation, it does not replace human creativity and, in many ways, reinforces the scarcity and intrinsic value of premium IP—which remains central to deeper engagement and greater wallet share. Rooted in strong copyright protection, we are committed to channeling this value to elevate the creative economy, unlock new opportunities across the music industry, and drive enduring long-term value."

Mr. Ross Liang, CEO of TME, continued, "As we operate in an increasingly competitive landscape, we remain focused on strengthening the resilience of our platform. Anchored by our content-and-platform dual engine, we continue to bolster differentiation, drive engagement, and expand user lifetime value. Leveraging Tencent's ecosystem, we are broadening user reach and deepening penetration, while advancing a tiered subscription strategy to better address diverse user needs. During the quarter, we delivered continued improvement in SVIP adoption and user engagement. Together, these initiatives position us to compete effectively while driving scalable growth and durable monetization over time."

First Quarter 2026 Operational Highlights

CONTENT – To unlock long-term value, we continued to invest in premium IP to drive differentiation and engagement, while leveraging AI to enrich content creation and improve efficiency.

• Strengthened our premium evergreen catalog by renewing key label partnerships, including JVR Music, Linfair Records, and MOK-A-BYE BABY MUSIC LTD., securing access to iconic artists such as Jay Chou, Karen Mok, Harlem Yu, and Angela Zhang^[4]. We also deepened our strategic partnership with TF Entertainment through 30-day early release windows and expanded physical collaboration, reinforcing our content leadership and competitive differentiation.
• Captured more user mindshare with our proprietary content. High-impact releases—including Zhou Shen's chart-topping theme song for Sony Pictures' Project Hail Mary—collectively drove incremental streams across our self-produced catalog and further enhanced its visibility.
• Harnessed AI to enhance production efficiency and revitalize classic IP. Our AI tools empower creators by lowering production barriers and accelerating workflows, effectively increasing content supply, with AI-generated songs accounting for a growing share of daily new releases. High-quality, authorized AI covers reintroduce classic works to new audiences and drive incremental engagement with original tracks.

PLATFORM – Sustained our user base through a multi-pronged approach and advanced a multi-tiered monetization strategy, including new offerings to capture demand for super-premium music experiences.

• Recently stepped up collaboration with the Tencent's Weixin Video Account to create a seamless funnel that converts casual background music (BGM) discovery into high-quality music streaming, enabling us to strengthen user base and drive incremental traffic.
• To better engage casual listeners, we diversified touchpoints across the platform. Combined with AI-driven recommendations with interactive features, these initiatives encourage users to favorite tracks and curate playlists, fostering the accumulation of personal music assets.
• SVIP membership continued to see solid adoption and engagement. To enhance its appeal, we appointed major artists such as Ryan Ding, Ju Jingyi, Liu Yuning, JC-T, and Karry Wang as ambassadors for a variety of collaborations. We also introduced tailored collections for leading K-pop artists such as BLACKPINK, EXO, and IVE, combining digital albums with physical collectibles including NFC cards.
• To meet demand for super-premium experiences, we launched our inaugural Fan Club membership with Silence Wang, integrating priority ticketing and exclusive merchandise to further enrich the fan experience.

IP-VALUE – Adopted a holistic, pan-IP approach to amplify music influence, simultaneously boosting user reach, engagement, and wallet share.

• Extended the IP value chain and unlocked commercial value through innovative virtual and physical offerings. A prime example is our strengthened partnership with Jay Chou for his digital album, Children of the Sun where combined digital and physical benefits drove strong engagement and generated over RMB100 million in sales.
• Achieved triple-digit year-over-year growth in revenues related to live performance while growing our IP's global footprint. We hosted flagship concerts with leading K-pop groups, including BABYMONSTER's concerts in Taiwan, China, and NCT WISH's concerts in Hong Kong, China, and elevated strategic artists such as Will Pan, Silence Wang, Tia Ray, Angela Zhang, Jane Zhang, Zhang Yuan, and GAI onto prominent domestic and international stages, enhancing their global reach and commercial value.

First Quarter 2026 Financial Review

Total revenues increased by RMB539 million, or 7.3%, to RMB7.90 billion (US$1.15 billion) from RMB7.36 billion in the same period of 2025.

• Revenues from music related services increased by 12.2% to RMB6.51 billion (US$944 million), compared with RMB5.80 billion in the same period of 2025. The increase was driven by solid growth in revenues from membership services and offline performances related services, supplemented by growth in revenues from advertising services. Revenues from membership services were RMB4.57 billion (US$662 million), representing 6.6% year-over-year growth, compared with RMB4.28 billion in the same period of 2025. The growth was mainly driven by our continuous expansion of SVIP membership privileges, such as early access to offline performances and artist-related merchandise, and the launch of other new membership programs, such as bubble, WeverseDM, and fan-club membership. Revenues from offline performances related services achieved robust year-over-year growth. We successfully staged several successful concerts for our strategically collaborated local and Korean artists across domestic and overseas markets. The year-over-year increase in revenues from advertising services was primarily due to our more diversified product portfolio and innovative ad formats, such as ad-supported mode.
• Revenues from social entertainment services and others decreased by 11.0% to RMB1.38 billion (US$200 million) from RMB1.55 billion in the same period of 2025.

Cost of revenues increased by 5.7% year-over-year to RMB4.35 billion (US$630 million), mainly due to increased costs related to offline performances, advertising services and other IP related services. Meanwhile, revenue sharing fees decreased, resulting from declines in both revenue sharing ratio and revenues from social entertainment services. 

Gross margin increased to 44.9% from 44.1% in the same period of 2025, primarily due to increase in revenues from membership services, along with decreased channel fee.

Total operating expenses increased by 5.9% year-over-year to RMB1.21 billion (US$176 million). Operating expenses as a percentage of total revenues decreased to 15.3% from 15.5% in the same period of 2025. 

• Selling and marketing expenses were RMB271 million (US$39 million), representing a 36.2% year-over-year increase. The increase was primarily due to higher channel spending and content promotion expenses.
• General and administrative expenses were RMB940 million (US$136 million), and remained relatively stable compared with the same period of 2025.

On an IFRS basis, net profit and net profit attributable to equity holders of the Company for the first quarter of 2026 were RMB2.14 billion (US$310 million) and RMB2.09 billion (US$303 million), respectively. Basic and diluted earnings per American Depositary Shares ("ADS") for the first quarter of 2026 were RMB1.36 (US$0.20) and RMB1.34 (US$0.19), respectively. 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.

On a non-IFRS basis, adjusted EBITDA for the first quarter of 2026 were RMB2.83 billion (US$410 million). Non-IFRS net profit was RMB2.33 billion (US$338 million) and non-IFRS net profit attributable to equity holders of the Company was RMB2.27 billion (US$330 million). Non-IFRS basic and diluted earnings per ADS were RMB1.48 (US$0.21) and RMB1.46 (US$0.21), respectively. Please refer to the section in this press release titled "Non-IFRS Financial Measures" for details.

As of March 31, 2026, the combined balance of the Company's cash, cash equivalents, term deposits and short-term investments amounted to RMB41.00 billion (US$5.94 billion), compared with RMB38.04 billion as of December 31, 2025. 

Declaration and Payment of 2025 Dividend

On March 17, 2026, the Company's board of directors declared a cash dividend of US$0.12 per ordinary share, or US$0.24 per ADS, for the year ended December 31, 2025, to holders of record of ordinary shares and ADSs as of the close of business on April 2, 2026. The payment for the cash dividend of US$370 million was made in April 2026.

Environmental, Social, and Governance ("ESG")

On April 20, 2026, we released our 2025 ESG Report, detailing our progress in empowering creators, promoting digital inclusion, and driving sustainability across our value chain. These initiatives have strengthened our ecosystem's resilience, leading to improved ESG ratings and broader recognition from our stakeholders.

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 RMB6.8980 to US$1.00, the noon buying rate in effect on March 31, 2026, 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 Measures 

The Company uses non-IFRS financial measures for the period, including non-IFRS net profit, adjusted EBITDA(inc.SBC) and adjusted EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS financial measures help 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 financial measures for the period provide 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 financial measures 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 financial measures for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS financial measures 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. 

Adjusted EBITDA(inc.SBC) for the period represents net profit for the period excluding income tax expense, finance cost, share of profit/loss of associates and joint ventures, other gains/losses, interest income, depreciation of property, plant and equipment and right-of-use assets, and amortization of intangible assets. 

Adjusted EBITDA for the period represents net profit for the period excluding income tax expense, finance cost, share of profit/loss of associates and joint ventures, other gains/losses, interest income, depreciation of property, plant and equipment and right-of-use assets, amortization of intangible assets, and share-based compensation expenses. 

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 Measures" included in this press release for a full reconciliation of adjusted EBITDA(inc.SBC), adjusted EBITDA and non-IFRS net profit for the period to its net profit for the period.

[1] Starting from the first quarter of 2026, "online music services" has been renamed to "music related services" to better reflect the nature of our businesses included in this business line. Such change does not affect the amounts of our historical revenue or its accounting treatment.

[2] As part of music related services, membership services primarily consist of membership fees paid for membership benefits and privileges, including access to music and audio content, and other benefits and privileges within music related services. Revenues from membership services for each quarter of 2025 were RMB4,284 million, RMB4,434 million, RMB4,564 million and RMB4,625 million, respectively.

[3] See the sections entitled "Non-IFRS Financial Measures" and "Unaudited Non-IFRS Financial Measures" for more information about the non-IFRS measures referred to within this announcement.

[4] 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
ir@tencentmusic.com  
+86 (755) 8601-3388 ext. 885034

 

 

	TENCENT MUSIC ENTERTAINMENT GROUP
	CONSOLIDATED INCOME STATEMENTS
				Three Months Ended March 31
				2025		2026
				RMB		RMB		US$
				Unaudited		Unaudited		Unaudited
				(in millions, except per share data)
	Revenues
	Music related services*			5,804		6,514		944
	Social entertainment services and others			1,552		1,381		200
				7,356		7,895		1,145
	Cost of revenues			(4,114)		(4,349)		(630)
	Gross profit			3,242		3,546		514
	Selling and marketing expenses			(199)		(271)		(39)
	General and administrative expenses			(944)		(940)		(136)
	Total operating expenses			(1,143)		(1,211)		(176)
	Interest income			297		246		36
	Other gains, net			2,440		66		10
	Operating profit			4,836		2,647		384
	Share of net profit/(loss) of investments accounted for using equity method			23		(7)		(1)
	Finance cost			(25)		(46)		(7)
	Profit before income tax			4,834		2,594		376
	Income tax expense			(446)		(457)		(66)
	Profit for the period			4,388		2,137		310
	Attributable to:
	Equity holders of the Company			4,291		2,091		303
	Non-controlling interests			97		46		7
	Earnings per share for Class A and Class B ordinary shares
	Basic			1.40		0.68		0.10
	Diluted			1.39		0.67		0.10
	Earnings per ADS (2 Class A shares equal to 1 ADS)
	Basic			2.81		1.36		0.20
	Diluted			2.77		1.34		0.19
	Shares used in earnings per Class A and Class B ordinary share computation:
	Basic			3,054,522,173		3,081,340,243		3,081,340,243
	Diluted			3,093,008,542		3,111,369,968		3,111,369,968
	ADS used in earnings per ADS computation
	Basic			1,527,261,087		1,540,670,122		1,540,670,122
	Diluted			1,546,504,271		1,555,684,984		1,555,684,984
	* Starting from the first quarter of 2026, "online music services" has been renamed to "music related services" to better reflect the nature of our businesses included in this business line. Such change does not affect the amounts of our historical revenue or its accounting treatment.

 

 

 

	TENCENT MUSIC ENTERTAINMENT GROUP
	UNAUDITED NON-IFRS FINANCIAL MEASURES
				Three Months Ended March 31
				2025		2026
				RMB		RMB		US$
				Unaudited		Unaudited		Unaudited
				(in millions, except per share data)
	Profit for the period			4,388		2,137		310
	Adjustments:
	Income tax expense			446		457		66
	Finance cost			25		46		7
	Share of net (profit)/loss of investments accounted for using equity method			(23)		7		1
	Operating profit			4,836		2,647		384
	Other gains, net			(2,440)		(66)		(10)
	Interest income			(297)		(246)		(36)
	Depreciation of property, plant and equipment and right-of-use assets			38		35		5
	Amortisation of intangible assets			275		298		43
	Adjusted EBITDA(inc. SBC)			2,412		2,668		387
	Share-based compensation			150		163		24
	Adjusted EBITDA			2,562		2,831		410
	Profit for the period			4,388		2,137		310
	Adjustments:
	Amortization of intangible and other assets arising from business acquisitions or combinations*			105		89		13
	Share-based compensation			161		163		24
	Gains from investments**			(2,375)		(2)		-
	Income tax effects***			(53)		(54)		(8)
	Non-IFRS Net Profit			2,226		2,333		338
	Attributable to:
	Equity holders of the Company			2,124		2,273		330
	Non-controlling interests			102		60		9
	Earnings per share for Class A and Class B ordinary shares
	Basic			0.70		0.74		0.11
	Diluted			0.69		0.73		0.11
	Earnings per ADS (2 Class A shares equal to 1 ADS)
	Basic			1.39		1.48		0.21
	Diluted			1.37		1.46		0.21
	Shares used in earnings per Class A and Class B ordinary share computation:
	Basic			3,054,522,173		3,081,340,243		3,081,340,243
	Diluted			3,093,008,542		3,111,369,968		3,111,369,968
	ADS used in earnings per ADS computation
	Basic			1,527,261,087		1,540,670,122		1,540,670,122
	Diluted			1,546,504,271		1,555,684,984		1,555,684,984
	* 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, 2025		As at March 31, 2026
		RMB		RMB		US$
		Audited		Unaudited		Unaudited
		(in millions)
ASSETS
Non-current assets
Property, plant and equipment		1,201		1,301		189
Land use rights		2,290		2,272		329
Right-of-use assets		287		272		39
Intangible assets		2,899		2,770		402
Goodwill		20,521		20,528		2,976
Investments accounted for using equity method		1,659		2,593		376
Financial assets at fair value through other comprehensive income		26,231		19,866		2,880
Other investments		303		299		43
Prepayments, deposits and other assets		365		418		61
Deferred tax assets		498		535		78
Term deposits		13,810		14,330		2,077
		70,064		65,184		9,450
Current assets
Inventories		41		48		7
Accounts receivable		3,903		3,825		555
Prepayments, deposits and other assets		4,183		4,036		585
Other investments		83		73		11
Term deposits		15,763		8,254		1,197
Restricted Cash		15		15		2
Cash and cash equivalents		8,470		18,416		2,670
		32,458		34,667		5,026
Total assets		102,522		99,851		14,475
EQUITY
Equity attributable to equity holders of the Company
Share capital		2		2		0
Additional paid-in capital		29,919		30,020		4,352
Shares held for share award schemes		(801)		(821)		(119)
Treasury shares		(664)		(664)		(96)
Other reserves		22,450		17,156		2,487
Retained earnings		29,381		28,647		4,153
		80,287		74,340		10,777
Non-controlling interests		2,763		2,790		404
Total equity		83,050		77,130		11,182
LIABILITIES
Non-current liabilities
Borrowings		-		1,100		159
Notes payables		3,497		3,443		499
Other payables and other liabilities		379		425		62
Deferred tax liabilities		504		588		85
Lease liabilities		200		188		27
Deferred revenue		303		356		52
		4,883		6,100		884
Current liabilities
Accounts payable		6,284		6,176		895
Other payables and other liabilities		3,558		5,460		792
Current tax liabilities		1,092		1,059		154
Lease liabilities		116		111		16
Deferred revenue		3,539		3,815		553
		14,589		16,621		2,410
Total liabilities		19,472		22,721		3,294
Total equity and liabilities		102,522		99,851		14,475

 

 

TENCENT MUSIC ENTERTAINMENT GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Three Months Ended March 31
		2025		2026
		RMB		RMB		US$
		Unaudited		Unaudited		Unaudited
		(in millions)
Net cash provided by operating activities		2,519		2,332		338
Net cash (used in)/provided by investing activities		(3,221)		6,650		964
Net cash (used in)/provided by financing activities		(456)		1,011		147
Net (decrease)/increase in cash and cash equivalents		(1,158)		9,993		1,449
Cash and cash equivalents at beginning of the period		13,164		8,470		1,228
Exchange differences on cash and cash equivalents		16		(47)		(7)
Cash and cash equivalents at end of the period		12,022		18,416		2,670

 

 

 

View original content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-first-quarter-2026-unaudited-financial-results-302769323.html

SOURCE Tencent Music Entertainment Group

FAQ

How did Tencent Music (TME) perform in Q1 2026 in terms of revenue?

Tencent Music reported Q1 2026 revenue of RMB7.90 billion, a 7.3% year-over-year increase. According to Tencent Music, growth was mainly driven by music related services, including membership, offline performance related services, and advertising, partly offset by lower social entertainment revenues.

What were Tencent Music’s Q1 2026 profits and EPS (NYSE:TME)?

In Q1 2026, Tencent Music’s IFRS net profit attributable was RMB2.09 billion, while non-IFRS net profit attributable reached RMB2.27 billion. According to Tencent Music, non-IFRS diluted earnings per ADS were RMB1.46 (US$0.21), up from RMB1.37 a year earlier.

How did Tencent Music’s music related services segment perform in Q1 2026?

Tencent Music’s music related services revenue rose 12.2% year-over-year to RMB6.51 billion in Q1 2026. According to Tencent Music, membership services revenue grew 6.6% to RMB4.57 billion, supported by expanded SVIP privileges, new membership programs, and robust offline performance related services growth.

Why did Tencent Music’s social entertainment revenue decline in Q1 2026?

Tencent Music’s social entertainment services and others revenue declined 11.0% year-over-year to RMB1.38 billion in Q1 2026. According to Tencent Music, cost structures also shifted, with lower revenue sharing fees reflecting declines in both revenue sharing ratio and social entertainment revenues.

What dividend did Tencent Music (TME) pay for 2025 and when was it distributed?

Tencent Music’s board declared a 2025 cash dividend of US$0.12 per ordinary share, or US$0.24 per ADS. According to Tencent Music, the dividend totaled about US$370 million and was paid in April 2026 to shareholders of record on April 2, 2026.

What was Tencent Music’s cash and investment position as of March 31, 2026?

As of March 31, 2026, Tencent Music held RMB41.00 billion in cash, cash equivalents, term deposits and short-term investments. According to Tencent Music, this compares with RMB38.04 billion at December 31, 2025, indicating a stronger liquidity position entering the remainder of 2026.

How did Tencent Music’s margins and expenses change in Q1 2026?

Tencent Music’s Q1 2026 gross margin improved to 44.9%, up from 44.1% a year earlier. According to Tencent Music, cost of revenues rose 5.7% to RMB4.35 billion, while selling and marketing expenses increased 36.2% to RMB271 million, partly due to higher channel and promotion spending.