Tencent Music Entertainment Group Announces Fourth Quarter and Full-Year 2025 Unaudited Financial Results
Rhea-AI Summary
Tencent Music Entertainment Group (NYSE: TME) reported strong Q4 and full-year 2025 results: Q4 revenue RMB8.64bn (+15.9% YoY) and FY revenue RMB32.90bn (+15.8% YoY). Q4 online music revenue rose 21.7% to RMB7.10bn; FY net profit attributable was RMB11.06bn (+66.4%), partly due to a RMB2.37bn one-time gain. The board approved an annual cash dividend of ~US$368m. SVIP subscribers surpassed 20 million; cash and short-term investments totaled RMB38.04bn as of Dec 31, 2025.
Positive
- Q4 total revenue up 15.9% YoY to RMB8.64 billion
- Q4 online music revenue up 21.7% YoY to RMB7.10 billion
- FY total revenue up 15.8% YoY to RMB32.90 billion
- FY net profit attributable RMB11.06 billion (+66.4% YoY)
- SVIP subscriber base exceeded 20 million by year-end 2025
- Cash, equivalents and short-term investments of RMB38.04 billion
Negative
- Cost of revenues increased 13.7% YoY in Q4 2025 to RMB4.78 billion
- Full-year net profit uplift partly driven by a RMB2.37 billion one-time deemed disposal gain
- Monthly active users for online music declined 5.0% YoY to 528 million in Q4 2025
News Market Reaction – TME
On the day this news was published, TME declined 24.65%, reflecting a significant negative market reaction. Argus tracked a trough of -28.9% from its starting point during tracking. Our momentum scanner triggered 125 alerts that day, indicating very high trading interest and price volatility. This price movement removed approximately $7.65B from the company's valuation, bringing the market cap to $23.37B at that time. Trading volume was exceptionally heavy at 10.3x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peer momentum data flags a sector move with TME and 2 peers trending down in the scanner (median move about -1.3%), while broader internet peers in the same industry showed mixed individual moves.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Q3 2025 earnings | Positive | -8.4% | Strong Q3 2025 revenue and profit growth from online music services. |
| Aug 12 | Q2 2025 earnings | Positive | +11.8% | Robust Q2 revenue, profit and subscription gains with higher ARPPU. |
| May 13 | Q1 2025 earnings | Positive | +2.5% | Q1 revenue growth and profit surge helped by investment disposal gain. |
| Mar 18 | Q4 2024 earnings | Positive | +15.5% | Strong Q4 2024 results and new dividend and buyback authorization. |
| Nov 12 | Q3 2024 earnings | Positive | -5.5% | Solid Q3 2024 growth in subscriptions, users, and margins. |
Earnings releases have generally driven positive reactions, but there is a mixed pattern with a couple of notable selloffs on otherwise strong results.
Over the past year, TME has delivered a series of strong earnings reports, with revenues and profits growing across all four quarters of 2025 and into Q4 2024. Prior earnings days saw sizable moves, including reactions of +15.54% and -8.39%. The company consistently highlighted online music revenue growth, rising ARPPU, and expanding cash balances. Today’s Q4 and full-year 2025 results extend that trend with double‑digit revenue and profit growth, fitting into an ongoing pattern of operational and financial strengthening.
Historical Comparison
Past earnings headlines moved TME about 3.21% on average. Today’s 6.34% pre-news gain sits above that norm, signaling a stronger-than-usual reaction to these results.
Across 2024–2025 earnings, TME showed consistent revenue and subscription growth, rising ARPPU, and stronger profits, with 2025 quarters building on the momentum established in late 2024.
Market Pulse Summary
The stock dropped -24.6% in the session following this news. A negative reaction despite solid 2025 revenue and profit growth would fit TME’s mixed record, where some strong earnings, such as Q3 2024 and Q3 2025, saw declines of -5.45% and -8.39%. In that context, investors have previously sold into good news after sharp runs. With the share price below the 200‑day MA of 19.88, prior rallies have sometimes been vulnerable to profit‑taking after results.
Key Terms
ads financial
non-ifrs financial
arppu financial
distribution-in-kind financial
multimodal large model technical
ai agent technical
AI-generated analysis. Not financial advice.
Fourth Quarter 2025 Financial Highlights
- Total revenues were
RMB8.64 billion (US ), representing$1.24 billion 15.9% year-over-year increase, primarily due to strong growth in revenues from online music services. - Revenues from online music services were
RMB7.10 billion (US ), representing$1.02 billion 21.7% year-over-year growth. Revenues from music subscriptions wereRMB4.56 billion (US ), representing$653 million 13.2% year-over-year growth. Revenues from music services other than music subscriptions wereRMB2.54 billion (US ), representing$363 million 40.8% year-over-year growth. - Net profit attributable to equity holders of the Company was
RMB2.20 billion (US ), representing$315 million 12.6% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company[1] was RMB2.49 billion (US ), representing$355 million 9.0% year-over-year growth. - Diluted earnings per ADS was
RMB1.41 (US ), up from$0.20 RMB1.26 in the same period of 2024. Non-IFRS diluted earnings per ADS wasRMB1.60 (US ), up from$0.23 RMB1.47 in the same period of 2024. - Total cash, cash equivalents, term deposits and short-term investments as of December 31, 2025 were
RMB38.04 billion (US ).$5.44 billion
Full Year 2025 Financial Highlights
- Total revenues were RMB32.90 billion (
US ), representing$4.71 billion 15.8% year-over-year increase. - Revenues from online music services were
RMB26.73 billion (US ), representing$3.82 billion 22.9% year-over-year growth. Revenues from music subscriptions were RMB17.66 billion (US ), representing$2.53 billion 16.0% year-over-year growth. Revenues from music services other than music subscriptions wereRMB9.07 billion (US ), representing$1.30 billion 39.2% year-over-year growth. - Net profit attributable to equity holders of the Company was RMB11.06 billion (
US ), representing$1.58 billion 66.4% year-over-year growth, as the Company has recognized a gain ofRMB2.37 billion (US ) on deemed disposal of an associate in the first quarter of 2025. Non-IFRS net profit attributable to equity holders of the Company[1] was RMB9.59 billion ($339 million US ), representing$1.37 billion 25.0% year-over-year growth. - The Company's board of directors approved an annual cash dividend of approximately US
$368 million for the year ended December 31, 2025.
Mr. Cussion Pang, Executive Chairman of TME, commented, "In 2025, we executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion. Fueled by the solid growth of our subscription services and the powerful momentum of music IP non-subscription offerings, we are deepening a differentiated, all-in-one music services platform. This enables us to unlock greater value from music IPs, creating new opportunities for artists, and address a larger market. As the competitive landscape in music continues to evolve, our track record in delivering integrated, expansive, and multi-faceted services gives us a distinct competitive edge. With disciplined investment and persistent innovation guided by long-term value creation, we are confident in spearheading industry advancement."
Mr. Ross Liang, CEO of TME, continued, "Amid rapid advancements in AI technology and evolving consumer expectations, we remained agile, responding proactively on multiple fronts to better serve our users and strengthen our content platform flywheel. Our relentless focus on product enhancement and a multi-tiered, user-centric strategy drove effective subscriber conversion, deeper engagement, and increased wallet share throughout 2025. Notably, driven by differentiated, expansive content privileges and immersive experiences, our SVIP user base surpassed 20 million, with ARPPU continuing to trend upward. Our newly launched ad-supported subscription plan is gaining initial progress and will, over time, allow us to broaden user access and attract new audiences."
Fourth Quarter 2025 Operational Highlights
- Key Operating Metrics
4Q25 | 4Q24 | YoY % | |
MAUs – online music (million) | 528 | 556 | (5.0 %) |
Paying users – online music (million) | 127.4 | 121.0 | 5.3 % |
Monthly ARPPU – online music (RMB) | 11.9 | 11.1 | 7.2 % |
CONTENT - Diversified and differentiated offering strengthened our content advantage and broadened audience appeal.
- Unlocked and elevated classic repertoire value, a key driver of emotional connections and subscription conversion. 1) Renewed and deepened contracts with Warner Music Group and Bin-music, continuing to explore further collaboration in physical albums, merchandise, and live performances. 2) Expanded partnership with Media Asia Music to bring Dolby Atmos to over 300 iconic tracks from legendary artists like Eason Chan, Leslie Cheung, and Andy Lau[2] for the first time, giving audiences an immersive way to enjoy these classics.
- Expansive and differentiated self-produced content resonated strongly with users which in return drove up streaming share. 1) The Mid-Autumn-themed song, Year After Year by artist Xiao Zhan, became an instant hit, charting globally in 17 countries and regions and amassing over 100 million views across social media platforms in a single day. 2) The recent bespoke OST suite produced for
Tencent Video's blockbuster drama Shine on Me, also topped multiple music charts, effectively boosting user engagement. 3) Several co-produced songs staged at the 2026 CMG Spring Festival Gala quickly went viral, with multiple tracks surpassing 10 million streams in less than a week. - Broadened genres popular among younger demographics boosted user engagement and streaming share. 1) Expansive K-pop content offerings strengthened by the recent renewed partnership with the Korean label P NATION CORPORATION, providing a 30-day head-start benefit for new releases from artists and groups such as PSY, CRUSH, HWASA, Baby DONT Cry and TNX. 2) Through
Tencent Musician Platform, we partnered with more indie and emerging artists such as popular indie band Fine. The collaboration further enriched our catalog, highlighted by their hit single Breathing Decision.
IP-VALUE - Unlocked greater IP value through accelerating expansion of more live performance, curated merchandise, and broader strategic artist partnerships.
- Cultivated premium live experiences to empower artists in expanding their audience reach. We successfully hosted multiple flagship live events in 2025, laying a solid foundation for future collaborations with world-class artists. Notably, we delivered end-to-end production for G-DRAGON's 2025 tour, spanning 20 concerts across eight
Asia Pacific cities and attracting over 260,000 attendees. The fourth quarter featured our largest-scale production for him, with two sold-out shows at the Taipei Dome drawing an audience of over 75,000. - By onboarding more strategic artists and collaborating across music promotion, live performances, artist management, and merchandise, we amplify the long-term value and versatility of our IP portfolio, paving the way to address a larger market with richer content experiences.
- Expanded merchandise offerings, sparking new waves of music consumption. 1) Collaborated with Ed Sheeran to produce a KIT album for his new release Play, marking our first partnership with a top-tier Western artist in this hybrid music format. 2) Offered collectibles alongside physical releases to boost engagement and sales, from Esther Yu's deluxe album Spicy Honey to tour-inspired items like Lay Zhang's "GRANDLINE•BOUNDLESS" Tour Special Commemorative Gift Box and LUHAN's SEASON4
ASIA TOUR Commemorative Album.
PLATFORM - Comprehensive product offerings and integrated use cases deepened user engagement, making music journeys more ubiquitous, enriching, and immersive.
- Deepened multi-device coverage by integrating further into PC, in-car, smart speaker, and wearable ecosystems, making music consumption an integral part of users' lives, whether they are commuting, at home, or at work.
- Leveraged the multi-platform portfolio to serve a wide range of user with different preferences more effectively. While Kugou Music and QQ Music applications provide comprehensive music services to highly engaged users with a strong willingness to pay, lightweight sub-brands such as Bodian Music and Kugou Concept cater to casual listeners.
- Deepened integration with Weixin Video Account to generate hit music charts and promote music consumption.
- Introduced new social features within our music applications to amplify user reach and deepen user engagement. 1) QQ Music launched Weverse DM, onboarding around 170 artists from HYBE and other labels to deepen artist-fan interactions. 2) bubble enhanced its functionality by introducing intelligent song recognition and live performance streaming for domestic artists. 3) Our Annual Music report campaign, with personal letters and AI-generated voice messages from artists, drove social buzz and widespread sharing.
SUBSCRIPTION - SVIP memberships further scaled, capturing more users and deepening music consumption.
- Benefiting from deepened collaborations with music labels, artists and the rollout of new, high valued benefits, SVIP subscribers exceeded 20 million by year-end 2025.
- Appointed brand ambassadors for our SVIP program, including Ryan Ding, Ju Jingyi, and Karry Wang for QQ Music, and Liu Yuning for Kugou Music. Launched prioritized ticketing packages for QQ Music's Top Music Night 2026 and the annual gala of Melody Journey 2, both of which resulted in effective SVIP adoption. Other SVIP benefits such as premium audio effects, personalized avatar outfits and feature-related perks further catalyzed SVIP acquisition and retention.
AI - Harnessed AI to empower music creation, elevate users' music experiences, and drive well-rounded music consumption.
- Enriched music content library with 1) Our one-stop AI music production platform, which empowered more than 150,000 artists and over 10 million users to create and produce music through an increasingly efficient process. 2) Leveraged AI to capture chorus highlights and generate video clips, making the music journey more fun and engaging.
- Deepened cooperation with the broader Tencent ecosystem to enhance content distribution and consumption. 1) Leveraged self-developed multimodal large model to enhance recommendations, resulting in a record high share of recommendation-driven streams. 2) QQ Music seamlessly integrated with Tencent's AI app Yuanbao, offering users more intelligent and personalized music streaming journeys.
- QQ Music's AI Agent, powered by Yuanbao, became a system-level hub, allowing users to handle complex tasks through natural-language commands. This evolution goes beyond music discovery to enable direct access to digital albums and merchandise purchases, creating a truly "intent-to-action" experience that drives conversion.
Fourth Quarter 2025 Financial Review
Total revenues increased by
- Revenues from online music services increased by
21.7% toRMB7.10 billion (US ), compared with$1.02 billion RMB5.83 billion in the same period of 2024. The increase was driven by solid growth in revenues from music subscription and offline performances, supplemented by growth in revenues from advertising services. Revenues from music subscriptions wereRMB4.56 billion (US ), representing$653 million 13.2% year-over-year growth, compared withRMB4.03 billion in the same period of 2024. The rapid growth was mainly driven by our continuous expansion of membership privileges, such as early access to offline performances, artist-related merchandise, and a wide range of premium offerings. Revenues from offline performances achieved robust year-over-year growth. We successfully staged many successful concerts for renowned artists both inChina and overseas. The year-over-year increase in revenues from advertising 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
5.2% toRMB1.54 billion (US ) from$221 million RMB1.63 billion in the same period of 2024.
Cost of revenues increased by
Gross margin increased to
Total operating expenses increased by
- Selling and marketing expenses were
RMB266 million (US ), representing$38 million 7.3% year-over-year increase. The increase was primarily due to higher channel spending and content promotion expenses. - General and administrative expenses were
RMB981 million (US ), representing$140 million 5.9% year-over-year increase. The increase was primarily due to growth in employee-related expenses.
Total operating profit was RMB2.84 billion (
Income tax expenses for the fourth quarter of 2025 were
For the fourth quarter of 2025, net profit was
Basic and diluted earnings per American Depositary Shares ("ADS") for the fourth quarter of 2025 were
As of December 31, 2025, the combined balance of the Company's cash, cash equivalents, term deposits and short-term investments amounted to
Full Year 2025 Financial Review
Total revenues increased by RMB4.50 billion, or
- Revenues from online music services delivered a strong year-over-year increase of
22.9% to RMB26.73 billion (US ) from RMB21.74 billion in 2024. The increase was driven by solid growth in music subscription revenues, supplemented by growth in revenues from offline performances, advertising services and artist-related merchandise. Revenues from music subscriptions were RMB17.66 billion ($3.82 billion US ), representing$2.53 billion 16.0% year-over-year growth, compared with RMB15.23 billion in 2024. The rapid growth was mainly driven by our continuous expansion of membership privileges, such as early access to live performances, artist-related merchandise, and a wide range of premium offerings. - Revenues from social entertainment services and others decreased by
7.3% to RMB6.18 billion (US ) from RMB6.66 billion in 2024.$883 million
Cost of revenues increased by
Gross margin increased to
Total operating expenses increased by
- Selling and marketing expenses were RMB941 million (
US ), representing$135 million 8.8% year-over-year increase. The increase was primarily due to higher content promotion expenses and channel spending. - General and administrative expenses were
RMB3.92 billion (US ), representing$560 million 2.8% year-over-year increase. The increase was primarily due to growth in employee-related expenses.
Other gains, net were
Total operating profit was RMB13.36 billion (
Income tax expenses for the full year of 2025 were
For the full year of 2025, net profit was RMB11.35 billion (
Basic and diluted earnings per ADS for the full year of 2025 were RMB7.21(
Declaration of 2025 Dividend
For the fiscal year of 2025, the Company's board of directors declared a cash dividend of US
Planned Disclosure Change
We adopted the number of paid subscribers and ARPPU as key operating metrics for our online music services at the time of our listing; however, our business model has significantly evolved in recent years. As advertising and other IP related offerings scale, and as we offer multi-tiered membership for online music subscriptions, the business impact of each paid membership varies. As a result, we are increasingly focused on revenue and profit as our primary performance indicators. Given this evolution, starting from next quarter, we will discontinue the disclosure of certain quarterly operating metrics, including online music MAU, paying users and ARPPU. We will instead report the number of total paying users across our music services annually, as of year-end.
Environmental, Social, and Governance ("ESG")
We continued to enhance accessibility and inclusive design, broadening access for users of different ages and abilities. For example, QQ Music pioneered a Children's Hearing Protection Mode, leveraging AI to optimize audio output for a healthy listening experience.
Exchange Rate
This announcement contains translations of certain RMB amounts into
Non-IFRS Financial Measure
The Company uses non-IFRS net profit for the period, which is a non-IFRS financial measure, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS net profit helps 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 net profit for the period provides 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 net profit 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 net profit for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS net profit 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.
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 Measure" included in this press release for a full reconciliation of non-IFRS net profit for the period to its net profit for the period.
[1] Non-IFRS net profit attributable to equity holders of the Company was arrived at after excluding the combined effect of amortization of intangible assets and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments, and related income tax effects. |
[2] 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
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
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 December 31 | Year Ended December 31 | ||||||||||||
2024 | 2025 | 2024 | 2025 | ||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||
(in millions, except per share data) | (in millions, except per share data) | ||||||||||||
Revenues | |||||||||||||
Online music services | 5,831 | 7,099 | 1,015 | 21,742 | 26,726 | 3,822 | |||||||
Social entertainment services and others | 1,627 | 1,542 | 221 | 6,659 | 6,176 | 883 | |||||||
7,458 | 8,641 | 1,236 | 28,401 | 32,902 | 4,705 | ||||||||
Cost of revenues | (4,205) | (4,779) | (683) | (16,376) | (18,367) | (2,626) | |||||||
Gross profit | 3,253 | 3,862 | 552 | 12,025 | 14,535 | 2,078 | |||||||
Selling and marketing expenses | (248) | (266) | (38) | (865) | (941) | (135) | |||||||
General and administrative expenses | (926) | (981) | (140) | (3,811) | (3,916) | (560) | |||||||
Total operating expenses | (1,174) | (1,247) | (178) | (4,676) | (4,857) | (695) | |||||||
Interest income | 315 | 258 | 37 | 1,196 | 1,054 | 151 | |||||||
Other gains/(losses), net | 15 | (33) | (5) | 165 | 2,632 | 376 | |||||||
Operating profit | 2,409 | 2,840 | 406 | 8,710 | 13,364 | 1,911 | |||||||
Share of net profit/(loss) of investments accounted | 31 | (8) | (1) | 96 | 42 | 6 | |||||||
Finance cost | 59 | (60) | (9) | (94) | (129) | (18) | |||||||
Profit before income tax | 2,499 | 2,772 | 396 | 8,712 | 13,277 | 1,899 | |||||||
Income tax expense | (423) | (486) | (69) | (1,603) | (1,924) | (275) | |||||||
Profit for the period/year | 2,076 | 2,286 | 327 | 7,109 | 11,353 | 1,623 | |||||||
Attributable to: | |||||||||||||
Equity holders of the Company | 1,957 | 2,203 | 315 | 6,644 | 11,056 | 1,581 | |||||||
Non-controlling interests | 119 | 83 | 12 | 465 | 297 | 42 | |||||||
Earnings per share for Class A and Class B | |||||||||||||
Basic | 0.64 | 0.72 | 0.10 | 2.15 | 3.60 | 0.52 | |||||||
Diluted | 0.63 | 0.71 | 0.10 | 2.12 | 3.56 | 0.51 | |||||||
Earnings per ADS (2 Class A shares equal to 1 ADS) | |||||||||||||
Basic | 1.27 | 1.43 | 0.20 | 4.31 | 7.21 | 1.03 | |||||||
Diluted | 1.26 | 1.41 | 0.20 | 4.24 | 7.11 | 1.02 | |||||||
Shares used in earnings per Class A and Class B | |||||||||||||
Basic | 3,075,189,032 | 3,079,832,739 | 3,079,832,739 | 3,084,230,029 | 3,067,255,442 | 3,067,255,442 | |||||||
Diluted | 3,112,342,854 | 3,115,495,322 | 3,115,495,322 | 3,130,861,720 | 3,108,803,728 | 3,108,803,728 | |||||||
ADS used in earnings per ADS computation | |||||||||||||
Basic | 1,537,594,516 | 1,539,916,369 | 1,539,916,369 | 1,542,115,015 | 1,533,627,721 | 1,533,627,721 | |||||||
Diluted | 1,556,171,427 | 1,557,747,661 | 1,557,747,661 | 1,565,430,860 | 1,554,401,864 | 1,554,401,864 | |||||||
TENCENT MUSIC ENTERTAINMENT GROUP | ||||||||||||||||||
UNAUDITED NON-IFRS FINANCIAL MEASURE | ||||||||||||||||||
Three Months Ended December 31 | Year Ended December 31 | |||||||||||||||||
2024 | 2025 | 2024 | 2025 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
(in millions, except per share data) | (in millions, except per share data) | |||||||||||||||||
Profit for the period/year | 2,076 | 2,286 | 327 | 7,109 | 11,353 | 1,623 | ||||||||||||
Adjustments: | ||||||||||||||||||
Amortization of intangible and other assets arising from | 110 | 95 | 14 | 440 | 386 | 55 | ||||||||||||
Share-based compensation | 156 | 161 | 23 | 681 | 680 | 97 | ||||||||||||
Losses/(gains) from investments** | 94 | 78 | 11 | 110 | (2,285) | (327) | ||||||||||||
Income tax effects*** | (37) | (39) | (6) | (204) | (210) | (30) | ||||||||||||
Non-IFRS Net Profit | 2,399 | 2,581 | 369 | 8,136 | 9,924 | 1,419 | ||||||||||||
Attributable to: | ||||||||||||||||||
Equity holders of the Company | 2,280 | 2,485 | 355 | 7,671 | 9,588 | 1,371 | ||||||||||||
Non-controlling interests | 119 | 96 | 14 | 465 | 336 | 48 | ||||||||||||
Earnings per share for Class A and Class B | ||||||||||||||||||
Basic | 0.74 | 0.81 | 0.12 | 2.49 | 3.13 | 0.45 | ||||||||||||
Diluted | 0.73 | 0.80 | 0.11 | 2.45 | 3.08 | 0.44 | ||||||||||||
Earnings per ADS (2 Class A shares equal to 1 ADS) | ||||||||||||||||||
Basic | 1.48 | 1.61 | 0.23 | 4.97 | 6.25 | 0.89 | ||||||||||||
Diluted | 1.47 | 1.60 | 0.23 | 4.90 | 6.17 | 0.88 | ||||||||||||
Shares used in earnings per Class A and Class B | ||||||||||||||||||
Basic | 3,075,189,032 | 3,079,832,739 | 3,079,832,739 | 3,084,230,029 | 3,067,255,442 | 3,067,255,442 | ||||||||||||
Diluted | 3,112,342,854 | 3,115,495,322 | 3,115,495,322 | 3,130,861,720 | 3,108,803,728 | 3,108,803,728 | ||||||||||||
ADS used in earnings per ADS computation | ||||||||||||||||||
Basic | 1,537,594,516 | 1,539,916,369 | 1,539,916,369 | 1,542,115,015 | 1,533,627,721 | 1,533,627,721 | ||||||||||||
Diluted | 1,556,171,427 | 1,557,747,661 | 1,557,747,661 | 1,565,430,860 | 1,554,401,864 | 1,554,401,864 | ||||||||||||
* 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 | ||||||||||||||||||
** 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, 2024 | As at December 31, 2025 | |||||
RMB | RMB | US$ | ||||
Audited | Unaudited | Unaudited | ||||
(in millions) | ||||||
ASSETS | ||||||
Non-current assets | ||||||
Property, plant and equipment | 803 | 1,201 | 172 | |||
Land use rights | 2,364 | 2,290 | 327 | |||
Right-of-use assets | 295 | 287 | 41 | |||
Intangible assets | 2,049 | 2,899 | 415 | |||
Goodwill | 19,647 | 20,521 | 2,934 | |||
Investments accounted for using equity method | 4,669 | 1,659 | 237 | |||
Financial assets at fair value through other comprehensive income | 14,498 | 26,231 | 3,751 | |||
Other investments | 309 | 303 | 43 | |||
Prepayments, deposits and other assets | 425 | 365 | 52 | |||
Deferred tax assets | 422 | 498 | 71 | |||
Term deposits | 10,419 | 13,810 | 1,975 | |||
55,900 | 70,064 | 10,019 | ||||
Current assets | ||||||
Inventories | 23 | 41 | 6 | |||
Accounts receivable | 3,508 | 3,903 | 558 | |||
Prepayments, deposits and other assets | 3,793 | 4,183 | 598 | |||
Other investments | 46 | 83 | 12 | |||
Term deposits | 13,999 | 15,763 | 2,254 | |||
Restricted Cash | 11 | 15 | 2 | |||
Cash and cash equivalents | 13,164 | 8,470 | 1,211 | |||
34,544 | 32,458 | 4,641 | ||||
Total assets | 90,444 | 102,522 | 14,660 | |||
EQUITY | ||||||
Equity attributable to equity holders of the Company | ||||||
Share capital | 2 | 2 | 0 | |||
Additional paid-in capital | 29,035 | 29,919 | 4,278 | |||
Shares held for share award schemes | (520) | (801) | (115) | |||
Treasury shares | (550) | (664) | (95) | |||
Other reserves | 19,845 | 22,450 | 3,210 | |||
Retained earnings | 20,051 | 29,381 | 4,201 | |||
67,863 | 80,287 | 11,481 | ||||
Non-controlling interests | 1,863 | 2,763 | 395 | |||
Total equity | 69,726 | 83,050 | 11,876 | |||
LIABILITIES | ||||||
Non-current liabilities | ||||||
Notes payables | 3,572 | 3,497 | 500 | |||
Other payables and other liabilities | - | 379 | 54 | |||
Deferred tax liabilities | 198 | 504 | 72 | |||
Lease liabilities | 219 | 200 | 29 | |||
Deferred revenue | 179 | 303 | 43 | |||
4,168 | 4,883 | 698 | ||||
Current liabilities | ||||||
Accounts payable | 6,879 | 6,284 | 899 | |||
Other payables and other liabilities | 3,381 | 3,558 | 509 | |||
Notes payables | 2,154 | - | - | |||
Current tax liabilities | 934 | 1,092 | 156 | |||
Lease liabilities | 106 | 116 | 17 | |||
Deferred revenue | 3,096 | 3,539 | 506 | |||
16,550 | 14,589 | 2,086 | ||||
Total liabilities | 20,718 | 19,472 | 2,784 | |||
Total equity and liabilities | 90,444 | 102,522 | 14,660 | |||
TENCENT MUSIC ENTERTAINMENT GROUP | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
Three Months Ended December 31 | Year Ended December 31 | |||||||||||
2024 | 2025 | 2024 | 2025 | |||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||
(in millions) | (in millions) | |||||||||||
Net cash provided by operating activities | 2,480 | 2,391 | 342 | 10,275 | 10,231 | 1,463 | ||||||
Net cash provided by/(used in) investing activities | 1,324 | (5,129) | (733) | (6,818) | (10,227) | (1,462) | ||||||
Net cash used in financing activities | (815) | (15) | (2) | (3,830) | (4,649) | (665) | ||||||
Net increase/(decrease) in cash and cash equivalents | 2,989 | (2,753) | (394) | (373) | (4,645) | (664) | ||||||
Cash and cash equivalents at beginning of the period/year | 10,209 | 11,255 | 1,609 | 13,567 | 13,164 | 1,882 | ||||||
Exchange differences on cash and cash equivalents | (34) | (32) | (5) | (30) | (49) | (7) | ||||||
Cash and cash equivalents at end of the period/year | 13,164 | 8,470 | 1,211 | 13,164 | 8,470 | 1,211 | ||||||
View original content:https://www.prnewswire.com/news-releases/
SOURCE Tencent Music Entertainment Group
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