Tencent Music posted a 17.9 percent year-over-year revenue increase in Q2 2025, reaching RMB8.44 billion (US$1.18 billion) compared with RMB7.16 billion a year earlier.
Credit NME
Online music services were the main growth driver, rising 26.4 percent to RMB6.85 billion (US$957 million) on the back of higher music subscription revenues, stronger advertising income, and expansion in artist merchandise and offline performances.
Music subscription revenues grew 17.1 percent to RMB4.38 billion (US$611 million), fueled by a higher monthly ARPPU of RMB11.7, up from RMB10.7 a year earlier, supported by the enriched SVIP membership program. Advertising revenues also advanced on the back of a diversified product mix and innovative ad formats.
Tencent Music’s online music paying users grew 6.3 percent year-over-year to 124.4 million in Q2 2025. Tencent Music reported a 3.2 percent decline in monthly active users to 553 million. Monthly ARPPU increased 9.3 percent to RMB11.7 from RMB10.7, reflecting stronger monetization driven by the expansion of SVIP membership privileges.
TME CEO Ross Liang said the company’s focus on product innovation and immersive experiences has fueled growth in its online music business, driven by rising subscribers, higher ARPPU, and deeper engagement. He highlighted surpassing 15 million SVIP subscribers as a milestone and reaffirmed commitment to investing in initiatives that benefit music creators and consumers.
Social entertainment services and others saw an 8.5 percent decline to RMB1.59 billion (US$222 million), reflecting weaker demand. Cost of revenues rose 13.1 percent to RMB4.69 billion (US$655 million), mainly due to higher IP-related costs, though lower revenue-sharing fees helped offset some pressure.
Gross margin of Tencent Music improved to 44.4 percent from 42.0 percent, driven by subscription and advertising growth, and a reduced revenue-sharing ratio in social entertainment, partially offset by increased lower-margin merchandise and performance revenues. Operating expenses remained stable at RMB1.16 billion (US$161 million), with the expense ratio falling to 13.7 percent from 16.0 percent.
TelecomLead.com News Desk
