Tencent Music Entertainment ( (TME) ) has released its Q1 earnings. Here is a breakdown of the information Tencent Music Entertainment presented to its investors.
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Tencent Music Entertainment Group, a leading online music and audio entertainment platform in China, operates popular music apps like QQ Music and WeSing, offering a wide range of music and audio services. In its first quarter of 2025 earnings report, Tencent Music Entertainment Group reported significant growth in its financial performance, driven primarily by an increase in music subscription revenues and a substantial rise in net profit. The company achieved total revenues of RMB7.36 billion, marking an 8.7% year-over-year increase, with music subscription revenues growing by 16.6% to RMB4.22 billion. The number of paying users rose to 122.9 million, contributing to the overall revenue growth. Net profit attributable to equity holders surged by 201.8% year-over-year to RMB4.29 billion, bolstered by a gain from the deemed disposal of an investment. The company’s gross margin improved to 44.1%, reflecting strong growth in music subscriptions and advertising services. Despite a decline in revenues from social entertainment services, Tencent Music maintained a robust financial position with cash and cash equivalents totaling RMB37.67 billion. Looking ahead, Tencent Music Entertainment Group remains optimistic about its growth prospects, focusing on enhancing user engagement and expanding its music ecosystem. The company’s strategic investments in content and innovative products are expected to drive sustainable growth in 2025 and beyond.