【TME Earnings】Tencent Music Q4 Adjusted Net Income Increases 9% YoY, Final Dividend Increases 33% to 12 US Cents

Tencent Music (01698) (US: TME) For the fourth quarter ending December 31, 2025, net profit increased by 13% year-on-year to 2.2 billion RMB; non-IFRS attributable net profit to shareholders rose by 9% year-on-year to 2.49 billion RMB.

In the fourth quarter, Tencent Music’s diluted earnings per American Depositary Share (ADS) were 1.41 RMB, up 12% year-on-year. Non-IFRS diluted earnings per ADS were 1.6 RMB, up 9% year-on-year. The board of directors announced a dividend of 12 US cents per ordinary share for fiscal year 2025, an increase of 33% year-on-year.

Tencent Music’s total revenue for the fourth quarter was 8.64 billion RMB, up 16% year-on-year, mainly driven by strong growth in online music service revenue.

CEO Liang Zhu of Tencent Music Entertainment Group stated that with differentiated massive content rights and immersive experiences, the number of super members has exceeded 20 million. The average monthly revenue per paying user remains steady. Recently, Tencent Music launched an advertising membership subscription plan, which has made initial progress. Going forward, this will help the group further expand user reach and attract new audiences.

In Q4 2025, Tencent Music’s online music service revenue grew 22% year-on-year to 7.1 billion RMB; subscription revenue increased 13% to 4.56 billion RMB; non-subscription online music revenue grew 41% to 2.54 billion RMB; meanwhile, social entertainment services and other service revenue declined 5% to 1.54 billion RMB.

In Q4, Tencent Music’s online music service monthly active users (MAUs) were 530 million, down 5% year-on-year; paying users increased 5% year-on-year to 130 million; average monthly revenue per paying user rose 7% to 11.9 RMB.

Gross profit margin increased from 43.6% in the same period in 2024 to 44.7%, mainly due to growth in music subscription and advertising service revenues, and a decrease in revenue sharing ratio for social entertainment services.

As of December 31, 2025, the total cash, cash equivalents, time deposits, and short-term investments amounted to 38.04 billion RMB.

Tencent Music’s business model has significantly changed in recent years. With the continuous expansion of advertising and other IP-related businesses, and the company offering multi-tiered membership services for online music subscriptions, the contribution of each paying member to the overall business varies. Therefore, the company is increasingly focusing on revenue and profit as core performance indicators. Due to this development, starting next quarter, the company will cease disclosing certain quarterly operational metrics, including monthly active users, paying users, and average revenue per paying user for online music. Instead, the company will disclose the total number of paid music service users annually at year-end.