Tencent Music Entertainment Group (NYSE:TME) reported fourth-quarter results on Tuesday that fell short of earnings expectations, even as revenue exceeded analyst forecasts, supported by continued expansion in its online music services.
The company recorded adjusted earnings of RMB1.41 ($0.20) per American depositary share (ADS), below the analyst consensus estimate of RMB1.54 per ADS. Revenue, however, came in at RMB8.64 billion ($1.24 billion), ahead of the expected RMB8.44 billion and marking a 15.9% increase from RMB7.46 billion in the same quarter a year earlier.
The rise in revenue was mainly driven by the company’s online music segment, which grew 21.7% year-on-year to RMB7.10 billion.
Subscription-based music revenue increased 13.2% year-on-year to RMB4.56 billion, supported by enhanced membership benefits such as early access to offline concerts and exclusive artist merchandise.
Revenue from non-subscription music services surged 40.8% year-on-year to RMB2.54 billion, helped by strong demand for live offline performances and advertising services.
“In 2025, we executed our content-and-platform strategy with discipline, delivering accelerated revenue growth and sustained margin expansion,” said Cussion Pang, Executive Chairman of TME.
The number of paying users for online music services rose 5.3% year-on-year to 127.4 million, while the average monthly revenue per paying user increased 7.2% to RMB11.9. The company also reported that its SVIP subscriber base surpassed 20 million by the end of the year. Gross margin improved to 44.7%, compared with 43.6% in the same period a year earlier.
For the full year 2025, Tencent Music reported total revenue of RMB32.90 billion, representing a 15.8% increase year-on-year. Adjusted net profit reached RMB9.59 billion, up 25.0% compared with the previous year.
The company’s board also approved an annual cash dividend totaling about $368 million, equivalent to $0.24 per ADS.