Tencent Music Entertainment Group (NYSE:TME) Q3 2025 Earnings Call November 12, 2025 06:00 AM ET Company ParticipantsRoss Zhu - CEOLincoln Harris - Asset ManagementShirley Hu - CFOYang Liu - Executive DirectorCussion Pang - Executive ChairmanCussion Kar Shun Pang - Executive ChairmanMillicent T. - Head of Investor RelationsConference Call ParticipantsChris Thomas - Investment Banking AnalystMaggie Ye - Research AnalystAlicia Yap - Managing Director and Senior Equity AnalystMillicent T.Good evening and good ...

Financial Data and Key Metrics Changes - In Q3 2025, total revenues grew 21% year-on-year to CNY 8.5 billion, marking the highest revenue growth since Q1 2021 [17] - Online music revenues increased by 27% year-on-year to CNY 7 billion [18] - Music subscription revenues surged 70% year-on-year to CNY 4.5 billion, driven by growth in monthly ARPPU and subscriber base [18] - Monthly ARPPU reached CNY 11.9, up from CNY 10.8 in the same period last year [18] - Net profit increased by 29% to CNY 2.2 billion, with non-IFRS net profit rising by 28% to CNY 2.5 billion [22] Business Line Data and Key Metrics Changes - Offline performances and artist-related merchandise sales experienced triple-digit year-on-year revenue growth [19] - Advertising revenue continued to grow, driven by a diversified product portfolio and innovative ad formats [19] - Social entertainment services and other revenues were CNY 1.5 billion, down by 3% year-on-year [20] Market Data and Key Metrics Changes - The company successfully hosted multiple concerts both domestically and internationally, including a concert tour for G-Dragon that drew over 150,000 attendees [5][6] - The annual flagship TMEA Concerts featured 35 artists and attracted more than 10,000 attendees [6] Company Strategy and Development Direction - The company aims to leverage its dual-engine strategy of platform and content to enhance user experience and drive growth [10][33] - Continued focus on expanding the music service and unlocking new growth opportunities through artist partnerships and innovative offerings [3][8] - The company is committed to enhancing its music ecosystem and exploring new opportunities in offline performances and artist-related merchandise [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong results for Q4 2025 and 2026, with expectations of sustained healthy growth in music subscription and non-subscription businesses [25][27] - The competitive landscape remains challenging, but the company believes its extensive music library and user experience will maintain its leadership position [29][30] Other Important Information - The company has won the Music Garden Space Public Welfare Program for seven consecutive years, supporting music education in rural areas [9] - The company is exploring new product combinations and service formats to enhance the fan-based economy [26] Q&A Session Summary Question: What is the outlook for Q4 2025 and 2026? - Management is optimistic about strong performance in both online music services and overall revenue growth for 2025, with a focus on subscription and non-subscription business growth [25][27] Question: How does management view the competitive landscape in the music streaming business? - Management acknowledges competition from peers but believes in their competitive edge through content differentiation and user experience [28][29] Question: What are the growth drivers for subscription services in 2026? - Growth will be driven by high-quality content, content privileges, and functional enhancements, with a focus on maintaining steady growth in subscriber base and ARPPU [39][41]

Core Viewpoint - Tencent Music Entertainment Group reported steady growth in its financial performance for the third quarter ending September 30, 2025, with total revenue reaching 8.46 billion yuan, a year-on-year increase of 20.6%, and adjusted net profit of 2.48 billion yuan, up 27.7% [1] Financial Performance - Total revenue for the third quarter was 8.46 billion yuan, reflecting a 20.6% year-on-year growth [1] - Adjusted net profit for the quarter was 2.48 billion yuan, representing a 27.7% increase compared to the previous year [1] - Online music service revenue grew by 27.2% year-on-year to 6.97 billion yuan [1] - Average revenue per paying user increased from 10.8 yuan in the same quarter of 2024 to 11.9 yuan [1] Strategic Initiatives - The company’s growth is attributed to the deepening of its "one body, two wings" strategy, focusing on content and platform integration [1] - Tencent Music has strengthened collaborations with global record companies and artists, hosting large-scale domestic and international tours, and expanding its own performance IP matrix [1] - Continuous innovation in product features and services aims to meet the diverse needs of user groups, creating personalized and differentiated music experiences [1] Future Outlook - Tencent Music plans to seize emerging opportunities and expand its music service offerings, collaborating with industry partners to promote healthy industry development [1]

Core Insights - Tencent Music reported a robust growth in its Q3 2025 financial results, with total revenue reaching 8.46 billion yuan [1] - The online music service revenue grew by 27.2% year-on-year to 6.97 billion yuan, indicating its crucial role in the long-term healthy growth of the overall performance [1] - The online music subscription revenue increased by 17.2% year-on-year to 4.5 billion yuan, with ARPPU rising to 11.9 yuan, showcasing strong performance across various segments [1] Financial Performance - Total revenue for Q3 2025 was 8.46 billion yuan [1] - Online music service revenue was 6.97 billion yuan, reflecting a year-on-year growth of 27.2% [1] - Online music subscription revenue reached 4.5 billion yuan, with a year-on-year increase of 17.2% [1] - The ARPPU for online music services improved to 11.9 yuan [1] Business Expansion - Tencent Music's online music business demonstrated exceptional performance across all areas, contributing to the expansion of its music service boundaries [3]

Company Overview - TME's online music paying users reached 125.7 million in 3Q25, with a paying ratio of 22.8%[8] - The platform boasts over 260 million music and audio tracks[12] - TME's last twelve months (LTM) total revenues as of 3Q25 were RMB 31.7 billion, with an adjusted net margin of 30.7%[12] - The company holds a strong cash position with RMB 36.08 billion in cash, cash equivalents, term deposits, and short-term investments[13] - Online music MAUs reached 551 million, with a monthly ARPPU of RMB 11.9, representing a YoY growth of 10.2%[13] Financial Highlights - Revenue from online music services in 3Q25 reached RMB 6.97 billion, a 27.2% YoY increase[36] - Revenue from music subscriptions in 3Q25 was RMB 4.50 billion, a 17.2% YoY increase[36] - Other online music services generated RMB 2.47 billion in revenue, a 50.6% YoY increase[36] - The online music monthly ARPPU in 3Q25 was RMB 11.9, a 10.2% YoY increase[37] - Non-IFRS net profit for 3Q25 was RMB 2.48 billion, a 27.7% YoY increase[37]

【#腾讯音乐三季度净利润21.5亿元##腾讯音乐三季度净利润同比增长36%#】 腾讯音乐三季度营收84.6 亿元，同比增20.6%，预估82.3亿元；营业利润27.1亿元，预估26.8亿元。公司权益持有人应占净利润为 人民币21.5亿元（3.02亿美元），同比增长36.0%。非国际财务报告准则归属于本公司股东的净利润为 人民币24.1亿元（3.38亿美元），同比增长32.6%。每股美国存托股份的摊薄盈利为人民币1.38元（0.19 美元），高于2024年同期的人民币1.01元。(智通财经） ...

Core Insights - Tencent Music Entertainment Group reported its third-quarter unaudited financial performance, with total revenue of 8.46 billion yuan, a year-on-year increase of 20.6%, and adjusted net profit of 2.48 billion yuan, up 27.7% [1] Financial Performance - The online music service revenue grew by 27.2% year-on-year to 6.97 billion yuan in the third quarter [1] - The average revenue per paying user increased from 10.8 yuan in the same period of 2024 to 11.9 yuan [1] Strategic Initiatives - Tencent Music's steady growth is attributed to the deepening of its "content and platform" dual strategy [1] - The company has strengthened collaborations with global record companies and artists, hosting large domestic and international tours, and expanding its own performance IP matrix [1] - Continuous innovation in product features and services aims to meet the diverse needs of user groups, creating personalized and differentiated music experiences [1] Future Outlook - Tencent Music plans to seize emerging opportunities and expand its music service offerings, collaborating with industry partners to promote healthy industry development [1]

Exhibit 99.1 Tencent Music Entertainment Group Announces Third Quarter 2025 Unaudited Financial Results SHENZHEN, China, Nov. 12, 2025 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2025. Third Quarter 2025 Financial Highlights Mr. Cussion Pang, Executive Chairman of TME, commented, "In the third ...

每经AI快讯，11月12日，腾讯音乐盘前涨超3%，公司三季度营收84.6亿元，高于市场预期。 （文章来源：每日经济新闻） ...

Core Insights - Tencent Music Entertainment Group reported its unaudited financial results for the third quarter ending September 30, 2025, showing a total revenue of 8.46 billion yuan, a year-on-year increase of 20.6% [1] - The adjusted net profit for the third quarter was 2.48 billion yuan, reflecting a year-on-year growth of 27.7% [1] Revenue Breakdown - Online music services revenue grew by 27.2% year-on-year to 6.97 billion yuan [1] - The average revenue per paying user per month increased from 10.8 yuan in the same period of 2024 to 11.9 yuan [1]