Financial Performance - Total revenue for Q3 2025 was RMB 8.46 billion (USD 1.19 billion), representing a year-over-year increase of 20.6%, primarily driven by strong growth in online music service revenue[6]. - Online music service revenue grew by 27.2% year-over-year to RMB 6.97 billion (USD 0.979 billion), with subscription revenue increasing by 17.2% to RMB 4.50 billion (USD 0.632 billion)[6]. - Net profit attributable to equity holders was RMB 2.15 billion (USD 0.302 billion), a year-over-year increase of 36.0%[6]. - Total revenue for Q3 2025 reached RMB 8.46 billion (USD 1.19 billion), an increase of RMB 1.45 billion or 20.6% compared to RMB 7.02 billion in Q3 2024[15]. - Net profit for Q3 2025 was RMB 2.21 billion (USD 311 million), with a year-on-year increase of 26.4%[19]. - Non-IFRS net profit for the three months ended September 30, 2024, was RMB 1,709 million, representing a year-over-year increase of 29.3%[30]. - The adjusted net profit for the nine months ended September 30, 2024, was RMB 5,737 million, reflecting a 27.7% increase year-over-year[33]. - Basic earnings per share for the three months ended September 30, 2024, was RMB 0.51, compared to RMB 0.40 in the same period last year[31]. - The company reported a basic earnings per share of RMB 0.59 for the three months ended September 30, 2024, compared to RMB 0.78 in 2025[33]. - The diluted earnings per American Depositary Share (ADS) for the nine months ended September 30, 2025, was USD 0.64, compared to USD 0.65 in the same period of 2024[33]. User Engagement - The number of monthly active users for online music services decreased by 4.3% year-over-year to 551 million, while the number of paying users increased by 5.6% to 125.7 million[7]. - Average revenue per paying user per month increased by 10.2% year-over-year to RMB 11.9[7]. - A differentiated membership system has been implemented to enhance user experience and loyalty[12]. - The average monthly revenue per paying user increased from RMB 10.8 in Q3 2024 to RMB 11.9 in Q3 2025, reflecting the expansion of super member benefits[17]. Operational Costs - Operating costs increased by 18.8% year-on-year to RMB 4.78 billion (USD 672 million), primarily due to higher costs associated with offline performances and IP-related expenses[16]. - Operating expenses rose by 7.6% year-on-year to RMB 1.31 billion (USD 184 million), with operating expenses as a percentage of total revenue decreasing from 17.4% to 15.5%[18]. - Sales and marketing expenses increased by 18.2% year-on-year to RMB 260 million (USD 37 million), driven by higher content and channel promotion costs[21]. Cash and Investments - Cash, cash equivalents, and short-term investments totaled RMB 36.08 billion (USD 5.07 billion) as of September 30, 2025[6]. - Cash and cash equivalents totaled RMB 36.08 billion (USD 5.07 billion) as of September 30, 2025, up from RMB 34.92 billion as of June 30, 2025[20]. - Tencent Music's cash and cash equivalents decreased by RMB 2,054 million in the three months ended September 30, 2025, but increased to RMB 11,255 million by the end of the period[38]. - The company incurred a net cash outflow from investing activities of RMB 1,244 million for the three months ended September 30, 2025, down from RMB 3,337 million in the same period of 2024[38]. Strategic Initiatives - The company plans to continue expanding its music service offerings and enhance user engagement through innovative and personalized experiences[7]. - Strategic partnerships with well-known labels and artists have been deepened to enrich the music library, including collaborations with DREAMUS and KING RECORDS[10]. - The company is expanding its concert operations and services into international markets, leveraging its established capabilities[11]. - The "Music Space" public welfare project attracted 380,000 participants, enhancing its influence and promoting music accessibility[22]. Future Outlook - The company anticipates continued growth in online music services and social entertainment revenue in the upcoming quarters[28]. - The company emphasizes the importance of non-IFRS measures for understanding operational performance and trends[25]. - The company encourages investors to review complete financial information rather than relying solely on individual financial metrics[26]. Assets and Equity - The total assets of Tencent Music as of December 31, 2024, were RMB 90,444 million, which increased to RMB 104,866 million by September 30, 2025[36]. - The total equity attributable to the company's equity holders increased from RMB 67,863 million as of December 31, 2024, to RMB 82,751 million by September 30, 2025[37]. - Tencent Music's goodwill increased from RMB 19,647 million as of December 31, 2024, to RMB 20,517 million by September 30, 2025[36]. Cash Flow - Operating cash inflow for the three months ended September 30, 2025, was RMB 3,683 million, representing a significant increase from RMB 2,165 million in the same period of 2024[38].
腾讯音乐(01698) - 2025 Q3 - 季度业绩