NetEase Cloud Music Inc. Reports Fiscal Year 2025 Financial Results
Prnewswire·2026-02-11 09:55

Core Insights - NetEase Cloud Music Inc. reported a slight revenue decrease of 2.4% in fiscal year 2025, totaling RMB 7.8 billion compared to RMB 8.0 billion in 2024, while adjusted net profit increased significantly to RMB 2.86 billion from RMB 1.7 billion in 2024 [1][2][3] Financial Performance - Revenue for fiscal year 2025 was RMB 7,759,450, a decrease from RMB 7,950,146 in 2024 [1] - Gross profit increased to RMB 2,769,592 from RMB 2,681,512 in 2024, resulting in a gross margin of 35.7%, up from 33.7% [2] - Operating profit rose by 38.5% year on year to RMB 1,621,952, driven by business scale growth and improved online music monetization [2] - Revenue from online music services increased by 12.0% to RMB 6.0 billion, with membership subscription revenue rising to RMB 5.1 billion from RMB 4.5 billion [1][2] Business Overview - The company focused on enhancing user experience and engagement through improved music offerings and community features, resulting in a year-over-year growth in active user base and engagement [1][2] - The DAU/MAU ratio remained above 30%, indicating strong user retention and engagement [1] - The company expanded its music library, introducing content from Korean labels and promoting original Chinese music, while also enhancing partnerships with copyright holders [2][3] Product Innovation - The company upgraded its core product framework and introduced new features such as Climber, an AI-powered recommendation model, and various immersive audio-visual experiences [2][3] - New features included the "Magic Light Player" and "Automix," which enhanced the music listening experience [3] - The company also expanded its audio content offerings, including podcasts and audiobooks, to cater to diverse user interests [3] Community and Engagement - NetEase Cloud Music continued to nurture its independent artist ecosystem, with over 1 million independent artists contributing more than 5.6 million tracks [2][3] - The company launched initiatives to connect musicians with brands and enhance their commercial reach, including collaborations for customized songs and promotional activities [2][3] - The "Original Sound Promoters" campus ambassador program was introduced to promote original content and build a music discovery network among university students [3]