Tencent Music Entertainment Group Investor Presentation (NYSE: TME & HKEX: 1698) March 2026 Disclaimer 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 TME online music paying users (mm) TME online music paying ratio High-quality content and services continuously driving paying user loyalty 24.1% 127.4 1 Note: 1. Paying ratio is calculated by dividing the number of online music paying users by online music MAUs. 2. We adopted the nu ...

Core Points - Spotify announced updates to its AI policy to enhance transparency regarding AI-generated music and to combat spam [1][14] - The company will adopt the DDEX standard for labeling AI music in credits, which will provide detailed information on AI usage in music production [2][4] - Spotify clarified that unauthorized AI voice clones and deepfakes are prohibited on its platform [5][13] AI Policy Updates - The DDEX system will require labels and distributors to submit standardized AI disclosures, detailing the use of AI in music creation [2] - Spotify has received commitments from 15 labels and distributors to adopt the DDEX technology, signaling a potential industry shift [6] - A new music spam filter will be introduced to reduce spam content and improve user recommendations [7][11] Addressing Fraud and Misuse - The company aims to tackle "profile mismatches," where music is fraudulently uploaded to another artist's profile [12] - Spotify executives emphasized support for authentic and responsible AI use while aiming to eliminate fraudulent activities [13] - The rise of AI-generated music has led to increased scrutiny, with competitors like Deezer reporting that 18% of daily uploads are fully AI-generated [14]

Company Overview - TME boasts a large user base and innovative technology, holding 4 out of the top 5 music mobile apps in China[15] - The platform has an extensive content library with over 260 million music and audio tracks[15] - TME's online music subscribers reached 121 million in 4Q24, demonstrating a year-over-year growth of 134%[12] - The company reported total cash, cash equivalents, term deposits, and short-term investments of RMB 3758 billion as of December 31, 2024[14] - TME's last twelve months (LTM) total revenues as of December 31, 2024, were RMB 284 billion, with an adjusted net margin of 286%[14] Business Overview - TME has partnerships with hundreds of domestic and international music labels, offering a diversified music library[17] - The platform cultivates and empowers indie musicians through the Tencent Musician Platform[19] Financial Highlights - In 4Q24, revenue from music subscriptions reached RMB 403 billion, an increase of 180% year-over-year[37] - 4Q24 revenue from other online music services was RMB 180 billion, up 121% year-over-year[37] - The online music monthly ARPPU for 4Q24 was RMB 111, a 37% year-over-year increase[38] - Non-IFRS net profit for 4Q24 was RMB 240 billion, showing a significant increase of 430% year-over-year[38] - The company's gross margin for 4Q24 was 436%, a 53 percentage point increase year-over-year[37]