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NetEase Cloud Music Inc. Reports First Half 2025 Financial Results
Prnewswire· 2025-08-14 09:37
Core Viewpoint - NetEase Cloud Music Inc. reported its financial results for the first half of 2025, showing a mixed performance with a decrease in overall revenue but significant growth in operating profit and net profit, driven by a focus on core music services and subscription-based revenue growth. Financial Performance - Revenue for the first half of 2025 was RMB3.83 billion, a decrease of 6.0% compared to RMB4.07 billion in the same period of 2024 [5] - Gross profit was RMB1.39 billion, a slight decrease of 2.3% from RMB1.43 billion in the same period of 2024, but gross margin improved to 36.4% from 35.0% [5][11] - Operating profit increased by 40.8% to RMB844.5 million from RMB599.9 million in the same period of 2024 [5] - Profit for the period reached RMB1.88 billion, compared to RMB809.9 million in the same period of 2024 [12] - Adjusted operating profit was RMB905.4 million, an increase of 35.0% compared to RMB670.9 million in the same period of 2024 [12] - Adjusted net profit reached RMB1.95 billion, compared to RMB880.7 million in the same period of 2024 [12] Revenue Breakdown - Revenue from online music services was RMB3.0 billion, an increase of 15.9% compared to RMB2.6 billion for the same period of 2024 [4] - Revenue from membership subscriptions increased to RMB2.5 billion from RMB2.1 billion for the same period of 2024 [4] - Revenue from social entertainment services decreased to RMB859.8 million from RMB1,510.8 million for the same period of 2024, attributed to a more prudent operational approach [5] User Engagement and Community - Total monthly active users (MAUs) showed steady growth, with a daily active user/monthly active user (DAU/MAU) ratio consistently exceeding 30% [7] - Users spent more time listening to music on the mobile app, indicating higher engagement [7] - The platform had over 819,000 registered independent artists contributing 4.8 million music tracks by June 2025 [17] Content and Product Innovation - The company expanded its music label catalogue, securing partnerships with popular K-Pop labels and renowned Chinese artists [19] - Enhanced product features, such as the "Magic Light Player," improved the music listening experience [9][27] - The introduction of new roles for music creators, such as AI Musician and Trainee Musician, aims to nurture emerging talent [20] Strategic Focus - The company plans to deepen collaborations with copyright holders and enhance its differentiated content offerings [13][15] - Future initiatives include optimizing the music listening experience and improving profitability through cost optimization and enhanced operating efficiency [18]
X @The Wall Street Journal
The Wall Street Journal· 2025-07-25 13:47
Songs that dominated last year continue to hold sway over the charts. The widespread adoption of music streaming makes it increasingly clear that some songs are getting replayed for months and months. https://t.co/Ppfw2yEQl3 ...