Tencent Music Entertainment Group Investor Presentation (NYSE: TME & HKEX: 1698) November 2025 Disclaimer This presentation has been prepared by Tencent Music Entertainment Group (the "Company") solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctnes ...

Core Insights - Tencent Music Entertainment Group (TME) reported strong financial results for Q3 2025, driven by growth in online music services and innovative content offerings [3][7][12]. Financial Highlights - Total revenues reached RMB 8.46 billion (US$1.19 billion), a 20.6% year-over-year increase [7][12]. - Revenues from online music services were RMB 6.97 billion (US$979 million), reflecting a 27.2% year-over-year growth [7][12]. - Music subscription revenues grew to RMB 4.50 billion (US$632 million), marking a 17.2% year-over-year increase [7][12]. - Net profit attributable to equity holders was RMB 2.15 billion (US$302 million), a 36.0% year-over-year growth [7][19]. - Monthly ARPPU increased to RMB 11.9 from RMB 10.8 in the same period of 2024, representing a 10.2% growth [4][7]. Operational Highlights - Monthly Active Users (MAUs) for online music decreased to 551 million, down 4.3% year-over-year [4]. - Paying users for online music increased to 125.7 million, a 5.6% year-over-year growth [4]. - The company expanded its music offerings across various genres and languages, enhancing its content ecosystem [5][8]. Strategic Initiatives - TME enhanced partnerships with renowned labels and artists, including contracts with Korean label DREAMUS and collaborations with Blizzard Entertainment [8]. - The company successfully organized large-scale concert tours, including G-DRAGON's concerts, which attracted over 150,000 attendees [8][9]. - TME launched the TMElive International Music Awards (TIMA), showcasing 22 artists and enhancing its industry influence [8][9]. User Engagement and Innovation - The company introduced differentiated membership offerings, improving user service and loyalty [10][11]. - Enhanced streaming experiences and artist-related benefits contributed to increased SVIP penetration and ARPPU [11][16]. - TME's innovative features, such as AI-generated lyrics and immersive sound technologies, have improved user engagement [16].

Company Overview - TME is committed to the healthy development of China's online music industry[7] - TME has a large user base, innovative product matrix, comprehensive content library, and diversified monetization methods[11] - TME has over 260 million music and audio tracks[12, 15] and over 580,000 indie musicians[12] Business Overview - TME has partnerships with hundreds of domestic and international music labels[15] - TME cultivates and empowers indie musicians through the Tencent Musician Platform[17] - TME utilizes LLMs & industry-pioneered licensed AI features to enhance promotion, distribution and copyright protection[18] - TME's platform caters to varying needs of music consumers, with online music paying users reaching 122.9 million and a paying ratio of 22.1% in 1Q25[8, 24] Financial Highlights - TME's total cash, cash equivalents, term deposits, and short-term investments amounted to RMB 37.67 billion as of March 31, 2025[12, 45] - TME's LTM 2025 total revenues were RMB 29.0 billion with a 29.5% LTM 2025 adjusted net margin[12] - TME's 1Q25 revenue from music subscriptions was RMB 5.80 billion, a 16.6% year-over-year increase[34] - TME's 1Q25 online music monthly ARPPU was RMB 11.4, a 7.5% year-over-year increase[12, 34] - TME's 1Q25 Non-IFRS net profit was RMB 2.23 billion, a 22.8% year-over-year increase[34]

Core Points - Tencent Music Entertainment Group (TME) has filed its annual report on Form 20-F with the SEC, including audited financial statements for the fiscal year ended December 31, 2024 [1] - The annual report is accessible on TME's investor relations website and the SEC's website, with hard copies available to shareholders upon request [2] - TME is recognized as the leading online music and audio entertainment platform in China, operating popular music apps such as QQ Music, Kugou Music, Kuwo Music, and WeSing [3]