Release Date: August 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Tencent Music Entertainment Group (NYSE:TME) reported a record high total revenue of 8.4 billion RMB, marking an 18% year-over-year increase.
The music subscription business remains a core growth driver, with a 17% year-over-year increase in subscription revenues, reaching 4.4 billion RMB.
The company has successfully expanded its content ecosystem through strategic partnerships with well-known Korean labels and Chinese artists, enhancing its K-pop offerings.
TME’s innovative advertising formats and artist-related merchandise sales have contributed to strong growth in advertising revenue.
ADVERTISEMENTThe company has demonstrated robust growth in its online music platform, with user average time spent reaching a record high and SVIP subscribers exceeding 15 million.
Social entertainment services and other revenues decreased by 9% year-over-year, primarily due to adjustments in live streaming and interactive functions.
The gross margin for fan economy and offline concerts is relatively low, which could impact the overall gross margin of the company.
There are seasonal fluctuations in revenue from fan economy and offline concerts due to artist scheduling and venue selection.
The company faces challenges in ensuring integrated development for both content and privileges as it expands its platform.
The ad-based membership is still in its infancy stage, and its contribution to revenue growth is currently limited.
Q: Can you provide an outlook for the second half of the year in terms of revenue and profit? A: We are encouraged by our solid performance this quarter, with strong top and bottom-line results. Our music subscription business remains robust, and we expect high-quality growth to continue. Our subscriber base has reached over 124 million, and while growth may fluctuate, we are confident in its continued expansion. Additionally, our non-subscription services, such as advertising and concerts, are showing exciting growth. We anticipate revenue for the full year of 2025 to exceed previous expectations, with room for bottom-line improvement. (Respondent: Unidentified_2)
Q: Can you share insights on the traction and future potential of the recently launched Bubble product? A: We are pleased with the launch of Bubble, which addresses the need for fans to communicate with artists. The product has been well-received, especially for its translation features between Korean and Chinese. We plan to introduce Chinese artists to the platform, enhancing user engagement. Bubble is expected to become a key growth driver for our SVIP offerings, and we are confident in its potential for future commercialization. (Respondent: Unidentified_7)
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
