Investing.com -- Tencent Music Entertainment Group (NYSE:TME) shares climbed more than 2% in premarket trading Tuesday after the company reported better-than-expected results for the second quarter.\nTME posted Q2 earnings per share (EPS) of RMB 1.55, exceeding analyst expectations of RMB 1.42.\nRevenue rose roughly 18% to RMB 8.44 billion, also ahead of the RMB 7.97 billion consensus.\nOnline music services generated RMB 6.85 billion (US$957 million), up 26.4% year-over-year, while music subscription revenue climbed 17.1% to RMB 4.38 billion (US$611 million).\nMonthly average revenue per paying user (ARPPU) increased to RMB 11.7 from RMB 10.7 a year earlier.\n\"Our focus on product innovation to deliver immersive user experiences has driven solid growth in our online music business. This is reflected in the continued expansion of both our subscriber base and ARPPU, along with deeper user engagement,\" said Mr. Ross Liang, CEO of TME.\n\"We are especially pleased to see our SVIP subscribers recently surpass 15 million, a new milestone reflecting the deep trust and loyalty of our users.\"\nGross margin improved to 44.4% from 42% in the same quarter last year, supported by strong growth in music subscription and advertising revenues, as well as a lower revenue-sharing ratio in social entertainment services.

Tencent Music Enteratainment shares gain on better-than-expected Q2 results

Tencent Music Entertainment Group reported stronger-than-expected second-quarter earnings, with revenue rising 18% to RMB 8.44 billion and earnings per share reaching RMB 1.55, exceeding analyst forecasts. Online music services revenue increased 26.4% year-over-year to RMB 6.85 billion, while music subscription revenue grew 17.1% to RMB 4.38 billion. Monthly average revenue per paying user (ARPPU) rose to RMB 11.7 from RMB 10.7. The company attributed growth to product innovation, increased user engagement, and a rise in SVIP subscribers, which now exceed 15 million. Gross margin improved to 44.4% from 42% in the prior-year quarter, driven by stronger subscription and advertising revenues and a reduced revenue-sharing ratio in social entertainment services.