TME

NYSE:TME

Tencent Music Entertainment Group

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  • Stock

13.37

−0.37%

−12.02

USD last updated 13/08 01:59:42

Last Close

25.39

12/08 22:34

Market Cap

24.25B

Beta: 0.80

Volume Today

1.59M

Avg: 5.88M

PE Ratio

21.71

PFCF: 14.56

Chinese tech giant Tencent reported strong second-quarter financial results, with revenue rising 15% to 184.5 billion yuan ($25.7 billion), exceeding analyst estimates of 178.5 billion yuan. Gaming revenue increased 17% domestically and 35% internationally, while marketing services revenue grew 20% year-on-year due to AI-driven advertising. Net profit reached 55.6 billion yuan, surpassing expectations of 52.3 billion yuan. Tencent maintains sufficient inventory for its AI operations despite uncertainty over U.S. AI chip imports, citing ongoing negotiations between China and the U.S. The company has scaled back capital expenditure to 19.1 billion yuan in Q2, down from previous quarters, and is adopting a more measured approach to AI spending. Tencent has developed its own large language model, Hunyuan Turbo S, and integrates third-party models like DeepSeek across its platforms, including WeChat, which has over 1 billion monthly active users.

reuters.com

Tencent reported a 15% increase in second-quarter revenue in 2025, driven by strong performance in its gaming unit and AI-driven improvements to its advertising and Weixin platforms. Domestic gaming revenue rose 17% year-on-year to 40.4 billion yuan, fueled by the launch of 'Delta Force' and popular titles like 'Honor of Kings' and 'VALORANT'. International gaming revenue increased by 35% to 18.8 billion yuan, supported by 'PUBG Mobile' and 'Dune: Awakening'. Marketing services revenue grew 20% to 35.8 billion yuan due to AI enhancements in advertising and transaction ecosystems. The company's capital expenditures surged 119% to 19.1 billion yuan, primarily for AI upgrades across gaming, social media, and cloud services. Tencent Music posted strong results with 124 million subscribers, up from 123 million, and is expected to deliver high-quality growth in subscription and fan economy revenues. Tencent is expanding its cloud computing capabilities into Europe, positioning itself against major U.S. hyperscalers like Amazon, Microsoft, and Google.

cnbc.com

Tencent Holdings reported a 15% year-on-year revenue increase to RMB 184.5 billion in Q2 2025, driven by strong performance in its gaming segment and aggressive AI-driven diversification. The gaming business, particularly through Value-Added Services, contributed 51% of revenue and is projected to grow by 11% YoY. Tencent launched the Hunyuan World Model 1.0 AI system and expanded AI integration into Weixin (WeChat) via the Yuanbao chatbot, enhancing user engagement and advertising efficiency. The company also acquired a 25% stake in a new Ubisoft subsidiary for €1.16 billion to strengthen its global IP portfolio. Tencent Music reported a 17.9% YoY revenue increase to RMB 8.44 billion, fueled by growth in online music services and cross-border partnerships. Despite regulatory and geopolitical risks, Tencent maintains a strong balance sheet with RMB 34.92 billion in cash and a CNY 102.33 billion share repurchase program, supporting long-term innovation and stability.

ainvest.com

A comprehensive overview of second-quarter 2025 earnings from major music companies, including Spotify, Universal Music Group, Cumulus Media, Deezer, HYBE, iHeartMedia, Live Nation, Reservoir Media, SiriusXM, SM Entertainment, Sony Music, Sonos, Tencent Music Entertainment, and Warner Music Group. Results show mixed performance: some companies reported strong revenue and subscriber growth, while others faced declining revenue, margin pressures, or weak guidance. Key highlights include Spotify's solid growth but disappointing investor guidance, Universal Music Group's revenue and subscription growth, HYBE's strong performance driven by global tours and BTS-related engagement, and Live Nation's record concert revenue. Several companies noted challenges in advertising, macroeconomic conditions, and cost management.

billboard.com

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.

investing.com

    Description

    Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover and listen to music in personalized ways; and WeSing, which enables users to have fun by singing and interacting wi...Show More

    Earnings

    Earnings per Share (Estimate*)

    0.050.10.150.22020-05-112021-05-172022-05-162024-03-192024-11-12

    Revenue (Estimate*)

    2B4B6B8B2020-05-112021-05-172022-05-162024-03-192024-11-12

    *Estimate based on analyst consensus