Tencent Music Entertainment has reported second-quarter results that exceeded market expectations, driven by a larger content library, increased user engagement, and solid gains in its online music subscriber base.
The Chinese streaming platform’s revenue for the quarter reached 8.44 billion yuan ($1.17 billion), up 17.9% year-on-year and above analyst forecasts of 7.96 billion yuan. Music subscription revenue grew 17.1% to 4.38 billion yuan, while social entertainment revenue declined 8.5% to 1.59 billion yuan. Adjusted profit came in at 1.66 yuan per American Depository Share, surpassing the expected 1.46 yuan.
Tencent Music has been investing heavily in expanding its offerings beyond traditional streaming, adding long-form audio such as podcasts and audiobooks. The company’s Super VIP program, serving roughly 15 million subscribers, bundles premium audio quality, online karaoke, and exclusive events to boost retention and engagement.
Strategic partnerships have also played a role in driving growth, with new licensing deals signed with The Black Label and H MUSIC to meet rising K-pop demand, as well as an extended collaboration with Chinese artist Wang Feng.
In June, Tencent Music announced plans to acquire Chinese audio platform Ximalaya for approximately $2.4 billion in cash and stock, a move aimed at deepening its catalog and attracting more paying users.
Analysts suggest that the company’s focus on product innovation, diversified content, and AI-powered personalization will help sustain growth momentum in the quarters ahead.
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IMAGE: Reuters
