Introduction to Tencent Music Entertainment Group
Tencent Music Entertainment Group, China’s leading online music and audio platform, has reported impressive sales of $1.18 billion in the second quarter of 2025, compared to the previous year. This performance was driven by the growth of online music services, particularly subscriptions and new SVIP premium offers, while social entertainment services continued to thrive.
Online Music Services and SVIP
The company’s online music services saw a significant increase of 26.4% to $957 million. Music subscription turnover reached $611 million, which was 17.1% higher compared to the previous year. The monthly average revenue per paying user rose to approximately $1.63, up from $1.49 in the previous year. The number of paying users increased by 6.3% to 124.4 million, while the monthly active user base grew by 3.2% to 553 million. SVIP, or "Super VIP," is Tencent Music’s high-priced premium membership that offers exclusive benefits such as extended audio quality, early concert ticket access, exclusive digital albums, and artist collectibles.
Financial Performance
Tencent Music’s net profit was $336 million, representing a 43.2% increase compared to the same period in the previous year. The non-IFRS net profit was $359 million, which corresponds to a 37.4% increase. The operating profit rose by 35.5% to $416 million, with the gross margin increasing from 42.0% to 44.4%. The company’s operating costs were $161 million, which represents a lower percentage of sales compared to the previous year. Tencent Music ended the quarter with $4.87 billion in cash, equivalents, and short-term investments.
Expanding Content Ecosystem
Tencent Music has expanded its content ecosystem through new deals with K-Pop company The Black Label and HM Music, as well as a collaboration with Chinese star Wang Feng. The company has also teamed up with SM Entertainment to publish NCT China’s Chinese EP "Lucid," which was supported by extensive advertising campaigns. Additionally, Tencent Music created and promoted the title song for "The Lychee Road" with Zhejiang Satellite TV.
Live Events and Product Innovation
Live events have contributed significantly to the company’s growth, with G-Dragon’s concert tour in Macau drawing and selling out 36,000 fans. Tencent Music has also organized concerts with Fiona Sit, Tia Ray, and rapper Gai, and supported over 300 offline shows through its live and Buff-Live platforms. The company has introduced new features, including Viper HiFi and one-click audio improvement 2.0 for Kugou music, as well as an AI choir tool. SVIP users have enjoyed exclusive benefits such as early concert ticket access, digital albums, and collector’s star cards from artists like A-Lin, JJ Lin, and G-Dragon.
CEO Comments
CEO Cussion Pang stated, "We achieved high-quality growth in the second quarter and achieved a solid increase in sales and profitability in the year. While our music subscription business, a core growth driver, remained strong, our expanding suite of music-related services – including concerts and artist merchandise – gained momentum." CEO Ross Liang added, "Our focus on product innovations to provide immersive user experiences has driven solid growth in our online music business. We are particularly pleased that our SVIP subscribers have recently exceeded 15 million, a new milestone that reflects the deep trust and loyalty of our users."
