- TME
-11.92% - TME
-11.92%
Key Points
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Q2 revenue rose 6% to RMB 8.9 billion, while net profit increased to RMB 2.5 billion. Music-related services grew 11%, with membership revenue up 8% and Ximalaya contributing about RMB 400 million after its consolidation.
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Music IP and offline entertainment drove growth through concerts, artist merchandise, digital albums and other performance-related services, which recorded strong double-digit growth. Ximalaya also broadens Tencent Music’s audio offerings with audiobooks, podcasts, online novels and educational content.
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Advertising and margins remain under pressure, with management expecting gross and net margins to decline slightly in the second half. Tencent Music is prioritizing SVIP retention, AI-powered discovery and shareholder returns, having repurchased $400 million of ADSs in Q2 and remaining on track for its $1 billion buyback program.
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Tencent Music Entertainment Group (NYSE:TME) reported second-quarter 2026 revenue of RMB 8.9 billion, up 6% from a year earlier, as growth in music-related services and the consolidation of Ximalaya offset pressure in advertising. Net profit attributable to equity holders rose to RMB 2.5 billion from RMB 2.4 billion in the prior-year period.
Chief Financial Officer Shirley Hu said music-related services revenue increased 11% year over year, supported by membership services and offline performance-related offerings. Membership revenue reached RMB 4.8 billion, up 8% from a year earlier, while Ximalaya contributed about RMB 400 million to total revenue during the quarter.
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The company reported diluted earnings per ADS of RMB 1.57. Adjusted EBITDA rose 5% year over year to RMB 3.3 billion, while non-GAAP net profit attributable to equity holders increased 4% to RMB 2.7 billion.
Music IP and offline services drive growth
Executive Chairman Cussion Pang said marketing and consumption services continued to expand through concerts, merchandise and other IP-driven experiences. The company said IP-related consumption services, especially live events and artist merchandise, recorded strong double-digit year-over-year growth during the quarter.
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