Tencent Music Entertainment Group Class A (HK:1698)
:1698
Earnings Data
Report Date
May 18, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.77Last Year’s EPS
1.5Same Quarter Last Year
Strong Buy
Based on 12 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a predominantly positive financial and operational picture: solid top-line growth (Q4 +15%, FY +16%), stronger gross margins (+1.1–1.9pp YoY), expanding non-subscription monetization (Q4 +41% in non-subscription music services) and successful scaling of SVIP (20M+). Material achievements in IP monetization — live events, merchandise and original content — and broad AI/product adoption further underpin growth. Notable negatives include a high Q4 effective tax rate (70.5%), a Q4 decline in social entertainment (-5% YoY), one-off gains that boosted full-year net profit, management’s warning of short-term subscription pressure from competition and AI-related risks to original content and royalties. On balance the positives (revenue, margin expansion, diversified monetization and strong cash/dividend) outweigh the challenges, though some execution and regulatory/AI risks remain.Company Guidance
Strong Revenue Growth (Q4 and FY2025)
Total revenues for Q4 2025 grew 15% YoY to RMB 8.6 billion; full-year 2025 total revenues rose 16% YoY to RMB 32.9 billion, driven by subscription, advertising and IP-related monetization.
Online Music Services and Subscription Momentum
Full-year online music services revenue increased 23% YoY to RMB 26.7 billion. Music subscription revenues were RMB 17.7 billion for 2025, up 16% YoY; Q4 subscription revenue was RMB 4.6 billion, up 13% YoY.
Rapid Growth in Non-Subscription Music Offerings
Revenues from music services other than subscription jumped 41% YoY in Q4 2025 to RMB 2.5 billion, reflecting strong growth in advertising, offline performances and artist-related merchandise.
Improved Profitability and Margins
Q4 2025 gross margin was 44.7%, up 1.1 percentage points YoY; full-year gross margin improved to 44.2%, up 1.9 percentage points YoY. Q4 net profit rose 10% YoY to RMB 2.3 billion and non-IFRS net profit rose 8% YoY to RMB 2.6 billion.
Material EPS and Non-IFRS Earnings Upside
Diluted EPS for Q4 2025 was RMB 1.41, up 12% YoY; non-IFRS diluted EPS was RMB 1.60, up 9% YoY. Full-year non-IFRS net profit increased 22% YoY to RMB 9.9 billion (non-IFRS attributable RMB 9.6 billion, +25% YoY).
Strong Cash Position and Shareholder Return
Combined cash, cash equivalents, term deposits and short-term investments were RMB 38.0 billion as of Dec 31, 2025 (up from RMB 36.1 billion on Sept 30, 2025). Declared cash dividend of USD 0.24 per ADS (~USD 368 million) for 2025.
SVIP Scale and Membership Innovation
SVIP users surpassed 20 million, with ARPPU trending slightly upward. Company launched an AD-supported subscription plan gaining early traction and increasingly differentiated multi-tiered membership benefits to boost retention and monetization.
Content & IP Execution — Events, Merch and Originals
IP-driven initiatives performed strongly: hosted G-DRAGON 20-concert tour attracting >260,000 fans (75,000+ in two Taipei shows in Q4); more than doubled revenues from IP-related merchandise and fan consumption in 2025; produced high-performing original content (e.g., Xiao Zhan track with 100M social views in one day; 14-track OST topping charts).
AI and Product Innovation Adoption
Broad AI integration: one-stop AI music production platform used by >10 million users and >150,000 professional creators; Yuanbao and AI agent embedded into QQ Music to drive discovery, conversion and operational efficiency.
Tencent Music Entertainment Group Class A (HK:1698) Earnings, Revenues Date & History
HK:1698 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HK:1698 Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 17, 2026 | HK$55.41 | HK$55.75 | +0.62% |
Nov 12, 2025 | HK$81.53 | HK$82.51 | +1.19% |
Aug 12, 2025 | HK$84.65 | HK$86.07 | +1.67% |
May 13, 2025 | HK$55.56 | HK$53.12 | -4.39% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Tencent Music Entertainment Group Class A (HK:1698) report earnings?
Tencent Music Entertainment Group Class A (HK:1698) is schdueled to report earning on May 18, 2026, After Close (Confirmed).
What is Tencent Music Entertainment Group Class A (HK:1698) earnings time?
Tencent Music Entertainment Group Class A (HK:1698) earnings time is at May 18, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Tencent Music Entertainment Group Class A stock?
The P/E ratio of Tencent Music Entertainment Group Class A is N/A.
What is HK:1698 EPS forecast?
HK:1698 EPS forecast for the fiscal quarter 2026 (Q1) is 0.77.
