The earnings call presented a strong positive outlook with significant growth in revenues and profitability, driven by strategic partnerships, content expansion, and SVIP membership growth. Despite a decline in social entertainment services revenue, the company's core music business showed robust performance, enhancing overall sentiment.

Company Guidance -

Q1 2025

During Tencent Music Entertainment Group's First Quarter 2025 Earnings Conference Call, the company reported robust financial performance, highlighting a 9% year-over-year growth in revenues, reaching RMB 7.4 billion. Online music revenues increased by 16% to RMB 5.8 billion, mainly driven by a 17% year-over-year rise in music subscription revenues. Monthly ARPPU also increased to RMB 11.4 from RMB 10.6 in Q1 2024. The company's non-IFRS net profit rose by 23% to RMB 2.2 billion, with a gross margin improvement to 44.1%, up 3.2 percentage points year-over-year. Tencent Music reiterated its commitment to expanding SVIP memberships and enhancing user engagement through various initiatives, including premium sound offerings and exclusive merchandise. The call also highlighted strategic efforts in the advertising sector, with a focus on innovative ad-supported models contributing to solid year-over-year growth in advertising revenues.

Strong Financial Performance

Revenues reached RMB 7.4 billion with a 9% year-over-year growth. Online music revenues increased by 16% year-over-year to RMB 5.8 billion. Music subscription revenues in Q1 of 2025 reached RMB 4.2 billion, representing a 17% increase year-over-year and a 5% rise sequentially.

Increased Profitability

Gross margin improved to 44.1%, increasing 3.2 percentage points year-over-year. Non-IFRS net profit increased by 23% to RMB 2.2 billion, and non-IFRS net profit attributable to equity holders increased by 25% to RMB 2.1 billion.

SVIP Membership Growth

SVIP membership program continued to expand, with premium sound quality and audio effect offerings penetrating about 15% of the SVIP user base.

Strategic Partnerships and Content Expansion

Renewed multiyear contracts with Sony Music Entertainment and expanded collaborations with Emperor Entertainment Group and Rock Records. Launched merchandise collaborations with South Korean labels and Japan's ACG label.

Advertising Revenue Growth

Advertising revenues achieved strong year-over-year growth, primarily due to the growth in ad-supported model revenues with more interactive features.

Tencent Music Entertainment Group Class A (HK:1698) Earnings, Revenues Date & History

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HK:1698 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 18, 2025	2025 (Q2)	0.77 / -	0.581	―	―	―
May 13, 2025	2025 (Q1)	0.68 / 1.50	0.491	205.30% (+1.01)	―	―
Mar 18, 2025	2024 (Q4)	0.65 / 0.68	0.451	50.33% (+0.23)	―	―
Nov 12, 2024	2024 (Q3)	0.61 / 0.54	0.396	37.12% (+0.15)	―	―
Aug 13, 2024	2024 (Q2)	0.59 / 0.58	0.44	32.05% (+0.14)	―	―
May 13, 2024	2024 (Q1)	0.50 / 0.49	0.411	19.46% (+0.08)	―	―
Mar 19, 2024	2023 (Q4)	0.49 / 0.45	0.411	9.73% (+0.04)	―	―
Nov 14, 2023	2023 (Q3)	0.42 / 0.40	0.367	7.90% (+0.03)	―	―
Aug 15, 2023	2023 (Q2)	0.48 / 0.44	0.306	43.79% (+0.13)	―	―
May 16, 2023	2023 (Q1)	0.40 / 0.41	0.215	91.16% (+0.20)	―	―

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
May 13, 2025	HK$57.00	HK$54.50	-4.39%
Mar 18, 2025	HK$47.10	HK$50.46	+7.13%
Nov 12, 2024	HK$44.43	HK$44.68	+0.56%
Aug 13, 2024	HK$50.46	HK$52.83	+4.70%

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.