Logo

TME

Tencent Music Entertainment Group

TME

Tencent Music Entertainment Group • NYSE
$18.45 ▲ 2.56% (+0.46)
Market Cap $28.28 B
52w High $26.70
52w Low $10.26
Dividend Yield 0.18%
P/E 18.83
Volume 3.36M
Outstanding Shares 1.53B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $8.463B ▲ $972M ▲ $2.153B ▼ 25.44% ▼ $1.4 ▼ $2.689B ▼
Q2-2025 $8.442B ▲ $771M ▲ $2.409B ▼ 28.536% ▼ $1.58 ▼ $3.173B ▲
Q1-2025 $7.356B ▼ $-1.594B ▼ $4.291B ▲ 58.333% ▲ $2.8 ▲ $2.348B ▲
Q4-2024 $7.458B ▲ $844M ▼ $1.957B ▲ 26.24% ▲ $1.26 ▲ $2.329B ▲
Q3-2024 $7.015B $847M $1.583B 22.566% $1 $2.025B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $22.32B ▲ $104.866B ▼ $19.437B ▼ $82.751B ▼
Q2-2025 $22.196B ▼ $107.873B ▲ $21.498B ▼ $83.878B ▲
Q1-2025 $26.691B ▼ $98.084B ▲ $22.885B ▲ $73.237B ▲
Q4-2024 $27.209B ▼ $90.444B ▲ $20.718B ▲ $67.863B ▲
Q3-2024 $28.563B $84.613B $19.384B $63.485B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $2.153B ▼ $3.683B ▲ $-1.244B ▼ $-2.122B ▼ $256M ▲ $3.683B ▲
Q2-2025 $2.409B ▲ $1.638B ▼ $-633M ▲ $-2.056B ▼ $-1.023B ▲ $1.638B ▼
Q1-2025 $0 ▼ $2.519B ▲ $-3.221B ▼ $-456M ▲ $-1.142B ▼ $2.519B ▲
Q4-2024 $1.957B ▲ $2.48B ▲ $1.324B ▲ $-815M ▲ $2.955B ▲ $2.161B ▼
Q3-2024 $1.583B $2.165B $-3.337B $-882M $-2.042B $2.165B

Five-Year Company Overview

Income Statement

Income Statement Revenue has been roughly stable over the past few years, but profits have improved clearly. The company has been squeezing more earnings out of each unit of sales, with gross margins and operating margins trending up. This suggests better cost control, a healthier mix of higher‑margin services (like subscriptions and value‑added offerings), and more disciplined spending. After a dip earlier in the period, net income and earnings per share have moved steadily higher, pointing to a business that is maturing, more efficient, and less reliant on aggressive top‑line growth to generate solid profitability.

Balance Sheet

Balance Sheet The balance sheet looks robust and conservative. Total assets and shareholder equity have been climbing, which points to a company that is steadily building its financial base. Cash levels are strong relative to its modest and essentially flat debt load, implying a net cash position and solid financial flexibility. Overall, leverage appears low, and there is no obvious sign of balance‑sheet strain, giving the company room to invest, weather downturns, or navigate regulatory and competitive shocks.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has grown meaningfully over the period, and free cash flow has improved even more, helped by relatively light capital spending needs. This means a large portion of reported profits is actually turning into cash, which is not always the case for digital platforms. The business appears capital‑light and cash‑rich, giving management many options for reinvestment, partnerships, or returning value to shareholders if they choose, while still maintaining a cushion for uncertainty.

Competitive Edge

Competitive Edge Tencent Music occupies a dominant position in China’s online music and audio space, anchored by its multiple apps and deep integration with Tencent’s social platforms. Its scale, strong brands, and large user base reinforce powerful network effects: artists want to be where the listeners are, and listeners gravitate to where the content and social features are richest. A broad and partly exclusive content library, strong relationships with labels and artists, and a mix of music streaming, karaoke, long‑form audio, and live events all help differentiate it from pure‑play streaming rivals. That said, it still faces ongoing competitive pressure from other music and short‑video platforms, as well as regulatory scrutiny in China, which can influence how it uses its ecosystem advantages.

Innovation and R&D

Innovation and R&D Innovation is tightly woven into Tencent Music’s strategy. It is leaning heavily on artificial intelligence and large language models to improve recommendations, personalize experiences, and even help create audio content such as songs and audiobooks. The company is also experimenting with new advertising formats, premium membership tiers, and social entertainment tools to deepen engagement and raise spending per user. Beyond core streaming, it is expanding into karaoke, podcasts, audiobooks, live and offline concerts, merchandise, and in‑car entertainment integrations. These initiatives broaden the ecosystem and create more touchpoints with users, but they also introduce execution risk: the company needs to continually balance experimentation with focus and ensure that new features actually enhance, rather than clutter, the user experience.

Summary

Overall, Tencent Music looks like a financially solid, cash‑generative digital entertainment platform that has shifted from pure growth to more profitable, efficient operations. Revenue growth has been modest, but margins, earnings, and cash flows have strengthened, supported by a strong balance sheet and low leverage. Strategically, its deep integration with Tencent’s broader ecosystem, network effects, and diversified monetization across streaming, social entertainment, and live experiences give it a strong competitive footing within China. At the same time, it operates in a fast‑moving and heavily regulated market, with intense competition and changing user habits. Future performance will depend on its ability to keep innovating in AI‑driven experiences, premium tiers, and new formats like long‑form audio and in‑car services, while managing regulatory, content‑cost, and platform‑fatigue risks. The story is less about chasing explosive revenue growth and more about steadily monetizing a powerful, evolving music and audio ecosystem.

NEWS

November 12, 2025 · 4:00 AM UTC

Tencent Music Entertainment Group Announces Third Quarter 2025 Unaudited Financial Results

Read more

October 13, 2025 · 8:30 AM UTC

IceCure's ProSense® Showcased at TME Fall Summit: "Take the Lead in Breast Cancer Care" Roundtable Highlighting Cryoablation Advances

Read more

September 26, 2025 · 8:00 AM UTC

Perimeter Showcases Innovative Imaging Technology at Aptitude Health/TME's Fall Summit on Breast Cancer Care

Read more

September 23, 2025 · 6:00 AM UTC

Tencent Music Entertainment Group Announces New Audit Committee Member

Read more