Tencent Music Entertainment Group, China's biggest online music entertainment platform, has posted solid 2025 Q1 results.
Why it matters:
Tencent Music operates the streaming apps QQ Music, Kugou Music and Kuwo Music, as well as karaoke app WeSing.
Its platform comprises online music, online karaoke and "music-centric live streaming services".
Q1 snapshot:
Total revenue hit $1.01 billion, an 8.7% gain YOY.
Operating profit was up 146.9% YOY, reaching $666 million.
Total net profit reached $605 million.
Revenue from music subscriptions was up 16.6% YOY to $581 million, with 122.9 million paying users.
Average revenue per paying user (ARPPU) was up 7.5% to $1.57.
Overall revenue from online music services was up 15.9% to $800 million.
Revenue from social entertainment services dipped 11.9% to $214 million.
Behind the figures:
As per Music Business Worldwide, the ARPPU growth was due to increased uptake of the Super VIP (SVIP) subscription, which is five times more expensive than a standard subscription.
SVIP offers premium audio quality; album discounts; special badges; early access to live events; merchandise; long-form audio content.
As per Variety, another major profit driver was TME's receipt of 2% equity interest in Universal Music Group "through a distribution in-kind from an associate", worth $327 million.
