Photo: AP

Tencent Music Entertainment, a top music platform in China, shared its financial results for the second quarter of 2025. This quarter brought strong growth in revenue compared to the same period last year.

The company expanded due to more paying users and increasing interest in longer audio formats like podcasts and audiobooks. However, not every area performed equally well—social and live entertainment segments experienced a decline.

Revenue and Profit Highlights
Between April and June 2025, Tencent Music reported total revenue of 8.44 billion yuan, marking a 17.9% increase from the same period in 2024. Market experts had forecasted about 7.96 billion yuan, so the company significantly outperformed expectations. This strong showing boosted investor confidence.

Tencent Music also saw a net profit increase of over 40%, which means the company earned much more even after covering its costs. Each share brought in more earnings, further strengthening faith in Tencent Music’s financial future.

What Fuelled This Growth?
1. Streaming Subscriptions
The largest reason for Tencent Music’s growth was its music streaming business. Users continued paying for access to music, podcasts, and audiobooks. This area of business grew by 26.4%, reaching 6.85 billion yuan in revenue.

Within this total, music subscriptions alone rose by 17.1%, reaching 4.38 billion yuan. More people paid for content than the previous year, showing that users are finding value in the service.

There was also a boost in how much each paying user spent. The average monthly revenue per subscriber went from 10.7 yuan to 11.7 yuan, a 9.3% increase. This shows that users weren’t just joining the service—they were spending more on premium features.

2. Long-Form Audio on the Rise
Another major trend helping Tencent Music was the growing popularity of longer audio content. Podcasts, audiobooks, and storytelling formats kept listeners engaged for longer periods. These types of content not only kept people listening but also encouraged them to pay for access. As a result, long-form audio is becoming a key part of the company’s offerings.

3. Super VIP and New Services
Tencent Music has moved beyond just music streaming. It now offers more services through its Super VIP membership. This program includes access to high-quality audio, VIP karaoke experiences, and special event invitations. The program is growing, with around 15 million subscribers as of this quarter.

The company also made money through advertising, concerts, merchandise, and artist-related items. These extra services allowed Tencent Music to attract more users and create multiple income streams beyond just streaming subscriptions.

4. Ximalaya Deal
A major business move came in June when Tencent Music announced its plan to buy Ximalaya, one of China’s largest long-form audio platforms. The deal was worth around $2.4 billion, paid in both cash and shares.

This acquisition expanded Tencent Music’s audio catalog, brought in more creative talent, and gave the company a stronger hold in the podcast and audiobook space. It’s expected to increase the number of paying users by giving them more reasons to subscribe.

What Didn’t Do Well?
Not every part of Tencent Music’s business saw growth. The social entertainment segment, which includes live karaoke, livestreaming, and interactive features, fell by 8.5%. It brought in 1.59 billion yuan, down from the previous year.

This decline may suggest that users are shifting their interest from live, interactive content to more convenient on-demand formats like music and podcasts.

Market Reaction
After these strong results were released, Tencent Music’s shares traded on U.S. stock exchanges rose by 3.3% in pre-market hours. This increase shows that investors were pleased with the company’s performance and future direction.

Why This Matters
Tencent Music’s results show the company is doing a good job of keeping up with changing user habits. People are listening more to podcasts, audio learning, and storytelling, and the company is meeting that demand. At the same time, it’s finding ways to make these users pay a little more, while also giving them more value.

However, competition in China’s music and audio space is fierce. Rival platforms like NetEase Cloud Music and Douyin (the Chinese version of TikTok) are still very popular and constantly improving.

For Tencent Music to stay ahead, it will need to keep investing in content, user experience, and creative features. The company’s Super VIP services, exclusive content deals, and recent Ximalaya acquisition show that it has a clear strategy for growth.

Looking Back: A Strong First Quarter
In the first quarter of 2025 (January–March), Tencent Music reported 7.36 billion yuan in revenue. That was 8.7% higher than the same quarter in 2024. Music subscriptions were also the main driver of that early growth.

These first-quarter results built a strong base for the second quarter’s even better performance. The company had already started improving its content and adding services for paying users, which continued to pay off in the next quarter.

What’s Next for Tencent Music?
Here are a few things we might see from Tencent Music in the near future:

1. Expansion of Long-Form Audio
With Ximalaya under its umbrella, Tencent Music will likely invest more in original podcasts, storytelling, and audiobooks. These formats are clearly popular and could help the company stand out.

2. Enhancing Super VIP
As more people subscribe to Super VIP, the company may introduce new features—possibly including artist meet-and-greets, early music releases, or AI-generated playlists.

3. Revamping Social Features
Since the social entertainment segment is dropping, Tencent Music may need to redesign its karaoke and live offerings to make them more appealing or interactive again.

4. Building Stronger Partnerships
Tencent Music might also work more with music labels, artists, and other tech platforms to offer exclusive content. Collaborating with global artists or offering unique experiences could help it draw in younger audiences.

Tencent Music had an impressive second quarter in 2025. With revenue rising nearly 18%, profits climbing over 40%, and millions of new subscribers joining, the company proved it understands what listeners want today.