Tencent Music Entertainment Group - ADR

Strong Q1 Performance: Tencent Music Entertainment Group (TME) reported a robust revenue of RMB 7.4 billion for Q1 2025, reflecting a 9% year-over-year growth. Notably, online music revenues rose 16% year-over-year to RMB 5.8 billion, driven by a 17% increase in music subscription revenues to RMB 4.2 billion. This highlights TME's successful strategy of enhancing user engagement and expanding subscription offerings.

SVIP Membership Growth: The SVIP membership program continues to be a cornerstone for TME, contributing to strong growth in both the paying user base and average revenue per user (ARPPU), which rose to RMB 11.4 from RMB 10.6 in Q1 2024. TME's focus on high-quality content and exclusive perks is expected to drive further increases in SVIP adoption and user retention.

Advertising Revenue Momentum: Advertising revenues showed a solid year-over-year growth, fueled by the success of the ad-supported model and innovative ad formats. TME plans to continue investing in advertising initiatives, indicating a growing contribution to overall revenue and signaling a healthy outlook for this segment in 2025.