Tencent Music Entertainment Group - ADR

Tencent Music Entertainment Group - ADR

TME

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Market Cap$14.17B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Tencent Music Entertainment Group - ADRTencent Music Entertainment Group - ADR112.58%12%0.40.1

Earnings Call Q3 2025

November 12, 2025 - AI Summary

Strong Financial Growth: In Q3 2025, Tencent Music Entertainment (TME) reported a 21% year-on-year increase in total revenues to RMB 8.5 billion, marking the highest revenue growth since Q1 2021. Online music revenues were up over 27% year-on-year at RMB 7 billion, driven primarily by a 70% growth in music subscription revenues to RMB 4.5 billion. Monthly ARPPU rose from RMB 10.8 to RMB 11.9 compared to the same quarter last year.
Subscription Services Momentum: The company continues to witness solid performance in its music subscription services, with steady growth in paying users and a strong SVIP membership program. This indicates sustained user interest and investment in premium offerings, although there are concerns about competitive dynamics potentially leading to market pressure for pricing and subscriber growth.
Challenges and Risks: Despite strong results, TME faces competitive pressures from other music streaming services, particularly regarding content acquisition and user engagement strategies. The competitive landscape is intensifying with other apps ramping up faster in monthly active users (MAU) and potentially high content purchase budgets.

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$16.02

Target Price by Analysts

73.8% upsideTencent Music Entertainment Group Target Price DetailsTarget Price
$15.19

Current Fair Value

64.8% upside

Undervalued by 64.8% based on the discounted cash flow analysis.

Share Statistics

Market cap$14.17 Billion
Enterprise Value$4.43 Billion
Dividend Yield$0.24 (2.58%)
Earnings per Share$7
Beta0.77
Outstanding Shares1,540,670,121

Return

Return on Equity11.53%ROE
Return on Assets8.59%
Return on Invested Capital16.07%

Valuation & Multiples

P/E Ratio10.99P/E Ratio
PEG-21.31PEG
Price to Sales0.44Price to Sales
Price to Book Ratio0.19Price to Book Ratio
Enterprise Value to Revenue0.14
Enterprise Value to EBIT0.33
Enterprise Value to Net Income0
Total Debt to Enterprise1.95
Debt to Equity0.12Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 18, 2026
EPS Estimate
$0.03
Average shareholder expectation
Revenue Estimate
$165.84 M
Average shareholder expectation

Next Earnings Call

Expected Date
August 11, 2026
EPS Estimate
$0.24
Average shareholder expectation
Revenue Estimate
$1.29 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio3.1121 257.08%
Total Calls1,022,900 75.00%
Total Puts3,183,400 43.70%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %26.32% 2.34%
Total Invested$3.75B 52.25%
Investors Holding333 29.00%

ESG Score

No data

About Tencent Music Entertainment Group

CEO: Cussion Kar Shun Pang

Relevant Senate Committees

Finance

As the primary committee for taxation and trade policy, it directly impacts corporate valuations, US-China trade relations, potential tariffs, and overall economic conditions for foreign-listed companies like TME.

Judiciary

This committee oversees antitrust laws and intellectual property, which are critical for a large online music platform like TME regarding content licensing, potential market dominance, and merger scrutiny within the tech and entertainment sectors.

Banking, Housing, and Urban Affairs

This committee regulates the entire financial system, including the SEC, which oversees TME's NYSE listing, disclosure requirements, and potential delisting concerns for foreign companies (e.g., HFCAA concerns for Chinese companies).

Select Committee on Intelligence

Members receive classified briefings on global threats, including cybersecurity and geopolitical risks involving China, which could directly impact the regulatory treatment and investor perception of Chinese tech companies like TME, potentially leading to delisting or operational restrictions.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, technology, privacy, and telecommunications. These areas are highly relevant for a global online entertainment platform, including potential data privacy regulations or US listing requirements for foreign tech companies.

Foreign Relations

This committee directly impacts U.S. foreign policy, sanctions, and trade relations, which are critical for a Chinese company like TME listed in the US, especially concerning potential delisting due to geopolitical tensions or trade restrictions.