Tencent Music Entertainment Group - ADR
TME - Insider Information
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+ FollowMarket Cap$14.6B
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Earnings Call Q4 2025
March 17, 2026 - AI Summary
Strong 2025 results; momentum in online music + advertising
- Q4 2025: Total revenues +15% YoY to RMB 8.6bn.
- Music subscription: +13% YoY to RMB 4.6bn.
- Non-subscription music services: +41% YoY to RMB 2.5bn.
- Gross margin: 44.7% in Q4 (+1.1pp YoY), supported by subscription + ad growth and a lower revenue-sharing ratio in social entertainment.
- Full-year 2025: Total revenues RMB 32.9bn (+16% YoY); online music services RMB 26.7bn (+23% YoY).
- Music subscription full-year: RMB 17.7bn (+16% YoY); social entertainment +7% YoY.
- Profit: Q4 net profit +10% YoY to RMB 2.3bn; non-IFRS net profit +8% YoY to RMB 2.6bn. Full-year non-IFRS net profit RMB 9.9bn (+22% YoY).
Business strategy: dual engine (content + platform) with more emphasis on monetization, not just subscribers
- Leadership emphasized differentiated all-in-one music platform and a growing content flywheel (classic catalog, self-produced content, and OST/coproduction capabilities).
- 2025–2026 change in disclosures (surprising/important): They will discontinue quarterly disclosure of certain operating metrics and instead report annually total paying users by year-end—signaling a shift toward profit/revenue KPI focus over “subscriber metrics” cadence.
- SVIP scale milestone: Over 20 million SVIP users (ended 2025 above 20m); ARPPU slightly up; new AD-supported subscription plan gaining initial traction (used to broaden addressable user class).
Non-subscription growth levered via live events, merchandise, and artist IP
- Management highlighted expansion of off-line experiences and artist/merch monetization (live concerts + collectible merchandise) as a key driver for non-subscription revenue growth.
- Examples cited:
- G-Dragon World Tour: 20 concerts across 8 cities, 260k+ fans, with Taipei Dome shows drawing 75k+.
- Physical/collectible formats: KIT album with Ed Sheeran (hybrid physical-digital), and expanded collectible merchandise for other artists.
- CFO noted this continued investment may cause gross margin volatility due to revenue mix changes as offline/merch scales.
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$14.52
53.3% upside
Current Fair Value
53.3% upsideUndervalued by 53.3% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $14.60 Billion |
|---|---|
| Enterprise Value | $7.78 Billion |
| Annual dividend | $0.24 |
| Dividend yield | 2.84% |
| Earnings per Share | $7 |
| Beta | 0.75 |
| Outstanding Shares | 1,540,670,121 |
Return
| Return on Equity | 10.99% |
|---|---|
| Return on Assets | 7.36% |
| Return on Invested Capital | 13.78% |
Valuation & Multiples
| P/E Ratio | 9.81 |
|---|---|
| PEG | 381.02 |
| Price to Sales | 0.45 |
| Price to Book Ratio | 0.18 |
| Enterprise Value to Revenue | 0.24 |
| Enterprise Value to EBIT | 0.6 |
| Enterprise Value to Net Income | 0 |
| Total Debt to Enterprise | 2.17 |
| Debt to Equity | 0.22 |
Revenue Sources
No data
Last Earnings Call
Report Date
August 11, 2026
EPS Estimate
$0.24
Consensus analyst estimateRevenue Estimate
$1.30 B
Consensus analyst estimateNext Earnings Call
Expected Date
November 11, 2026
EPS Estimate
$0.22
Consensus analyst estimateRevenue Estimate
$1.36 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.00, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.0000▼ 269.21% |
|---|---|
| Total Calls | -▼ 100.00% |
| Total Puts | -▼ 100.00% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 1.74%▼ 26.38% |
|---|---|
| Total Invested | $214.51M▼ 94.08% |
| Investors Holding | 76▼ 256.00% |
About Tencent Music Entertainment Group
5,690 employees
CEO: Cussion Kar Shun Pang
Tencent Music Entertainment Group (TME) is a prominent digital music and entertainment provider within the People's Republic of China, delivering a comprehensive suite of services including music streaming, online karaoke, and interactiv...