New Street Research - Tencent Music Entertainment Group Sponsored ADR Class A (TME) TME 2Q25 Results: Core Music Segment Remains Resilient

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New Street Research

Jin Yoon

TME 2Q25 Results: Core Music Segment Remains Resilient

What’s new: TME’s reported 2Q25 results that were above consensus and our expectations. OMS could remain resilient as monthly ARPPU could see further upside from stable competition and increasing contribution from SVIP members. GM could be adversely impacted in 3Q partly due to higher rev mix from lower margin offline concerts related revs. We up our PT from USD17 to USD28 on resiliency of the online music segment. Our updated PT of USD28 implies 28.5x FY26E P/E. We maintain our BUY rating.

Analysts:
Jin Yoon

13/08/2025 1 EN

Underlying

Tencent Music Entertainment Group Sponsored ADR Class A

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US88034P1093 New York Stock Exchange Cayman Islands

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Analysts

Jin Yoon

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TME 2Q25 Results: Core Music Segment Remains Resilient

Tencent Music Entertainment Group (1698 HK): 2Q25: Solid earnings beat; focusing on fan economy to foster SVIP penetration.

Greater China Daily: Wednesday, August 13, 2025

Could the Trump/Carr Gambits Against CMSCA (and DIS) Backfire?

SE 2Q25 Results: Upside in FY25 Shopee GMV

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