TME 4Q25 Results: Competition to Weigh Down Subs Growth in FY26
What’s new: TME’s reported 4Q25 revs that were above consensus and our expectations. Subs rev growth could meaningfully decelerate in FY26 where monthly ARPPU could trend down partly due to competition. While non-subscription rev growth could remain resilient, the rev mix shift towards offline concerts could also weigh down on margins. We lower our PT from US$22 to US$14 on lowered outlook. Our updated PT of US$14 implies 14.4x FY26E P/E. We maintain our BUY rating.Analysts:
Jin Yoon
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