Tencent Music Reports $1 Billion in Q1 Revenue as Profit Surges 201%

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Tencent Music Entertainment Group, China’s leading digital audio platform, reported strong first-quarter results for 2025, with total revenue rising 8.7% year-over-year to $1.01 billion. Growth was driven by gains in music subscriptions and advertising, and significantly boosted by a windfall related to its stake in Universal Music Group.

Net profit attributable to equity holders soared 201.8% to $591 million, with total net profit reaching $605 million. Non-IFRS net profit attributable to equity holders rose 24.6% to $293 million.

Revenue from music subscriptions reached $581 million, up 16.6% year-over-year, as paying users grew to 122.9 million and monthly average revenue per paying user (ARPPU) rose to $1.57. Overall revenue from online music services totaled $800 million, a 15.9% increase, driven by subscriptions, ad sales, merchandise, and concerts.

Revenue from social entertainment services and other segments fell 11.9% to $214 million, largely due to regulatory compliance changes and adjustments in live-streaming functionality.

TME renewed its multi-year licensing deal with Sony Music Entertainment and expanded premium offerings like Dolby Atmos and 360 Reality Audio for SVIP members. Partnerships also deepened with Emperor Entertainment Group, Rock Records, Dream Music Group, and South Korea’s Starship Entertainment and YG Entertainment. The company also collaborated with Japan’s top animation, comics and games content producers to diversify its international catalog.

Original content saw strong traction, with Zhou Shen’s “To Time,” co-produced with CCTV News, and the theme song “One Thought to Eternity” for the game “CrossFire” topping local music charts. The platform ramped up artist merchandise, including an exclusive head-start presale of Teens in Times’ “Beyond Utopia,” which topped its 2025 physical album chart. Custom product lines for Silence Wang and K-pop icon G-Dragon delivered strong sales.

Offline events also proved successful. TME’s “Music For Passion” festival in Chengdu drew tens of thousands and featured artists such as JC-T, Roy Wang, Silence Wang, and Legend of Phoenix. The company also hosted exhibitions for Aespa and Babymonster, offering collectibles and interactive content.

Premium audio remains a major draw, with roughly 50% of SVIP members engaging with enhanced formats. Kugou Music debuted an industry-first Viper sound effect for external speakers.

SVIP perks such as early concert access, meet-and-greets, and exclusive merchandise have increased user retention. Long-form audio, especially “The Grave Robbers’ Chronicles” drama co-produced with author Nanpai Sanshu, quickly surpassed 10 million streams.

A major profit driver in Q1 was a one-time gain of $327 million from Tencent Music’s receipt of a 2% equity interest in Universal Music Group through a distribution-in-kind from an associate. This holding was reclassified as a financial asset, triggering a gain on the deemed disposal of the original associate investment.

Total operating profit jumped 146.9% to $666 million. Gross margin rose to 44.1%, up from 40.9% in Q1 2024, fueled by the growing share of subscriptions and advertising revenues, as well as a decrease in revenue-sharing costs from lower social entertainment activity.

Operating expenses held steady at $158 million, while income tax expenses totaled $61 million. Tencent Music ended the quarter with $5.19 billion in cash, equivalents, term deposits, and short-term investments.

The company repurchased 5.9 million shares for $64.5 million at an average price of $10.80 per share during the quarter.

In April, Tencent Music paid out a dividend of $0.18 per share (or $275 million total), following a March 17 board declaration.

“Our strong first-quarter performance, marked by robust revenue growth and solid profitability, underscores the successful execution of our high-quality growth strategy,” said Cussion Pang, executive chair of TME.

CEO Ross Liang attributed the company’s continued success to its “continued investment in compelling content and innovative, differentiated products delivered across diverse formats.”

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Kendrick Lamar fans go wild during Grand National performance in Argentina

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Kendrick Lamar continues to be one of the most talked-about figures in hip-hop, often sparking intense debate among fans and critics alike. Still, for those attending his “Grand National” tour, the experience has been nothing short of unforgettable. The rapper performed in Argentina last night (Saturday, October 4) at the Estadio Monumental, and clips shared by NFR Podcast and Complex Music on Instagram captured a packed crowd having the time of their lives.

That said, Kendrick’s South American “Grand National” run hasn’t been completely smooth. This has nothing to do with the online chatter about ticket sales, pricing rumors, or claims from critics and Drake supporters, all of which remain unverified. The real issue stems from the canceled concert in Bogotá, Colombia, which left disappointed fans waiting for hours. While the exact reason hasn’t been fully confirmed, local reports suggest that the cancellation was due to structural problems at the Vive Claro Stadium, security complications on the day of the show, and intervention from city officials to ensure safety. Still, the footage from his Argentina performance shows that despite setbacks, fans were treated to a truly electric night.

Kendrick Lamar Grammys

Elsewhere, Kendrick Lamar is already looking ahead to 2026, having officially submitted his work for Grammy consideration. The Recording Academy is expected to announce nominations in early November, and fans are eager to see which of his entries will make the final cut. Among his submissions are the GNX album for Album of the Year, “luther” featuring SZA for Record and Song of the Year, and several collaborations from 2025 vying for Best Rap Song and Best Rap Performance. If he takes home four awards this cycle, and Jay-Z doesn’t win any, Kendrick will become the most decorated hip-hop artist in Grammy history.

Meanwhile, some of Kendrick’s earlier projects are still reaching new milestones. His collaboration with Travis Scott, “goosebumps,” has officially become the highest-certified hip-hop track of all time. With achievements like these continuing to stack up, it’s easy to see why fans and critics hold K.Dot to such high expectations when it comes to touring, chart success, and influence. He has one more stop left in Chile before taking his show to Australia later this year.

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