TME-SW (01698) reported a net profit attributable to equity holders under non-International Financial Reporting Standards for the second quarter of 2.69 billion yuan, an increase of 4.4% year-on-year.

TME-SW (01698) announced its second quarter results for 2026, reporting total revenue of RMB 8.93 billion (USD 1.32 billion), an increase of 5.8% year-on-year. The net profit attributable to shareholders of the company was RMB 2.47 billion, up 2.57% from the previous year. The diluted earnings per American depositary share were RMB 1.57. The non-IFRS net profit attributable to shareholders was RMB 2.69 billion, a year-on-year increase of 4.4%. Among them, revenue from music-related services grew 11.0% year-on-year to RMB 7.61 billion (USD 1.12 billion), driven by robust growth in revenue from marketing and consumer services (such as offline performance-related services) and music-related membership services. Revenue from music-related membership services rose 8.1% to RMB 4.79 billion (USD 0.706 billion) year-on-year. The integration of Himalaya contributed to the growth of revenue from music-related membership services. Furthermore, the ongoing expansion of super members also boosted revenue from music-related membership services. Benefiting from the successful hosting of multiple concerts for strategic cooperation artists, revenue from offline performance-related services achieved strong year-on-year growth. In the first half of 2026, total revenue reached RMB 16.828 billion, representing a year-on-year increase of 6.52%; the net profit attributable to shareholders was RMB 4.562 billion. Penny Cheng, Executive Chairman of Tencent Music Entertainment Group, stated: "The performance in the second quarter confirms that our content and platform 'two wings' strategy is continuously yielding results. Concerts, merchandise, and other IP-derived experiences have driven a robust growth in revenue from marketing and consumer services, fully demonstrating our ability to continuously unlock the value of quality music IP. By integrating Himalaya, we have further expanded the landscape of our digital audio business, increased user reach, and enriched our ecological layout. In the face of the ongoing evolution of the industry, we will continue to uphold copyright protection, create a healthy industry ecosystem, and promote the long-term realization of creative value." Liang Zhu, CEO of Tencent Music Entertainment Group, said: "In the face of a rapidly changing market environment, we remain committed to building a comprehensive ecosystem centered around music and audio experiences, allowing users to discover content, connect with each other, and gain inspiration. Differentiated content and a vibrant community ecosystem continue to enhance the activity of core users, also driving steady growth in the super member business. The addition of Himalaya is an exciting milestone that enables us to provide users with richer audio experiences and better services. In the future, we will lead the development direction of music and audio entertainment, unlocking long-term growth potential."