NTES Cloud Music (09899) announced its interim performance, achieving revenue of approximately 3.959 billion yuan, a year-on-year increase of 3.4%.

NTES Cloud Music (09899) announced its mid-year results for 2026, with revenue of approximately 3.959 billion yuan, a year-on-year increase of 3.4%; gross profit of approximately 1.474 billion yuan, a year-on-year increase of 5.9%; and net profit of approximately 809 million yuan, with adjusted net profit of approximately 860 million yuan. Among these, revenue from online music services increased by 3.4% to 3.067 billion yuan, primarily due to an increase in membership subscription revenue from 2.47 billion yuan to approximately 2.6 billion yuan during the same period. The company continues to focus on its core music business and aims to enhance user experience by enriching its content matrix, optimizing product functionality, and improving personalized experiences. Revenue from social entertainment services and other sources rose by 3.7% to 891 million yuan. The company continues to strengthen its music-centered community ecosystem, driving user engagement on the platform by enhancing user experience and reinforcing brand awareness in the first half of 2026, leading to growth in daily active users. The DAU/MAU ratio remains above 30%, showing an upward trend both year-on-year and quarter-on-quarter. The daily average listening time of mobile users has steadily increased, along with a significant rise in the consumption and interaction rates of community content. Notably, as the platform's membership scale continuously expands, the retention and renewal rates have improved steadily year-on-year and quarter-on-quarter, reflecting users' increasing loyalty and engagement with the platform. The company is committed to attracting young music enthusiasts. The unique musical content and experiences, trendsetting aesthetic tone, and distinctive emotional engagement continually drive word-of-mouth promotion. The company is also expanding into more devices and scenarios, including collaborations with NTES Games to reach and attract a younger audience through more channels. In the first half of 2026, the company's membership subscription revenue maintained robust growth thanks to the expansion of membership scale, although it was partially offset by the dilution of monthly ARPPU (average revenue per paying user) caused by changes in membership structure. The company has further improved its membership benefits system, which focuses on content, functionality, decorative rights, and services related to musicians. In addition to providing high-quality content, the company also creates more distinctive emotional experiences and innovative interactive features for users. These upgrade measures not only enhance users' willingness to pay for quality experiences but also boost membership retention rates.