TME

Key takeaways

• Online music paying users rose 15.3% to 135.6 million, and monthly ARPPU increased to RMB11.0, driving music subscription revenue up 16.0% to RMB17.7 billion.
• Social entertainment revenue fell 7.3% to RMB6.2 billion as the company continued to adjust live-streaming functions and apply stricter compliance procedures, though the pace of decline slowed sharply from the 36% drop in 2024.
• Gross margin expanded to 44.2% from 42.3%, lifted by the growing share of high-margin music subscriptions and advertising, partly offset by lower-margin offline performances and merchandise.