TME-SW (01698) gained nearly 3% in trading, up 2.37% at HK$33.72 with a turnover of HK$24.37 million as of press time. On the news front, on August 11, Tencent Music released its unaudited financial results for the second quarter ended June 30, 2026. For the quarter, Tencent Music posted solid growth across the board. Data shows that total revenue rose 5.8% year-on-year to 8.93 billion yuan, while adjusted net profit increased 5.3% year-on-year to 2.78 billion yuan. Notably, music-related services revenue grew diversely, climbing 11% year-on-year to 7.61 billion yuan. Within this, music-related membership service revenue reached 4.79 billion yuan, up 8.1% year-on-year, while marketing and consumer service revenue stood at 2.81 billion yuan, up 16.2% year-on-year.
Analysts at CSC Financial believe that Tencent Music achieved steady earnings growth in the second quarter. The subscription business performed steadily, the consolidation of Ximalaya contributed incremental revenue, and IP-related businesses delivered standout results. Offline concerts and artist merchandise recorded double-digit growth, and the synergies among artist incubation, performance IPs, and fan economy continued to strengthen. The consolidation of Ximalaya marks the company's completion of its transformation from a music platform to a comprehensive "music + audio" service platform. The company is using the integration of SVIP benefits as a starting point to deepen content synergies with Yuewen Group and Tencent Video, while its long-form audio business focuses on three key directions: classic children's stories, Yuewen's online literature IPs, and Tencent Video's S-level series.
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