Tencent Music (01698) reported an adjusted net profit of 2.78 billion yuan for Q2 2026, as the music and audio ecosystem expands and creates diverse growth opportunities.

On August 11, 2026, Tencent Music Entertainment Group (hereinafter referred to as "Tencent Music", 01698) released its unaudited financial performance report for the second quarter ended June 30, 2026. In the second quarter, Tencent Music achieved steady growth in overall performance. Data shows that total revenue for the quarter grew by 5.8% year-over-year to 8.93 billion yuan, and adjusted net profit grew by 5.3% year-over-year to 2.78 billion yuan. Among these, revenue from music-related services achieved diversified growth, increasing by 11% year-over-year to 7.61 billion yuan; revenue from music-related membership services was 4.79 billion yuan, an 8.1% year-over-year increase, while revenue from marketing and consumer services reached 2.81 billion yuan, up 16.2% year-over-year. Additionally, the financial report revealed that Tencent Music intensified its share buyback efforts in the second quarter, completing a cash buyback of approximately 400 million U.S. dollars in a single quarter, and will actively promote a new round of buyback plans, reflecting its confidence in sustainable growth and long-term development. In this quarter, Tencent Music deepened its "one body with two wings" strategy for content and platform, leveraging advanced technologies such as AI to upgrade its platform products and services, further deepening ecological integration, optimizing the music experience from discovery to listening, and attracting a broader user base to participate actively. At the same time, it continued to build a diverse content ecosystem centered around IP, creating a variety of popular original productions, supporting the growth and development of more collaborating artists while accelerating the expansion of its digital audio layout through the integration with Himalaya, continuously amplifying the vitality and influence of quality IP, and fully extending IP value by expanding diverse scenarios such as offline performances and merchandise to enrich the music entertainment experience, meeting deeper user needs and preferences, driving steady growth in overall performance, and continuously creating long-term value for the industry. With the music industry entering a stage of value cultivation, the expansion of user scale and the service of deepening needs are becoming important propositions for industry growth. In this quarter, Tencent Music continued to innovate its product recommendation features, deepening collaborative integration with the Tencent ecosystem, utilizing AI assistants to enhance the accuracy and convenience of music discovery, bringing users a more natural music access and personalized listening experience, and attracting a broader user base for conversion and retention, thereby improving their engagement and satisfaction. In the second quarter, Tencent Music continuously innovated its product features and platform services, creating a smoother path from music discovery to playback. On one hand, Tencent Music launched features like vertical swiping for songs and video recommendations, expanding diverse pathways to help users accurately discover quality music content; on the other hand, Tencent Music increased the entrance for free mode in core applications, effectively attracting more casual users to participate actively, thereby increasing the average daily listening time per user. While optimizing services within the platform, Tencent Music also deepened its integration with the Tencent ecosystem, breaking through the traditional boundaries of music apps, and allowing music to permeate users' lives across all scenarios. In this quarter, Tencent Music further strengthened its cooperation with video accounts, inviting more popular music labels, artists, and music variety shows to join, continuously expanding the promotional channels for quality music content; it also collaborated with WeChat Pay, using daily payment scenarios to guide users to lightweight applications such as BoDian Music and KUGOU Concept Version, precisely catering to the listening preferences of casual users with free modes and simplified experiences, further expanding user coverage. Leveraging the ecological advantages of a multi-product matrix, Tencent Music uses AI capabilities as a bridge connecting music and users, allowing the music experience to naturally integrate into users' daily lives. Tencent Music actively employs AI assistants, integrating WeChat Mini Programs to create convenient functions across various scenarios, enabling users to discover songs, generate playlists, and play music through simple commands, as well as share their favorite music in real time with friends; at the same time, in QQ Music and KUGOU Music, the upgraded AI assistant can transform into a user-specific DJ, generating personalized playlists that match users' moods using natural language and real-time scenarios, making music discovery more natural and enjoyable. Expanding the music + audio content ecosystem, diverse quality IP meets differentiated auditory needs Faced with increasingly segmented and deepening user demands, Tencent Music continued to enhance its diversified content ecosystem centered around IP this quarter, extending the traditional boundaries of strategic cooperation, creating high-quality original works to consolidate content advantages, and deeply cultivating artist incubation and development work to support artists in stepping onto broader stages, continuously amplifying the long-term value and influence of IP; at the same time, the integration with Himalaya has brought a richer array of quality audio works, covering a wider range of listening scenarios, further expanding and improving the content ecosystem, and meeting users' differentiated content needs. Tencent Music continues to strengthen the supply of quality music content and deepen strategic collaboration, extending from traditional music copyright cooperation to broader areas. In this quarter, Tencent Music intensified cooperation with Dream Music, not only securing the new album launch rights for its top artists but also further expanding depth in content co-creation, physical products, and offline experiential cooperation; it also reached a deep strategic cooperation with Zhejiang Huace Film & TV, Ruyi Film Entertainment, and Zhejiang Satellite TV, bringing popular music variety programs and film soundtracks to the platform, enhancing the immersive experience of the fusion of music and visuals. Building on its multi-genre content advantages, Tencent Music also continually enhances its capabilities in content creation and artist development, injecting growth momentum into quality IP. This quarter, Tencent Music produced popular works for leading artists and significant IPs, such as Zhou Shen's "" (Blazing Bloom), Liu Yuning's "" (Ordinary Days with a Touch of Light), and the theme song and interludes for the movie "!" (Eight Immortals!), which have been well received by users, continuously enhancing the impact of its original music library. At the same time, Tencent Music actively supports the growth of artists' careers; after the successful conclusion of GAI Zhou Yan's "Evolution" Asia Tour, Tencent Music helped upgrade his latest tour "REAL G" to a stadium scale, while also launching an overseas tour for Yuan Yahui (TIA RAY), and facilitating actor-singer Zhang Xincheng's first stadium-level tour " New Journey", allowing more music fans to experience the charm of live music up close. Additionally, Tencent Music made a strategic investment in the international music label THE BLACK LABEL, further deepening the connection between overseas artists and Chinese audiences. As an important milestone in the expansion of the content ecosystem this quarter, the inclusion of Himalaya further solidified Tencent Music's leading position in the music and audio fields. Himalaya's vast audio content library not only greatly expands the platform's content coverage but also enriches the benefits of super members, continuously upgrading the listening experience. Meanwhile, the integration of the backend systems of both parties has begun, laying the foundation for the continuous improvement of operational efficiency and long-term development in the future. Comprehensively releasing IP value, deep emotional connections continue to stimulate consumer vitality On the foundation of a continually enriching content ecosystem, Tencent Music further extends the value of quality IP from online to offline, enriching SVIP benefits while expanding diverse scenarios and forms such as offline performances and physical merchandise, enhancing interaction and emotional connection between artists and fans, continuously stimulating users' participation and willingness to consume, extending the IP value chain comprehensively and promoting steady growth in marketing and consumer service revenues, creating new spaces for experience-driven consumption growth. In the second quarter, Tencent Music developed richer super member benefits and services centered on quality IP, launching digital albums and customized packages for artists and groups such as Huang Renjun, Zhang Yixing, aespa, and RIIZE. Through a combination of exclusive content and limited-edition physical collectibles, fans were able to not only enjoy the music but also experience a stronger sense of exclusivity and identity, effectively enhancing user activity and willingness to consume. In addition to the rich online benefits, the value of music IP is also extending into more immersive offline experience scenarios, driving strong growth in Tencent Music's revenues related to offline performances. This quarter, Tencent Music hosted three fan meet-and-greets for the SM Entertainment trainee group SMTR25 in Macau, attracting tens of thousands of spectators, with surrounding merchandise also selling well, vividly showcasing the powerful appeal of IP in offline scenarios; simultaneously, building on last year's success, Tencent Music further expanded the scale of its international concert IP TMElive International Music Awards (TIMA), utilizing larger venues to welcome more enthusiastic music fans, continuously amplifying its brand influence. Meanwhile, Tencent Music has connected the full chain of IP peripheral products from design and development to production and sales. This quarter, physical peripheral products launched for artists like Cai Xukun, Chen Chusheng, Pu Yixing, and Zhou Shen were well-received by fans, accurately meeting users' deep demand and enthusiasm for high-quality music collectibles, thus further extending and releasing the diverse value of music IP. Guided by the "one body with two wings" strategy for content and platform, Tencent Music continues to promote technological innovation and ecological integration, upgrading the full-scenario platform service experience, reinforcing the advantages of music and audio content ecosystems around quality IP, and fully releasing IP value through full-chain operations, bringing users more comprehensive, high-quality services and newer, more interesting audio entertainment experiences, injecting diverse growth momentum into music consumption. Looking ahead, Tencent Music will continue toIP