Goldman Sachs: Tencent Music-SW (01698.HK) Q2 performance strong, surpassing expectations with accelerated growth in non-subscription music revenue.

date
14/08/2025
According to the financial news app, Zhidao Finance, Goldman Sachs released a research report stating that Tencent Music-SW (01698, TME.US) announced its performance for the second quarter of 2025, with revenue reaching 4.4 billion RMB, a year-on-year increase of 18%, exceeding the market consensus expectation by 6% and also higher than Alpha consensus expectation by 8%. This is mainly due to better-than-expected revenue from online music services (up 26% year-on-year, 7% higher than GSe/consensus expectations) and a decline in social entertainment business (down 9% year-on-year). Non-GAAP operating profit exceeded expectations, reaching 2.8 billion RMB (up 34% year-on-year), with an operating profit margin (OPM) of 33.5%, higher than expected, thanks to a gross profit margin (GPM) that basically met expectations (44.4%) and well-controlled operating expenses (OPEX). Adjusted net profit also exceeded expectations, reaching 2.6 billion RMB (up 37% year-on-year, 17% higher than GSe, and 14% higher than Alpha consensus expectations).