Tencent Music Entertainment Group Class A · HKEX:1698
Tencent Music Entertainment Group Class A — Q1 2026 Earnings Presentation
14 slides from Tencent Music Entertainment Group Class A's earnings presentation, May 12, 2026
Slide 1: Tencent Music Entertainment Group Announces First Quarter 2026 Unaudited Financial Results
Tencent Music Entertainment Group Announces First Quarter 2026 Unaudited Financial Results SHENZHEN, China, May 12, 2026/PRNewswire/ — Tencent Music Entertainment Group (“TME,” or the “Company”) (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today ann
Slide 2: Non-IFRS Diluted Earnings Per ADS and Management Commentary
Non-IFRS diluted earnings per ADS was RMB1.46 (US$0.21), up from RMB1.37 in the same period of 2025. • Total cash, cash equivalents, term deposits and short-term investments as of March 31, 2026 were RMB41.00 billion (US$5.94 billion). Mr. Cussion Pang, Executive Chairman of TME, commented, “This
Slide 3: First Quarter 2026 Operational Highlights
First Quarter 2026 Operational Highlights CONTENT — To unlock long-term value, we continued to invest in premium IP to drive differentiation and engagement, while leveraging AI to enrich content creation and improve efficiency. • Strengthened our premium evergreen catalog by renewing key label partn
Slide 4: IP-VALUE
IP-VALUE — Adopted a holistic, pan-IP approach to amplify music influence, simultaneously boosting user reach, engagement, and wallet share. • Extended the IP value chain and unlocked commercial value through innovative virtual and physical offerings. A prime example is our strengthened partnership
Slide 5: Gross Margin Increased to 44.9%
Gross margin increased to 44.9% from 44.1% in the same period of 2025, primarily due to increase in revenues from membership services, along with decreased channel fee. Total operating expenses increased by 5.9% year-over-year to RMB1.21 billion (US$176 million). Operating expenses as a percentage o
Slide 6: Environmental, Social, and Governance
Environmental, Social, and Governance (“ESG”) On April 20, 2026, we released our 2025 ESG Report, detailing our progress in empowering creators, promoting digital inclusion, and driving sustainability across our value chain. These initiatives have strengthened our ecosystem’s resilience, leading to
Slide 7: Adjusted EBITDA and Non-IFRS Net Profit
Adjusted EBITDA for the period represents net profit for the period excluding income tax expense, finance cost, share of profit/loss of associates and joint ventures, other gains/losses, interest income, depreciation of property, plant and equipment and right-of-use assets, amortization of intangibl
Slide 8: Consolidated Income Statements
TENCENT MUSIC ENTERTAINMENT GROUP CONSOLIDATED INCOME STATEMENTS Three Months Ended March 31 2025 2026 RMB RMB US$ Unaudited Unaudited Unaudited (in millions, except per share data) Revenues Music related services* 5,804 6,514 944 Social entertainment services and others 1,552 1,381 200 7,356 7,895
Slide 9: Earnings Per Share and ADS
Three Months Ended March 31 2025 2026 RMB RMB US$ Unaudited Unaudited Unaudited (in millions, except per share data) Attributable to: Equity holders of the Company 4,291 2,091 303 Non-controlling interests 97 46 7 Earnings per share for Class A and Class B ordinary shares Basic 1.40 0.68 0.10 Dilute
Slide 10: Unaudited Non-IFRS Financial Measures
TENCENT MUSIC ENTERTAINMENT GROUP UNAUDITED NON-IFRS FINANCIAL MEASURES Three Months Ended March 31 2025 2026 RMB RMB US$ Unaudited Unaudited Unaudited (in millions, except per share data) Profit for the period 4,388 2,137 310 Adjustments: Income tax expense 446 457 66 Finance cost 25 46 7 Share of
Slide 11: Earnings Per Share and ADS
Three Months Ended March 31 2025 2026 RMB RMB US$ Unaudited Unaudited Unaudited (in millions, except per share data) Attributable to: Equity holders of the Company 2,124 2,273 330 Non-controlling interests 102 60 9 Earnings per share for Class A and Class B ordinary shares Basic 0.70 0.74 0.11 Dilut
Slide 12: Consolidated Balance Sheets
TENCENT MUSIC ENTERTAINMENT GROUP CONSOLIDATED BALANCE SHEETS As at December 31, 2025 As at March 31, 2026 RMB RMB US$ Audited Unaudited Unaudited (in millions) ASSETS Non-current assets Property, plant and equipment 1,201 1,301 189 Land use rights 2,290 2,272 329 Right-of-use assets 287 272 39 Inta
Slide 13: Equity and Liabilities
As at December 31, 2025 As at March 31, 2026 RMB RMB US$ Audited Unaudited Unaudited (in millions) EQUITY Equity attributable to equity holders of the Company Share capital 2 2 0 Additional paid-in capital 29,919 30,020 4,352 Shares held for share award schemes (801) (821) (119) Treasury shares (664
Slide 14: Condensed Consolidated Statements of Cash Flows
TENCENT MUSIC ENTERTAINMENT GROUP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31 2025 2026 RMB RMB US$ Unaudited Unaudited Unaudited (in millions) Net cash provided by operating activities 2,519 2,332 338 Net cash (used in)/provided by investing activities (3,221) 6,650
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