Tencent Music (01698) 2026Q2 adjusted net profit reached 2.78 billion yuan, expanding the music+audio ecosystem to expand diversified growth space

The Zhitong Finance App learned that on August 11, 2026, Tencent Music Entertainment Group (hereinafter referred to as “Tencent Music”, 01698) released an unaudited financial results report for the second quarter ended June 30, 2026. In the second quarter, Tencent Music's overall performance achieved steady growth. According to the data, Tencent Music's total revenue for the quarter increased 5.8% year on year to 8.93 billion yuan, and adjusted net profit increased 5.3% year on year to 2.78 billion yuan. Among them, revenue from music-related services achieved diversified growth, up 11% year on year to 7.61 billion yuan; revenue from music-related membership services was 4.79 billion yuan, up 8.1% year on year, and revenue from marketing and consumer services was 2.81 billion yuan, up 16.2% year on year. Furthermore, financial reports revealed that Tencent Music stepped up its repurchase efforts in the second quarter, completed about US$400 million in cash repurchases in a single quarter, and will actively promote a new round of repurchase plans, reflecting its confidence in its steady growth and long-term development.

This quarter, Tencent Music deepened the “two wings in one” strategy for content and platforms, relied on advanced technology such as AI to further deepen ecological integration, optimize the music experience from discovery to listening, and attract active participation from a wider range of user groups; at the same time, it continued to build a diverse content ecosystem with IP as the core, not only creating popular homemade products in multiple categories to help the career development and growth of more cooperative artists, but also accelerate the expansion of digital audio layout through Himalaya integration, continuously amplifying the vitality and influence of high-quality IP, and on this basis, extend the value and influence of high-quality IP in all aspects Various scenes such as offline performances and surrounding areas enrich the music and entertainment experience, meet users' deep needs and preferences, drive steady growth in overall performance, and continue to create long-term value for the industry.

Ecological linkage and platform service upgrade, high-quality experience attracts a wider range of users to participate deeply

As the music industry enters a stage of deep-seated value cultivation, user scale expansion and in-depth demand services are jointly constituting important propositions for industry growth. This quarter, Tencent Music continued to innovate product recommendation functions, deepen collaboration with the Tencent ecosystem, use AI assistants to improve the accuracy and convenience of music discovery, bring users a more natural music reach and personalized listening experience, attract the conversion and retention of a wider range of users, and enhance their participation and satisfaction.

In the second quarter, Tencent Music continued to innovate product features and platform services, creating a smoother path from music discovery to playback and listening, and continuously optimizing the user experience. On the one hand, Tencent Music launched a slide-down song browsing and video recommendation function to expand multiple channels to help users accurately discover high-quality music content; on the other hand, Tencent Music added a free mode portal to the core application, effectively attracting more active participation from casual users, driving an increase in the amount of time per person listening to songs every day.

While optimizing services within the platform, Tencent Music also continues to deepen its integration with the Tencent ecosystem, breaking through the boundaries of traditional music apps, and allowing music to penetrate all aspects of users' lives. This quarter, Tencent Music further strengthened collaboration with video accounts, invited more popular music brands, artists, and music variety shows to continue to expand promotion channels for high-quality music content; it also cooperated with WeChat Pay to guide users to lightweight apps such as Polka Dot Music and Kugou Concept Edition using everyday payment scenarios to accurately meet the listening preferences of light users with a free model and simple experience, and further expand user coverage.

Relying on the ecological advantages of linking multiple product matrices, Tencent Music uses AI capabilities as a bridge between music and users, so that the music experience is naturally integrated into users' daily lives. Tencent Music actively uses AI assistants to create convenient functions in multiple scenes by connecting to WeChat Xiaowei. Users can discover songs, generate playlists, and play music through simple instructions, and can also share favorite music with friends in real time; at the same time, in QQ Music and Kugou Music, the upgraded AI assistant can be used as a user's exclusive DJ, combining natural language and scenes to generate personalized song lists that suit the user's mood in real time, making the music discovery experience more natural and fun.

Expansion of the music+audio content ecosystem, multiple high-quality IPs to meet differentiated hearing needs

Facing the increasing segmentation and deepening of user needs, this quarter, Tencent Music continues to strengthen the multi-content ecosystem with IP as the core, expand the traditional boundaries of strategic cooperation, create high-quality homemade works to consolidate content advantages, and further cultivate artist incubation and training to help artists reach a wider stage and continuously amplify the long-term value and influence of IP; at the same time, the integration of the Himalayas has brought richer high-quality audio works, covering a wider range of listening scenarios, further expanding and improving the content ecosystem to meet the differentiated content needs of users.

Tencent Music continues to strengthen the supply of high-quality music content and deepen strategic cooperation, extending from traditional music copyright cooperation to a wider range of fields. This quarter, Tencent Music and Dream Music deepened cooperation, not only securing the right to launch new albums by its leading artists, but also further expanding in-depth cooperation in the fields of content co-creation, physical products and offline experiences; reaching deep strategic cooperation with Huace Film and Television, Ruyi Film, and Zhejiang TV to introduce popular music variety shows and film and television acoustic music into the platform to enhance the immersive experience of music and visual integration.

On the basis of consolidating the advantages of multiple categories of content, Tencent Music also continues to improve content customization and artist training capabilities, injecting growth momentum into high-quality IPs. This season, Tencent Music created popular works for leading artists and blockbuster IPs, “Warmly Blooming” by Zhou Shen, “Ordinary Days Borrow a Little Light”, and the movie “Eight Immortals!” The theme song and interlude are all loved by users, and the influence of the homemade song library continues to increase. At the same time, Tencent Music actively accompanied the artist's career growth. Following the successful conclusion of GAI Zhou Yan's “Theory of Evolution” Asian tour, it helped upgrade their latest “REAL G” tour to a stadium scale, and launched an overseas tour for Yuan Yawei's TIA RAY. The first stadium-level tour “New Journey New Journey” by famous actor and singer Zhang Xincheng also successfully landed, allowing more fans to experience the charm of live music up close. Furthermore, Tencent Music made a strategic investment in the international music label THE BLACK LABEL, further deepening the connection between overseas artists and Chinese listeners.

As an important milestone in the expansion of the content ecosystem this quarter, the addition of Himalaya has further strengthened Tencent Music's leading position in the field of music and audio. The Himalayas's huge audio content library has not only greatly expanded the platform's content coverage, but also further enriched the benefits of super members and continuously upgraded the listening experience. At the same time, back-office system integration between the two sides has begun, laying the foundation for the continuous improvement of future operational efficiency and long-term development.

The value of IP is unleashed in all aspects, and deep emotional connections continue to stimulate consumer vitality

On the basis of a continuously rich content ecosystem, Tencent Music further extends the value of high-quality IP from online to offline, and while enriching SVIP benefits, it expands diverse scenes and forms such as offline performances and physical surroundings, strengthens the interaction and emotional connection between artists and fans, continuously stimulates users' participation and desire to spend, extends the IP value chain in all aspects, promotes steady growth in marketing and consumer service revenue, and opens up new space for experiential consumption growth.

In the second quarter, Tencent Music built richer super membership benefits and services around high-quality IP, and launched digital albums and customized gift packages for artists and groups such as Huang Renjun, Zhang Yixing, aespa, and RIIZE. Through a combination of exclusive content and limited physical collections, fans can enjoy music while also getting a more exclusive and identifiable experience, effectively increasing users' activity and spending intentions.

In addition to rich online benefits, the value of music IP is also extending to more immersive offline experience scenarios, driving strong growth in revenue related to Tencent Music's offline performances. This quarter, Tencent Music hosted three fan meetings for SM Entertainment's trainee group SMTR25 in Macau, China, which attracted tens of thousands of viewers, and the surrounding products were also popular at the same time, fully demonstrating the strong appeal of the IP offline scene. At the same time, based on last year's successful performance, Tencent Music further expanded the scale of its own international performance IP TMElive International Music Awards (TIMA), and used larger venues to welcome more passionate fans, and the brand's influence continued to grow.

At the same time, Tencent Music has opened up a full link from design and development to production and sales of IP peripheral products. This quarter, Tencent Music's physical peripheral products for artists such as Cai Xukun, Chen Chusheng, Pu Yixing, and Zhou Shen were well received by fans, accurately meeting users' deep demand and consumer enthusiasm for high-quality music collections, and further extending and unleashing the diverse value of music IP.

Guided by the “two wings in one” strategy of content and platforms, Tencent Music continues to promote technological innovation and ecological linkage, upgrade the full-scene platform service experience, strengthen the ecological advantages of music and audio content around high-quality IP, and release IP value in all aspects through full-link operation, bringing users more comprehensive, high-quality services and novel and fun audio and entertainment experiences, and injecting multiple growth impetus into music consumption. Looking forward to the future, Tencent Music will continue to invest in high-quality IP, work with industry partners to explore innovative paths in music services, and continue to create long-term value for the music and audio entertainment industry.