Key Points
The China-based company released its second-quarter earnings to a grateful market.
It rewarded the music purveyor with a nearly 12% increase in share price.
10 stocks we like better than Tencent Music Entertainment Group ›
Investors were happy to crank Tencent Music (NYSE: TME) on Tuesday. Following the release of encouraging quarterly results by the China-based company, they sent its U.S.-traded American Depositary Shares nearly 12% higher in price on the day. That rate crushed the S&P 500 index’s otherwise heartening 1.1% rise.
Music to the market’s ears
In its second quarter, Tencent Music collected 8.44 billion yuan ($1.2 billion) in revenue, a strong (18%) year-over-year improvement for the company. The main driver of this growth was the take from online music services; this rose by 26% to 6.85 billion yuan ($953 million) for the period. Average revenue per user (ARPU) also headed north, rising to 11.7 yuan ($1.63) from 10.7 yuan ($1.49).
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Image source: Getty Images.
Tencent Music’s net income also saw a notable increase in volume. It climbed nearly 38% higher to just under 2.5 billion yuan ($348 million), for a per-ADS figure of 1.55 yuan ($0.22).
Both headline numbers beat the average analyst estimates. Pundits tracking the company’s stock were anticipating it would earn 7.97 billion yuan ($1.1 billion) for revenue and a per-ADS net profit of 1.42 yuan ($0.20).
A one-stop shop for tunes, and fortunes
In its earnings release, Tencent Music quoted executive chairman Cuisson Pang: “As we continue to scale our platform, we are focused on building a vibrant, one-stop music service destination that empowers content creators and reshapes connections with music lovers in meaningful ways.”
The company did not offer any guidance in its earnings release.
Should you invest $1,000 in Tencent Music Entertainment Group right now?
Before you buy stock in Tencent Music Entertainment Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tencent Music Entertainment Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of August 11, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
