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Mar 17, 2026 8:30 AM

China's Tencent Music Sees Shrinking Audience Even As Paying Users Rise

Tencent Music Entertainment (NYSE:TME) shares slid on Tuesday after the company posted fourth-quarter results.

Revenue came in at $1.24 billion, up 15.9% year-over-year (Y/Y), driven by robust growth in online music services. Analysts had projected $1.20 billion.

China's online music and audio entertainment platform's adjusted EPADS of 23 cents (1.60 Chinese yuan) topped the analyst consensus estimate of 21 cents.

Subscription Momentum and User Trends

Revenues from music subscriptions were $653 million, up 13.2% Y/Y.

Monthly active users (MAUs) for online music declined by 5.0% Y/Y to 528 million.

Paying users for online music grew by 5.3% Y/Y to 127.4 million.

The monthly average revenue per user (ARPPU) for online music grew ...