Did Tencent Music’s Q3 Revenue Surge Just Shift TME’s Investment Narrative?

• Tencent Music Entertainment Group recently reported its third quarter 2025 results, posting revenue of CNY 8,463 million and net income of CNY 2,153 million, significantly higher than the previous year.
• This marked increase in both earnings and revenue highlights the company's momentum, with basic earnings per share from continuing operations rising to CNY 1.4 for the quarter.
• We will explore how Tencent Music Entertainment Group's strong earnings growth this quarter shapes the outlook for its future profitability and risks.

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Tencent Music Entertainment Group Investment Narrative Recap

Being a shareholder in Tencent Music Entertainment Group often means believing in its ability to keep growing its digital music subscription and content businesses, while managing risks tied to regulatory scrutiny and shifting user trends. The latest earnings news shows strong revenue and profit gains, which reinforces the near-term appeal of its core digital business; however, it does not remove concerns about increased regulatory oversight, especially within new business initiatives.

Among recent company announcements, talks to acquire Ximalaya for US$2.4 billion stand out as particularly relevant, given the spotlight on expanding into original content and podcasts. This acquisition, if completed, may affect how quickly Tencent Music can diversify revenue and respond to evolving digital consumption habits, key factors underpinning its future growth potential.

Yet, despite impressive earnings, investors should pay close attention to ongoing regulatory scrutiny in China’s internet and media sector, as...

Read the full narrative on Tencent Music Entertainment Group (it's free!)

Tencent Music Entertainment Group's outlook anticipates CN¥45.8 billion in revenue and CN¥13.7 billion in earnings by 2028. This is based on a 14.8% annual revenue growth rate and a CN¥3.5 billion increase in earnings from the current level of CN¥10.2 billion.

Uncover how Tencent Music Entertainment Group's forecasts yield a $27.47 fair value, a 51% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community have estimated Tencent Music’s fair value from CN¥14.06 up to a bullish CN¥17,578.19. Some see sustained digital music growth as a critical catalyst, so it is worth weighing these varied outlooks when considering Tencent Music’s future.

Explore 5 other fair value estimates on Tencent Music Entertainment Group - why the stock might be a potential multi-bagger!

Build Your Own Tencent Music Entertainment Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tencent Music Entertainment Group research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Tencent Music Entertainment Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tencent Music Entertainment Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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