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, /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading all-in-one music and audio entertainment platform in China, today announced its public offering of US$1,000 million aggregate principal amount of its senior unsecured notes. The public offering consists of US$500 million of 5.050% notes due 2031 and US$500 million of 5.650% notes due 2036. The notes have been registered under the U.S. Securities Act of 1933, as amended, and are expected to be listed on The Stock Exchange of Hong Kong Limited.

The Company expects to receive net proceeds from the offering of approximately US$991.9 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds from the offering for general corporate purposes, including refinancing of offshore indebtedness and share repurchases.

The joint bookrunners of the offering are J.P. Morgan Securities LLC, Goldman Sachs (Asia) L.L.C. and The Hongkong and Shanghai Banking Corporation Limited. The joint lead managers of the offering are UBS AG Hong Kong Branch, Bank of China Limited and MUFG Securities Asia Limited.

The Company has an automatic shelf registration statement on Form F-3 (including a base prospectus) on file with the U.S. Securities and Exchange Commission (the "SEC") and has filed a related preliminary prospectus supplement with the SEC for the offering of the notes. When available, the final prospectus supplement for the offering of the notes will be filed with the SEC. The offering is being made only by means of the prospectus supplement and accompanying base prospectus. Before you invest, you should read the prospectus supplement and accompanying base prospectus and other documents that the Company has filed with the SEC for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send an investor the prospectus if the investor requests it by calling J.P. Morgan Securities LLC located at 270 Park Ave, New York, NY 10017, USA at +1-212-834-4533, Goldman Sachs & Co. LLC, an affiliate of Goldman Sachs (Asia) L.L.C., located at 200 West Street, New York, NY 10282, USA at +1-866-471-2526 or The Hongkong and Shanghai Banking Corporation Limited, located at L17, HSBC Main Building, 1 Queen's Road Central, Hong Kong at +1-866-811-8049.

This announcement is not an offer of the securities for sale in the United States and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities referred to herein have not been and will not be registered under the applicable securities laws of any jurisdiction outside of the United States.

About Tencent Music Entertainment

Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading all-in-one music and audio entertainment platform in China, operating the country's highly popular and innovative music and audio apps: QQ Music, Kugou Music, Kuwo Music, WeSing and Ximalaya. TME's mission is to create endless possibilities with music and technology. Powered by its content-and-platform dual-engine strategy, TME's expansive offerings extend the value of IP beyond online streaming into offline concerts, artist merchandise, and other IP-centric experiences. TME continuously innovates to deliver a seamless experience where users can discover, listen, sing, watch, perform, and connect across diverse scenarios, while unlocking the enduring value of music and audio IP. For more information, please visit ir.tencentmusic.com. 

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact
Tencent Music Entertainment Group
[email protected]  
+86 (755) 8601-3388 ext. 885034

SOURCE Tencent Music Entertainment Group

As U.S. Debt Surpasses GDP, These 2 ETFs Are Emerging Winners in the “Sell America” TradeTencent Music Entertainment Group NYSE: TME reported second-quarter 2026 revenue of RMB 8.9 billion, up 6% from a year earlier, as growth in music-related services and the consolidation of Ximalaya offset pressure in advertising. Net profit attributable to equity holders rose to RMB 2.5 billion from RMB 2.4 billion in the prior-year period.

Chief Financial Officer Shirley Hu said music-related services revenue increased 11% year over year, supported by membership services and offline performance-related offerings. Membership revenue reached RMB 4.8 billion, up 8% from a year earlier, while Ximalaya contributed about RMB 400 million to total revenue during the quarter.

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The "Spotify of China" Just Got a Whole Lot CheaperThe company reported diluted earnings per ADS of RMB 1.57. Adjusted EBITDA rose 5% year over year to RMB 3.3 billion, while non-GAAP net profit attributable to equity holders increased 4% to RMB 2.7 billion.

Music IP and offline services drive growth Executive Chairman Cussion Pang said marketing and consumption services continued to expand through concerts, merchandise and other IP-driven experiences. The company said IP-related consumption services, especially live events and artist merchandise, recorded strong double-digit year-over-year growth during the quarter.

These 3 Stocks Just Rewarded Investors With Big Dividend BumpsTencent Music cited concerts and artist-development initiatives involving rapper Zhou Yan, singer Tia Ray and actor and singer Steven Zhang. Pang said the opening show of Zhou Yan’s stadium tour in Xi’an drew more than 30,000 fans, while Tia Ray’s tour concluded with two sold-out arena shows in Hangzhou.

The company also highlighted the expansion of its TIMA concert brand, which moved to Kai Tak Sports Stadium in Hong Kong in its second year. Tencent Music said it increased audience capacity by more than three times from the prior year.

Hu said offline performance-related services generated robust results, including concerts for strategically collaborating artists Silence Wang and Sam Fish. Digital album sales also performed solidly, she said, led by the release of Jeff Chang’s album, Children of the Sun.

Pang said Tencent Music is expanding partnerships beyond music licensing into content co-creation, physical products and offline experiences. The company recently deepened its partnership with Three Music Group and invested in The Black Label to support artist promotion and merchandise development.

Ximalaya broadens audio strategy Management described the addition of Ximalaya as a key expansion of Tencent Music’s content and platform strategy. The company said the audio platform adds audiobooks, podcasts, online novels, history, children’s content and educational programming, creating more listening occasions and potentially increasing user engagement.

Pang said nine of Ximalaya’s top 10 new online-novel titles this year were produced in-house, which he said demonstrates the platform’s original-content capabilities and offers better economics from owned hits.

Chief Executive Officer Ross Liang said Tencent Music has begun adding premium audio content to its SVIP membership offering. Over time, the company also sees opportunities to improve advertising efficiency through shared technology and infrastructure following the Ximalaya consolidation.

During the question-and-answer session, Liang said Ximalaya brings a user base that includes white-collar and female users in China’s Tier 1 and Tier 2 cities. He also pointed to opportunities to deepen ties with China Literature for audiobook adaptations and with Tencent Video for audio versions of popular video programming.

Advertising faces headwinds; margins expected to ease Hu said the advertising business, particularly its ad-supported model, is facing headwinds amid a challenging macroeconomic environment and competitive market. The company is seeking to improve advertising exposure, entry rates and effective cost per mille, or eCPM, while introducing more interactive products and expanding distribution through Tencent’s ecosystem.

Gross margin was 44.2% in the second quarter, compared with 44.4% a year earlier. Hu said changes in revenue mix affected the result as offline performance-related services became a larger part of revenue. She added that Ximalaya had a favorable impact on gross margin in the quarter after accounting for intangible-asset amortization recorded in purchase accounting.

Operating expenses totaled RMB 1.3 billion, or 14.5% of revenue, compared with 13.7% a year earlier. Hu said the company reduced channel spending and shifted toward higher-return projects, while relying more heavily on collaborations across the Tencent ecosystem, including WeChat video accounts, WeChat Pay, Tencent Video and Tencent Games.

For the second half, Hu said Tencent Music expects gross margin to decline slightly year over year. She said sales expenses and operating expenses are expected to rise modestly for the full year, net margin is expected to decrease slightly, and EBITDA is expected to edge higher.

SVIP, AI and shareholder returns remain priorities Liang said the company is working to protect and expand its higher-value SVIP user base through premium music, audio content, digital albums, merchandise, photo cards, NFC cards and gaming-related member benefits. He said casual and light users have been more affected by competitive conditions than high-value users.

Tencent Music also continued to introduce AI-based discovery tools, including upgraded AI agents on QQ Music and Kugou that can generate personalized playlists. Liang said the integration with Weixin’s Xiaowei AI agent remains in testing, but users are already using it to create playlists, share songs and stream music through voice or text commands.

Management said AI is primarily intended to improve engagement, activity and efficiency, though Liang said the company has also generated commercial returns from AI music-generation functions in its apps.

As of June 30, Tencent Music had RMB 44.2 billion in combined cash equivalents, term deposits and short-term investments, up from RMB 41 billion at March 31. Under its repurchase program, the company bought back 43.5 million ADSs for $400 million during the second quarter. Pang said Tencent Music remains on track to complete its existing $1 billion shareholder-return program and is preparing for another round of repurchases.

About Tencent Music Entertainment Group (NYSE:TME)Tencent Music Entertainment Group NYSE: TME is a China-based digital music and audio entertainment platform that operates a portfolio of leading music streaming and social entertainment services. Its core consumer-facing products include streaming apps, online karaoke (KTV) services and live music and entertainment broadcasts. The company monetizes its content through a mix of subscriptions, digital music sales, in-app purchases, virtual gifting, advertising and licensing arrangements with rights holders.

The company traces its roots to the consolidation of Tencent's music assets and was established in the mid-2010s to unify several prominent music properties under a single operating entity.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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