China’s Tencent Music Entertainment Group posted total revenues of RMB8.93 billion ($1.32 billion) for the second quarter of 2026 – a 5.8% year-over-year gain – as its music services arm delivered double-digit growth and the newly integrated Ximalaya platform began contributing to the bottom line.
Music-related services revenues reached $1.12 billion, up 11% year-over-year, with membership services alone accounting for $706 million, an 8.1% increase. Ximalaya, the long-form audio platform whose acquisition closed on May 18, contributed $60 million in revenue during the quarter – its first period fully consolidated into TME’s financial statements.
On a non-IFRS basis – a reporting framework that strips out items such as share-based compensation and acquisition-related amortization to give a cleaner view of operating performance – adjusted EBITDA came in at $480 million, up 5.2% year-over-year. Non-IFRS net profit attributable to equity holders rose 4.4% to $396 million. On the same non-IFRS basis, diluted earnings per ADS – each ADS, or American Depositary Share, represents two of TME’s Class A ordinary shares and is the unit in which the stock trades in New York – reached RMB1.70 ($0.25), compared with RMB1.66 in the same period of 2025. The company’s cash, cash equivalents, term deposits and short-term investments stood at $6.52 billion as of June 30. During the quarter TME also repurchased 43.5 million ADSs for approximately $400 million.
