Tencent Music Entertainment (TME) reported second-quarter revenue of RMB 8.93 billion ($1.32 billion), up nearly 6% year-on-year, boosted by the completion of its $2.4 billion acquisition of podcast platform Ximalaya and continued double-digit growth in its core music services business. The deal, first announced last June, is intended to help TME move beyond music streaming into podcasts and audiobooks, positioning it to compete more directly with Spotify and Amazon, though music remains the company's principal growth driver for now.

Music-related services revenue rose 11% year-on-year to RMB 7.61 billion ($1.12 billion), driven by an 8.1% increase in membership (subscription) revenue to RMB 4.79 billion ($706 million), while Ximalaya added RMB 407 million ($60 million) to the quarter. Gross profit margin expanded to 44.9%, adjusted EBITDA rose 5.2% to RMB 3.25 billion ($480 million), and net profit attributable to shareholders grew 4.4% to RMB 2.69 billion ($396 million), or RMB 1.70 per share. TME also introduced new features during the quarter, including expanded freemium access, video feeds and a TikTok-style vertical swipe format for music discovery, as CEO Ross Liang highlighted growing SVIP membership and deepening user engagement.