Tencent Music Stock Price Drops Over 20% Due to Lackluster Q4 Earnings

LootboxPhobia · 2026-03-18T08:24:30+00:00

Tencent Music Entertainment Group's stock plummeted more than 20% on Wednesday, despite achieving solid revenue and profit growth in the first three quarters. Quarterly revenue reached 8.64 billion yuan, up 15.9% year-over-year, but slowing user growth disappointed the market. For the full year, revenue growth reached 15.8% to 32.9 billion yuan.

LootboxPhobia

2026-03-18 08:24:30

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Investing.com - Tencent Music Entertainment Group (HK:1698) stock plummeted over 20% on Wednesday, despite steady growth in revenue and profit, as investors reacted negatively to its Q4 performance.

The company reported quarterly revenue of 8.64 billion RMB, up 15.9% year-over-year, mainly driven by robust expansion in its online music business. Net profit attributable to shareholders increased by 12.6% to 2.2 billion RMB.

However, compared to market expectations, this performance was seen as mediocre, especially as user growth showed signs of slowing. Monthly active users in online music declined 5% year-over-year to 528 million, despite a 5.3% increase in paying users to 127.4 million.

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The company’s Hong Kong-listed shares dropped as much as 24%, to HKD 43.6.

Subscription revenue growth remained stable at 13.2%, while non-subscription music services surged over 40%, supported by advertising and offline concerts.

Tencent Music announced that starting next quarter, it will stop reporting certain key operational metrics, such as monthly active users and average revenue per user.

For the full year, revenue grew 15.8% to 32.9 billion RMB, while net profit soared 66.4% driven by one-time gains.

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