Description

Tencent Music’s Ximalaya Bet — Can Audio Unlock The Next Big Growth Engine?

Tencent Music Entertainment Group reported second quarter 2026 financial results, reflecting a 6% year-over-year revenue increase to RMB 8.9 billion. Growth was primarily driven by music-related services, which rose 11%, supported by expanding membership services and offline performance revenues. The consolidation of Ximalaya, a premium audio platform, contributed approximately RMB 0.4 billion to overall revenues, complementing Tencent Music’s music content with audiobooks, podcasts, and long-form audio offerings. This strategic acquisition is positioned to broaden content reach and enhance user engagement across more listening occasions, although it also contributed to increased operating expenses linked to intangible asset amortization. Tencent Music’s IP-related business showed solid momentum, with marketing and consumption services producing double-digit year-over-year growth. The company highlighted progress in strengthening its content ecosystem through original music productions, strategic partnerships, and proprietary IP development.