Tencent Music Entertainment Group (TME) shares plummeted 16.57% during intraday trading on Tuesday, following the release of its second-quarter financial results. The sharp decline extended a pre-market sell-off triggered by the company's revenue miss.

The company reported non-IFRS earnings of 1.70 Chinese renminbi per diluted ADS, surpassing the analyst consensus estimate of 1.64 renminbi. However, total revenue of RMB8.93 billion (US$1.32 billion) fell short of the US$1.35 billion analyst consensus, despite a 5.8% year-over-year increase. The revenue miss was the primary catalyst for the sell-off, as investors focused on the weaker-than-expected top-line performance. Music-related services revenue grew 11.0% year-over-year, but social entertainment services revenue continued to decline by 16.4%.

The company also highlighted the integration of Ximalaya and an active share repurchase program, but these factors were overshadowed by the top-line shortfall and broader concerns about the slowdown in social entertainment revenue.