NetEase Music (09899) has released its interim results for the 2026 fiscal year, showing revenue of approximately RMB 3.959 billion, a 3.4% increase year-on-year. Gross profit reached around RMB 1.474 billion, up 5.9%, while net profit stood at approximately RMB 809 million. Adjusted net profit for the period was about RMB 860 million.
The online music services segment saw revenue climb 3.4% to RMB 3.067 billion, driven primarily by membership subscription income rising from RMB 2.47 billion to roughly RMB 2.6 billion during the same period. The company continues to sharpen its focus on the core music business, enriching its content library, optimizing product features, and enhancing personalized experiences to elevate user satisfaction.
Social entertainment services and other revenue increased 3.7% to RMB 891 million. Throughout the first half of 2026, NetEase Music has strengthened its community ecosystem centered on music, boosting user activity and growing daily active users through improved user experience and reinforced brand recognition. The DAU/MAU ratio has remained above 30%, showing consistent growth both sequentially and year-on-year.
Average daily music listening duration on mobile devices has been steadily increasing, while community content consumption and interaction penetration have also improved notably. Notably, as the platform's membership base expands, retention and renewal rates have maintained a stable upward trend on both sequential and annual bases, reflecting growing user loyalty and platform stickiness.
The company remains dedicated to attracting young music enthusiasts. Its unique music offerings, trendsetting aesthetic, and distinctive emotional resonance continue to drive word-of-mouth promotion. NetEase Music has also expanded into additional devices and scenarios, including collaborations with NetEase (09999) gaming, opening new channels to reach and engage younger audiences.
During the first half of 2026, membership subscription revenue sustained steady growth, supported by an expanding member base, though partially offset by dilution in monthly ARPPU (average revenue per paying user) resulting from shifts in member composition. The company has further refined its membership benefits system, encompassing content, features, decorative perks, and musician-related services. Beyond delivering premium content, NetEase Music has crafted more distinctive emotional experiences and innovative interactive gameplay. These enhancements have not only increased users' willingness to pay for premium experiences but also contributed to higher member retention rates.