Tencent Music Entertainment Group (TME) saw its stock surge 14.40% on Tuesday following the release of its impressive second-quarter financial results. The Chinese music streaming giant reported revenue of 8.44 billion yuan ($1.18 billion), surpassing analysts' expectations and marking a 17.9% year-over-year increase.

The company's strong performance was primarily driven by robust growth in its online music services, particularly in music subscriptions. Revenue from music subscriptions grew 17.1% year-over-year to 4.38 billion yuan ($611 million), while the number of paying users for online music increased by 6.3% to 124.4 million. Tencent Music also reported a significant 9.3% increase in monthly average revenue per user (ARPPU) for online music, reaching 11.7 yuan.

Investors were particularly encouraged by Tencent Music's success in long-form audio content, such as podcasts and audiobooks, which has led to increased user engagement. The company's Super VIP program, which offers premium features and exclusive content, has surpassed 15 million subscribers, demonstrating strong user loyalty. Additionally, Tencent Music's recent agreement to acquire domestic long-form audio platform Ximalaya for about $2.4 billion is expected to further strengthen its content offerings and attract more paying users across its apps.