Tencent Music Entertainment Group's stock fell sharply by 12.13% during pre-market trading on Tuesday, following the release of its fourth-quarter and full-year 2025 financial results.
The company reported revenue and adjusted earnings per share that surpassed analyst estimates, with total revenues increasing 15.9% year-over-year. However, a significant contraction in its user base was revealed, as monthly active users (MAUs) for online music services declined by 5.0% compared to the prior year.
This decline in the core MAU metric, a key indicator of platform engagement and growth potential, appears to have driven negative investor sentiment despite the positive top and bottom-line figures. The company also announced a planned change to its financial disclosures, stating it will stop reporting certain quarterly operating metrics like MAU and paying users, shifting focus solely to revenue and profit indicators starting next quarter.