NetEase Music (09899) announced its interim results for the six months ended June 30, 2025, reporting total revenue of RMB 3.827 billion. The company recorded profit attributable to equity holders of RMB 1.885 billion, representing a year-on-year increase of 132.83%. Basic earnings per share reached RMB 8.96, while adjusted net profit totaled RMB 1.946 billion, up 120.99% compared to the same period last year.
According to the announcement, online music service revenue increased 15.9% to RMB 2.967 billion for the six months ended June 30, 2025, compared to RMB 2.56 billion for the same period in 2024. The group's continuous efforts to enhance user experience, upgrade membership benefits, and enrich music community content drove sustained growth in monthly paying users for online music services, boosting membership subscription revenue from RMB 2.144 billion in the first half of 2024 to RMB 2.47 billion in the first half of 2025.
The group continues to maintain strong user stickiness in its growing music-centric social community. Driven by improved user experience and expanded brand influence, the group maintained steady growth momentum in total monthly active users during the first half of 2025. Meanwhile, the group's daily active users to monthly active users ratio grew steadily, remaining consistently above 30%. Mobile listening time also increased, reflecting higher user engagement.
The group's diversified initiatives focusing on premium content and user experience continue to attract music enthusiasts and convert them into loyal platform fans. During the first half of 2025, the group continued to enrich its unique content library, creating diverse music choices tailored for audiences while actively promoting original Chinese music. The group further expanded its copyright content library, including popular Korean music labels such as RBW and StarShip Entertainment, as well as works from renowned Chinese musicians.
The group maintains a strong roster of independent musicians and continues to focus on developing self-produced music. Recently, several self-produced tracks including "Two Dilemmas" gained popularity both on and off the platform.
In terms of product focus, the group continuously enhanced premium music listening experiences and improved personalized recommendations to meet user needs. During the first half of 2025, the group further upgraded and optimized its main product to make it more visually appealing, streamlined, and user-friendly. The group optimized music discovery and consumption experiences, providing superior audiovisual experiences through advanced personalized distribution and innovative features like the "Divine Light Player."
Additionally, the group strengthened its music community by expanding and enhancing interactive scenarios to boost user activity and engagement. During the first half of 2025, the group focused on strengthening music-centric monetization capabilities, achieving steady growth. Membership subscription revenue increased 15.2% year-on-year, primarily benefiting from membership scale growth, though slightly offset by dilution in average revenue per paying user due to changes in membership structure.
The group launched various premium services, including richer content, innovative features, and upgraded membership benefits such as functional tools, social features, and customization privileges. Notably, the group's rapidly growing membership base demonstrated higher engagement and improved retention rates during the reporting period.
During the first half of 2025, the group's profitability further improved. The group's gross margin reached 36.4% in the first half of 2025, representing a significant improvement compared to the same period in 2024, benefiting from business scale expansion, strong monetization levels of core online music business, and continuous cost optimization.