HANGZHOU, China, Aug. 14, 2025 /PRNewswire/ — NetEase Cloud Music Inc. (HKEX: 9899 or the “Company”), a leading interactive music streaming service provider in China, today announced its financial results for the first half of 2025 ended June 30, 2025.
Summary of Key Financial Metrics
(RMB in thousands, unless otherwise stated)
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Six months ended 30 June |
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2025 |
2024 |
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(Unaudited) |
(Unaudited) |
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Revenue |
3,827,117 |
4,070,493 |
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Gross profit |
1,392,485 |
1,425,731 |
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Operating profit |
844,506 |
599,933 |
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Profit before income tax |
1,068,060 |
813,578 |
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Profit for the period (1) |
1,882,142 |
809,949 |
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Non-IFRS Measure(2): |
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Adjusted operating profit |
905,360 |
670,850 |
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Adjusted net profit |
1,946,353 |
880,749 |
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Note:
(1) During the period ended 30 June 2025, the Group recognised a deferred income tax credit of RMB849.4 million which primarily arose from the recognition of deferred tax assets in respect of cumulative tax losses incurred by a wholly-owned subsidiary. These tax losses are available to be carried forward against future taxable income. Deferred tax assets relating to tax losses and temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilised.
(2) Adjusted operating profit and adjusted net profit are defined as operating profit and profit for the period attributable to the equity holders of the Company adjusted by adding back equity-settled share-based payments as appropriate. For details of the reconciliation of the operating profit and the profit for the period attributable to the equity holders of the Company to the adjusted operating profit and the adjusted net profit of our Group, see the section headed “Financial Review” below.
First Half 2025 Key Financial Highlights
- Revenue was RMB3.8 billion, a decrease of 6.0% compared with RMB4.1 billion for the same period of 2024.
- Online music services:
–Revenue from online music services was RMB3.0 billion, an increase of 15.9% compared with RMB2.6 billion for the same period of 2024.
–Revenue from sales of membership subscriptions increased to RMB2.5 billion from RMB2.1 billion for the same period of 2024. - Social entertainment services and others:
–Revenue from social entertainment services and others was RMB859.8 million, compared with RMB1,510.8 million for the same period of 2024. The decrease was mainly due to a more prudent operational approach for social entertainment services, along with a focused emphasis on core music business.
- Online music services:
- Gross profit was RMB1,392.5 million, a slightly decrease of 2.3% compared with RMB1,425.7 million for the same period of 2024.
- Gross margin improved to 36.4% from 35.0% for the same period of 2024.
- Operating profit was RMB844.5 million, an increase of 40.8% compared with RMB599.9 million for the same period of 2024.
- Adjusted operating profit was RMB905.4 million, an increase of 35.0% compared with RMB670.9 million for the same period of 2024.
- Net profit reached RMB1,882.1 million, compared with net profit of RMB809.9 million for the same period of 2024.
- Adjusted net profit reached RMB1,946.4 million, compared with adjusted net profit of RMB880.7 million for the same period of 2024.
Business Overview
We entered 2025 with an unwavering commitment to driving quality development across our core music ecosystem. Throughout the period, we provided our community with an unparalleled music experience, successfully engaging more music lovers while enriching our unique content ecosystem and advancing the growth of original music. Our enhancements focused on premium offerings, including enhanced content, improved personalised distribution, more innovative features and reinforced community …