China's Netease Cloud Music H1 revenue rises on larger subscriber base

Netease Cloud Music

20/08/2026 09:43

Overview
China online music platform's H1 revenue rose 3.4% yr/yr
Adjusted net profit for H1 fell 55.8% yr/yr
Company says revenue growth driven by expanded subscriber base, partly offset by ARPPU dilution

Outlook
NetEase Cloud Music plans to deepen copyright-holder ties and independent artist incubation, focusing on signature genres
 
The Company plans to improve music recommendations and listening features while broadening community interaction scenarios

Result Drivers
SUBSCRIBER BASE EXPANSION - Co said revenue growth was driven by a larger subscriber base
ARPPU DILUTION - Co said revenue growth was partly offset by lower average revenue per paying user due to changes in subscriber mix

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 3.96 bln
 
H1 Adjusted Net Profit
 
RMB 859.66 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for Netease Cloud Music Inc is HK$219.50, about 93.4% above its August 19 closing price of HK$113.50
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 18 - China's iQIYI Q2 net loss widens on higher income tax expense
Aug 19 - China short video platform Kuaishou Q2 profit hit by higher costs, revenue inches up
Aug 19 - Weibo Q2 profit slips on weak gaming demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)