Tencent Music Entertainment Group (TME) Cash Flow: Operating & Free Cash Flow

Tencent Music Entertainment Group (TME) Cash Flow Statement

In fiscal 2025 (fiscal year ended Dec 31, 2025), Tencent Music Entertainment Group generated CNY 10.23B of operating cash flow and spent CNY 305.00M on capital expenditures. That left free cash flow of CNY 9.93B, up 7.4% from CNY 9.24B a year earlier, or 30.2% of revenue. It returned CNY 2.71B to shareholders through CNY 2.04B in dividends and CNY 671.00M in share buybacks.

Tencent Music Entertainment Group Cash Flow Statement Analysis

Values in billions CNY

Income Statement Balance Sheet Cash Flow Ratios

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Cash flow statement showing operating, investing, and financing activities for Tencent Music Entertainment Group (TME) - Annual data in billions CNY
Breakdown	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017
Period ending	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019	Dec 2018	Dec 2017
Operating Activities
Net Income	13.28	8.71	6.05	4.37	3.63	4.16	4.54	2.00	1.60
Depreciation & Amortization	1.38	0.98	1.00	1.16	1.00	0.82	0.58	0.37	0.38
Deferred Income Tax	0.00	0.00	0.00	0.00	0.00	-0.06	0.16	0.15	-0.19
Stock Based Compensation	0.67	0.60	0.65	0.67	0.65	0.57	0.52	0.49	0.36
Change in Working Capital	-1.03	1.56	0.79	2.22	0.57	-0.50	0.98	1.39	0.46
Change in Accounts Receivable	-0.36	-0.54	-0.20	0.91	-0.77	-0.52	-0.73	-0.18	-0.45
Change in Inventory	-0.02	-0.02	0.01	0.01	-0.01	0.01	0.01	0.00	-0.02
Change in Accounts Payable	-0.78	1.85	0.05	0.66	0.63	0.64	0.72	0.78	0.00
Change in Other Working Capital	1.36	0.27	1.64	-0.75	1.18	-0.63	0.99	0.79	0.91
Other Operating Activities	-3.48	-1.57	-1.03	-0.75	-0.48	-0.13	-0.58	1.24	-0.11
Net Cash from Operating Activities	10.23	10.28	7.34	7.48	5.24	4.89	6.20	5.63	2.50
Investing Activities
Capital Expenditures	-0.31	-1.03	-0.17	-1.05	-0.16	-0.11	-0.29	-0.14	-0.08
Acquisitions	-1.06	-0.04	-0.01	-0.17	-2.08	-0.54	-0.04	-0.69	-0.02
Purchases of Investments	-24.80	-36.71	-13.69	-34.71	-22.25	-13.23	-12.34	-0.34	-0.06
Sales/Maturities of Investments	16.81	30.89	13.07	34.39	21.08	-0.39	4.59	0.01	0.26
Other Investing Activities	0.01	-0.63	-0.07	-0.89	0.09	0.00	-0.01	-0.02	-0.59
Net Cash from Investing Activities	-10.23	-6.82	-1.86	-1.45	-6.00	-14.21	-8.10	-1.19	-0.48
Financing Activities
Debt Repayment	-2.13	-0.13	-0.12	-0.13	-0.12	5.33	-0.06	0.00	0.00
Common Stock Issued	0.43	0.00	0.06	0.00	0.10	0.16	0.02	7.32	0.00
Common Stock Repurchased	-0.67	-1.93	-1.35	-3.13	-3.58	-0.18	0.00	0.00	0.00
Dividends Paid	-2.04	-1.51	-0.04	0.00	0.00	0.00	-0.03	-0.02	0.00
Other Financing Activities	-0.17	-0.26	-0.13	-0.04	-0.11	-0.02	0.04	0.44	0.10
Net Cash from Financing Activities	-4.65	-3.83	-1.54	-3.42	-3.71	5.29	-0.03	7.74	0.10
Summary
Effect of Forex Changes on Cash	-0.05	-0.03	0.08	0.35	-0.07	-0.27	0.00	0.00	-0.01
Net Change in Cash	-4.69	-0.40	4.01	2.62	-4.54	-4.30	-1.93	12.18	2.10
Cash at Beginning of Period	13.16	13.57	9.56	6.59	11.13	15.43	17.36	5.17	3.07
Cash at End of Period	8.47	13.16	13.57	9.56	6.59	11.13	15.43	17.36	5.17
Free Cash Flow	9.93	9.24	7.17	6.43	5.08	4.78	5.91	5.49	2.42
Supplemental Disclosures
Interest Paid	-	0.12	0.12	0.12	0.11	0.02	-	-	-
Income Taxes Paid	-	1.36	0.83	0.73	0.59	0.64	-	-	-

Source: Company financial statements from annual and quarterly filings. Data as of Jun 30, 2026. Data sources and methodology

Frequently Asked Questions About Tencent Music Entertainment Group Cash Flow

What is Tencent Music Entertainment Group's free cash flow?

Tencent Music Entertainment Group generated free cash flow of CNY 9.93B in fiscal 2025 (fiscal year ended Dec 31, 2025), operating cash flow of CNY 10.23B minus CNY 305.00M of capital expenditures. That was up 7.4% from CNY 9.24B a year earlier. Free cash flow equaled 30.2% of revenue.

How much does Tencent Music Entertainment Group spend on capital expenditures?

Tencent Music Entertainment Group spent CNY 305.00M on capital expenditures in fiscal 2025, compared with CNY 1.03B a year earlier. That equals 3.0% of operating cash flow.

Does Tencent Music Entertainment Group pay dividends or buy back shares?

Yes. In fiscal 2025 Tencent Music Entertainment Group returned CNY 2.04B in dividends and CNY 671.00M in share buybacks to shareholders, according to its cash flow statement.

What is free cash flow?

Free cash flow is operating cash flow minus capital expenditures. It is the cash a company has left for dividends, buybacks, debt repayment or acquisitions after funding its operations and investment. Full definition