NetEase Cloud Music Hikes Net Profit 75% to RMB2.75B on 35.7% Margin
NetEase Cloud Music posted FY2025 revenue of RMB7.76B, down 2.4% year-over-year, with online music revenue up 12% to RMB6.0B driven by membership subscriptions rising to RMB5.1B. Gross margin improved to 35.7% and net profit surged 75.4% to RMB2.75B, aided by a RMB746.7M deferred tax credit.
1. FY2025 Financial Metrics
NetEase Cloud Music recorded total revenue of RMB7,759.5M for fiscal 2025, a 2.4% decline from RMB7,950.1M in 2024. Gross profit rose 3.3% to RMB2,769.6M, lifting gross margin to 35.7%, while operating profit climbed 38.5% to RMB1,622.0M and net profit jumped 75.4% to RMB2,745.8M, aided by a RMB746.7M deferred tax credit.
2. Business Highlights
Online music services revenue increased 12% to RMB6,000.0M, driven by membership subscription sales growing from RMB4,500.0M to RMB5,100.0M through enhanced user experience and community content. Social entertainment services revenue declined to RMB1,800.0M as the company adopted a more prudent operational strategy to focus resources on its core music ecosystem.