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Visitors are shown at Tencent Music Entertainment’s booth at the Beijing Music and Life Show in this May 2017 file photo. Picture: REUTERS
Visitors are shown at Tencent Music Entertainment’s booth at the Beijing Music and Life Show in this May 2017 file photo. Picture: REUTERS

China's Tencent Music Entertainment beat estimates for third-quarter revenue on Tuesday, helped by steady growth in paid subscriptions on its music streaming platform.

Tencent Music, which includes platforms such as QQ Music, Kugou Music, Kuwo Music and WeSing, has won listeners over by bundling everything from karaoke platforms to live concert streaming services.

Total revenue of the Tencent-controlled company, however, fell to 6.57-billion yuan ($900.9m) in the third quarter. Analysts were expecting revenue of 6.31-billion yuan, according to LSEG data.

The company’s social entertainment services posted a nearly 50% drop in revenue as Beijing's crackdown on online gambling continues to cast a shadow over its livestreaming revenue, after it shut down features like virtual lucky draws.

Excluding items, the company earned 89 yuan per American depository share (ADS), slightly above expectations of a profit of 88 yuan per ADS.

Paying users for its online music streaming service rose to 103 million in the quarter, from 85.3-million in the same quarter last year.

Net profit attributable to equity holders of the company rose to 1.71-billion yuan, from 1.06-billion yuan a year earlier. 

Reuters

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