Tencent Music beats estimates as more users pay for streaming
The audio entertainment platform reports revenue of $935.9m for the quarter to end-March
13 May 2024 - 19:08
byPrianka G
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
China’s Tencent Music Entertainment Group beat first-quarter revenue estimates on Monday, helped by steady growth in paid subscriptions and advertising services on its Spotify-like music streaming platform.
US listed shares of Tencent Music Entertainment rose 1.8% in premarket trade.
The audio entertainment platform reported revenue of 6.77-billion yuan ($935.9m) for the quarter ended March 31, beating analysts’ expectations of 6.63-billion yuan, according to LSEG data.
Revenue, however, declined 3.4% from a year earlier.
The company has bolstered its growth by capitalising on its position as the largest Chinese music-streaming platform with an attractive licensed music library while continuing to focus on advertising services and artist merchandise.
Paying users at its online music streaming service — a key metric for the company — rose 20.2% to 113.5-million from a year earlier.
The audio entertainment platform, which operates music apps such as QQ music, Kugou music, Kuwo music and WeSing, reported a 39.2% jump in revenue from its music subscriptions to 3.62-billion yuan.
The company’s revenue from online music services rose 43%, driven by solid growth in music subscription revenue.
However, revenue from its social entertainment services dropped 49.7% due to the continued effect of the government’s crackdown on online gambling in 2023 and increased competition from rival NetEase’s Cloud Music and Bytedance-owned short video sharing platform Douyin.
Naspers, which owns about 25% of Tencent through its internet arm Prosus, saw its share price on the JSE rise 2.12% on the day to R3,851. Prosus’ share price was up 1.52% to R684.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Tencent Music beats estimates as more users pay for streaming
The audio entertainment platform reports revenue of $935.9m for the quarter to end-March
China’s Tencent Music Entertainment Group beat first-quarter revenue estimates on Monday, helped by steady growth in paid subscriptions and advertising services on its Spotify-like music streaming platform.
US listed shares of Tencent Music Entertainment rose 1.8% in premarket trade.
The audio entertainment platform reported revenue of 6.77-billion yuan ($935.9m) for the quarter ended March 31, beating analysts’ expectations of 6.63-billion yuan, according to LSEG data.
Revenue, however, declined 3.4% from a year earlier.
The company has bolstered its growth by capitalising on its position as the largest Chinese music-streaming platform with an attractive licensed music library while continuing to focus on advertising services and artist merchandise.
Paying users at its online music streaming service — a key metric for the company — rose 20.2% to 113.5-million from a year earlier.
The audio entertainment platform, which operates music apps such as QQ music, Kugou music, Kuwo music and WeSing, reported a 39.2% jump in revenue from its music subscriptions to 3.62-billion yuan.
The company’s revenue from online music services rose 43%, driven by solid growth in music subscription revenue.
However, revenue from its social entertainment services dropped 49.7% due to the continued effect of the government’s crackdown on online gambling in 2023 and increased competition from rival NetEase’s Cloud Music and Bytedance-owned short video sharing platform Douyin.
Naspers, which owns about 25% of Tencent through its internet arm Prosus, saw its share price on the JSE rise 2.12% on the day to R3,851. Prosus’ share price was up 1.52% to R684.
Reuters
Amazon not bothered by competition from Takealot and others in SA
New Tencent mobile game boosts Naspers and Prosus’ shares
Toyota and Tencent join tech forces in China
South Africa at 30: SA Inc on the starting line
GUGU LOURIE: Underestimating Takealot could be Amazon’s achilles heel
KATE THOMPSON DAVY: Amazon arrives — and it can afford to play the waiting game
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.