Tencent Music (TME) Earnings Surpass Expectations with 4Q Revenue Beating Estimates and Strong Performance in Online Music Services

Tencent Music‘s 4Q revenue surpassed estimates, reaching 6.89 billion yuan instead of the estimated 6.7 billion yuan.

The operating income also exceeded expectations, coming in at 1.71 billion yuan against the predicted 1.46 billion yuan.

Mobile monthly active users for social entertainment were lower than expected at 104 million, instead of the estimated 125.6 million.

Paying users for online music slightly surpassed estimates, reaching 106.7 million against the predicted 106.09 million.

Paying users for social entertainment also exceeded estimates, reaching 8.0 million instead of the estimated 7.47 million.

Monthly ARPPU for online music was slightly higher than expected, at 10.70 yuan instead of the estimated 10.40 yuan.

Monthly ARPPU for social entertainment was lower than expected, at 78.00 yuan instead of the estimated 83.04 yuan.

Non-IFRS diluted earnings per ADS also beat estimates, coming in at 1.00 yuan against the predicted 97 RMB cents.

The strong performance of online music services helped to counterbalance challenges from social entertainment services and contributed to expanded quarterly net profits.

The company is optimistic about the future, confident in its ability to seize diverse opportunities, thanks to its dual engines of content and platform and the counter-cyclical nature of the online music business.

Expanded user privileges, AI-empowered products, and tools have positively impacted subscriber conversion and retention.

CEO of TME, Mr. Ross Liang, acknowledges the company’s efficiency over the year, attributing it to their laser focus on execution.