TME
Tencent Music
Q3 2024 Report
Tencent Music Entertainment Group (TME) Q3 2024 Financial Results: Sustained Growth Amid Challenges...
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Executive Summary
In Q2 2024, Tencent Music Entertainment Group (TME) reported a strong financial performance characterized by a 28% year-over-year growth in revenues from online music services, affirming its position as a leader in the Chinese music streaming market. The total revenue for the quarter reached RMB 7.2 billion, although a slight decline of 2% year-over-year was noted due to weakness in social entertainment revenues. However, net income saw a remarkable increase of 29.6% year-over-year, reaching RMB 1.68 billion, largely driven by higher music subscription revenues and improved average revenue per paying user (ARPPU). Management remains optimistic about the company’s growth trajectory, with over 10 million new music subscribers added in the first half of 2024, indicating robust demand for their services and content.
Key Performance Indicators
Revenue
7.16B
QoQ: 5.79% | YoY:-1.73%
Gross Profit
3.01B
42.00% margin
QoQ: 8.63% | YoY:20.54%
Operating Income
2.20B
QoQ: 12.20% | YoY:42.82%
Net Income
1.68B
QoQ: 18.28% | YoY:29.58%
EPS
1.09
QoQ: 18.48% | YoY:-34.34%
Revenue Trend
Margin Analysis
Key Insights
**Revenue Performance**: TME generated revenues of RMB 7.2 billion for Q2 2024, down 2% YoY but up 5.8% QoQ. The online music segment achieved RMB 5.4 billion, up 28% YoY. **Online Music Subscribers**: The total number of paying users increased to 117 million, an 18% rise YoY, with 3.5 million net adds in the quarter. **ARPPU Growth**: Monthly ARPPU saw a sequential increase to RMB 10.7 from RMB 9.7 in the same period last year, supported by enhanced subscription offerings. **Net Income**: T...