TME
Tencent Music
Q3 2024 Report
Tencent Music Entertainment Group (TME) Q3 2024 Financial Results: Sustained Growth Amid Challenges...
Read full report
Executive Summary
Tencent Music Entertainment Group (TME) delivered strong performance in Q3 2023, with total revenues of CNY 6.57 billion, down 11% year-over-year due to a significant decline in social entertainment services. However, the online music segment performed remarkably well, with revenues increasing by 33% to CNY 4.6 billion, fueled by a growing subscriber base and improved average revenue per paying user (ARPPU). The company's strategic pivot towards enhancing its core music subscription service has positioned it favorably for future growth, as indicated by management's positive outlook for subscriber acquisition and engagement. The overall gross profit margin improved to 35.7% from 32.6% a year prior, reflecting more favorable revenue mix and operational efficiencies. Management emphasized the resilience and robustness of TME's music service amid challenging market conditions, enhancing the company's long-term growth trajectory.
Key Performance Indicators
Revenue
6.57B
QoQ: -9.84% | YoY:-10.81%
Gross Profit
2.34B
35.65% margin
QoQ: -6.21% | YoY:-2.54%
Operating Income
1.43B
QoQ: -7.41% | YoY:13.01%
Net Income
1.17B
QoQ: -10.02% | YoY:10.08%
EPS
0.74
QoQ: -55.42% | YoY:10.45%
Revenue Trend
Margin Analysis
Key Insights
- Total Revenue: CNY 6.57 billion (YoY -10.81%, QoQ -9.84%)
- Online Music Revenue: CNY 4.6 billion (YoY +33%)
- Paid User Base: 103 million (YoY +21%)
- Monthly ARPPU: RMB 10.3 (YoY +17%, QoQ +6%)
- Gross Margin: 35.7% (up from 32.6% YoY)