TME
Tencent Music
Q3 2024 Report
Tencent Music Entertainment Group (TME) Q3 2024 Financial Results: Sustained Growth Amid Challenges...
Read full report
Executive Summary
In the fourth quarter of 2023, Tencent Music Entertainment Group (TME) demonstrated solid financial performance, despite a year-over-year revenue decline attributed primarily to social entertainment service adjustments. The company achieved revenue of CNY 6.89 billion, a 41% increase in online music revenue, reflecting a sustained focus on subscription growth and premium user experiences. TME's strategic emphasis on partnerships and content differentiation led to a significant rise in both paying subscribers and average revenue per paying user (ARPPU), fostering a positive outlook heading into 2024. Management indicated growth potential is underpinned by an expanding catalog and technological innovation, positioning TME favorably within the competitive landscape.
Key Performance Indicators
Revenue
6.89B
QoQ: 4.93% | YoY:-1.58%
Gross Profit
2.64B
38.31% margin
QoQ: 12.77% | YoY:14.08%
Operating Income
1.71B
QoQ: 20.28% | YoY:24.11%
Net Income
1.31B
QoQ: 11.82% | YoY:13.76%
EPS
0.84
QoQ: 13.51% | YoY:13.51%
Revenue Trend
Margin Analysis
Key Insights
**Revenue Analysis**: TME reported Q4 2023 revenues of CNY 6.89 billion, down 7% YoY, yet online music services surged 41% YoY to CNY 5 billion due to robust subscription growth. **Profitability Ratios**: Net income stood at CNY 1.31 billion, marking a YoY increase of 13.76%. The company's gross margin improved to 38.3%, a 5.3 percentage point uptick YoY, reflecting better content cost management and increased subscription revenues. **Cash Flow Insights**: Net cash provided by operating a...