Tencent Music Entertainment Group (TME) announced the company’s second-quarter results, showing a significant increase in profits during the quarter.
According to TME, revenue fell slightly by 1.7% year-on-year to 7.16 billion yuan ($985 million), with its performance affected by the poor performance of the company’s social entertainment business.
Meanwhile, TME reported net profit rose to 1.79 billion yuan ($247 million), an annual increase of 33.1% from 2023.
In addition, while overall monthly active users of TME’s music streaming service fell 3.9% to 571 million in the quarter, the company’s total paid users increased 17.7% to 117 million during the period.
In addition, the average revenue per user of TME’s online music products increased by 10.3% to 10.7 yuan (RMB).
Despite the success of TME’s music streaming, the company’s social entertainment business weighed on second-quarter results. According to TME, the number of monthly active users of the company’s social entertainment and gaming business decreased by 31.6% in the second quarter, while the average revenue per user of this business fell by 45.8% to 73.2 yuan.
Social entertainment services and other revenue fell sharply, from 3.04 billion yuan in the same period last year to 1.74 billion yuan ($239 million), a decrease of 42.8% from the same period last year.
“We are pleased to report another quarter of strong results, driven by the strong performance of our online music services. With more than 10 million net user growth in the first half of 2024 and expanding ARPPU, we continue to pioneer in China’s streaming space. New World. We remain optimistic about the long-term potential of the music industry and are committed to achieving our mid- to long-term goals sustainably at a healthy pace and with the right balance. This approach has played an important role in helping us to effectively span various developments. stage and the changing external environment, and will continue to drive innovation and growth in the coming years.
“Our focus on user-centric innovation continues to pay off, as we see steady growth in both online music subscriber and retention rates. This achievement is driven by further enrichment of membership benefits and the creation of new features for a broader user base We are excited to see user loyalty increase on our platform thanks to the multifaceted product and technology advancements that make it increasingly engaging and entertaining for every user. A musical journey of sex,” added CEO Rose Leong.
