SHENZEN, China (CelebrityAccess) — Chinese music streamer and social media giant Tencent Music Entertainment Group (TME) announced its financial performance for the fourth fiscal quarter and full year of 2023, with declines in revenue despite a boost from music streaming.
For Q4, TME reported total revenues of RMB6.89 billion (US$971 million), marking a 7.2% decrease compared to the previous year. This decline was primarily attributed to a decrease in revenues from social entertainment services and other segments. However, the growth in revenues from online music services partially offset this decline.
Revenues from music subscriptions saw a significant increase, reaching RMB3.42 billion (US$481 million), indicating a 45.3% year-over-year growth. The number of paying users also rose by 20.6% compared to the previous year, totaling 106.7 million users, showing an increase of 3.7 million from the third quarter of 2023.
Net profit for the fourth quarter was reported at RMB1.41 billion (US$198 million), reflecting a 16.9% year-over-year growth. Diluted earnings per ADS stood at RMB0.83 (US$0.12), up from RMB0.72 in the same period of 2022. TME’s total cash, cash equivalents, and term deposits as of December 31, 2023, were RMB32.22 billion (US$4.54 billion).
For the full year 2023, TME reported total revenues of RMB27.75 billion (US$3.91 billion), indicating a 2.1% year-over-year decrease. However, revenues from music subscriptions surged by 39.1% year-over-year, amounting to RMB12.10 billion (US$1.70 billion).
Notably, TME attributed growth in its music business, in part, to its success in the live sector and reported hosting a “growing number of offline music events in multi-faceted performance formats in 2023.”
“2023 marked a pivotal transition at TME. As we continue to shape and propel the music industry’s robust development, we are excited about its vibrant growth potential for years to come. The fourth quarter recorded accelerated year-over-year growth in music subscription revenue, anchored by consistent increases in subscribers and ARPPU. Online music services’ strong performance mitigated headwinds from social entertainment services and contributed to expanded quarterly net profits. Looking ahead, we are well positioned to capture more multi-faceted opportunities, underpinned by our content and platform dual engines and supported by the online music business’ relatively counter-cyclical nature,” stated Cussion Pang, Executive Chairman of TME.
“Our laser focus on execution resulted in a year of efficiency. Deeper insights into users and content not only enhanced our operational efficiency but also allowed us to make music journeys more personalized for our users. Expanded user privileges, together with AI-empowered products and tools, contributed positively to subscriber conversion and retention. For 2024, we remain dedicated to delivering a more compelling user experience and easier access to music across a broader range of use cases,” added Mr. Ross Liang, CEO of TME.
