SHENZHEN, CHINA (CelebrityAccess) – Tencent Music Entertainment Group (TME), one of China’s leading online music and audio entertainment platforms, today announced its financial results for the first quarter ended March 31, 2024. It declared its annual cash dividend for the year ended December 31, 2023.
First Quarter 2024 Financial Highlights
- Total revenues were RMB6.77 billion (US$937 million), representing a 3.4% year-over-year decrease. This was mainly due to the decline in revenues from social entertainment services and others, which was partially mitigated by strong year-over-year growth in revenues from online music services.
- Revenues from music subscriptions were RMB3.62 billion (US$501 million), representing 39.2% year-over-year growth. The number of paying users increased by 20.2% year-over-year to 113.5 million. Sequentially, the number of paying users grew by 6.8 million, the largest quarter-over-quarter net increase to date.
- Net profit was RMB1.53 billion (US$212 million), growing 27.5% year-over-year. The net profit attributable to the Company’s equity holders was RMB1.42 billion (US$197 million), growing by 23.9% year-over-year. Non-IFRS net profit[1] was RMB1.81 billion (US$251 million), representing 23.9% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company[1] was RMB1.70 billion (US$236 million), representing 20.8% year-over-year growth.
- Diluted earnings per ADS was RMB0.91 (US$0.13), up from RMB0.73 in the same period of 2023.
- Total cash, cash equivalents and term deposits as of March 31, 2024 were RMB34.18 billion (US$4.73 billion).
- An annual cash dividend of approximately US$210 million will be paid to shareholders as of the record date for the year ended December 31, 2023.
Mr. Cussion Pang, Executive Chairman of TME, commented, “We kicked off 2024 with impressive results. Online music grew robustly, registering record-high net adds of 6.8 million music subscribers with healthy ARPPU for the first quarter. Our focus on high-quality growth also yielded solid net profit margin expansion. By broadening content and introducing more tailored platform offerings that resonate deeply with users, we continue to strengthen our vibrancy and competitiveness in this dynamic industry.”
Mr. Ross Liang, CEO of TME, continued, “Drawing on our extensive industry experience and capitalizing on the Chinese New Year seasonality, our effective marketing campaigns led to higher-than-expected first-quarter music subscriber growth. Meanwhile, we are pleased to see a steady user base recovery thanks to our optimized operations efforts. Through enhanced algorithms, product features and AIGC applications, we are consistently creating more compelling music experiences that deepen users’ engagement on our platform.”
