SHENZHEN, China (CelebrityAccess) — Chinese music streaming service Tencent Music Entertainment Group revealed that profits were up sharply in the company’s third fiscal quarter of 2022.
According to Tencent, net profits during the quarter hit RMB1.09 billion (US$154 million), up by 38.7% year-over-year and a 22.5% increase from Q2 2022.
However, total revenue during the third quarter declined, with TME recording RMB7.37 billion (US$1.04 billion) during the period, down by 5.6% year-over-year but an improvement of 6.7% increase from Q2 2022.
During Q3, TME reported that paying users for streaming music increased to 71.2 million, up by 19.8% year-over-year. At the same time, TME’s monthly average user count fell to 587 million, down from 636 million in Q3 2022.
“As we are employing a balanced approach to grow paying users and ARPPU, revenues from online music services increased at a healthy pace in the third quarter, driven by year-over-year gains in subscriptions. Meanwhile, effective cost optimization measures and improved operating efficiency led to increased profitability amid challenging macro conditions this quarter,” said Mr. Cussion Pang, Executive Chairman of TME.
“Leveraging our dual engine content-and-platform strategy, we introduced more resources and optimized services to furnish music content creators and musicians with the tools they need and music lovers with the sounds and features they want. Each new element we offer drives the development of our business and the overall industry. Furthermore, completing our listing on the Main Board of The Stock Exchange of Hong Kong, in addition to our primary listing on the NYSE, demonstrates our commitment to protecting long-term value for shareholders. Also, as a token of confidence in our Company’s bright future, as of the end of the third quarter, we had repurchased over $800 million of our stock, pursuant to the $1 billion share repurchase program we announced last year,” Mr. Cussion Pang added.
