SHENZEN, China (CelebrityAccess) — Tencent Music Entertainment Group (TME) announced the the company’s 2Q results, revealing a sharp increase in profits during the quarter.
According to TME, revenue fell slightly by 1.7% year-over-year to RMB7.16 billion (US$985 million), with results impacted by the poor performance of the company’s social entertainment operations.
At the same time, TME reported that net profit rose to RMB1.79 billion (US$247 million), representing a 33.1% year-over-year improvement over 2023.
Additionally, while overall monthly active users for TME’s music streaming services declined by 3.9% to 571 million during the quarter, the company’s tally of paying users rose by 17.7% during the period to 117 million.
As well, average revenue per user for TME’s online music offerings rose by 10.3% to 10.7 (RMB).
Despite the success of TME’s music streaming the company’s social entertainment segment weighed on 2Q results. According to TME, the company’s social entertainment and games segment shed 31.6% of its monthly active users during the second quarter while average revenue per user for the segment fell by 45.8% to 73.2 RMB.
Revenues from social entertainment services and others saw a sharp decrease, falling by 42.8% to RMB1.74 billion (US$239 million) from RMB3.04 billion year-over-year.
“We are pleased to report another quarter of robust results, driven by the strong performance of our online music services. With over 10 million net subscriber additions in the first half of 2024 and ARPPU expansion, we continue to break new grounds within China’s streaming landscape. We remain optimistic about the music industry’s long-term potential and are committed to sustainably achieving our mid- to long-term goals, at a healthy pace and with the right balance. This approach has been instrumental in the past as we effectively navigated across various development stages and changing external environments, and it will continue to fuel innovation and growth for the years to come,” stated TME Executive Chairman Cussion Pang.
“Our focus on user-centric innovation continued to pay off, as we have seen a steady increase in both online music subscribers and retention. This achievement is the result of further enriched membership benefits as well as unique streaming experiences delivered to a broader user base. We are delighted to see improved user loyalty on our platform, thanks to multi-faceted product and technological advancements that bring out increasingly engaging and entertaining music journey for each user,” added CEO Ross Liang.
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