TME-SW released its second-quarter financial results, with a net profit attributable to equity holders of RMB 1.682 billion, an increase of 29.58% year-on-year. The net increase in online music paying users exceeded 10 million

Tencent Music-SW (01698) announced its second-quarter performance for the three months ended June 30, 2024. The group achieved a total revenue of RMB 71.6 billion, a decrease of 1.73% year-on-year; net profit attributable to equity holders was RMB 16.82 billion, an increase of 29.58% year-on-year; basic earnings per share for Class A and Class B ordinary shares were RMB 0.54.

It is reported that online music service revenue grew strongly by 27.7% to RMB 54.2 billion (USD 7.46 billion) compared to RMB 42.5 billion in the same period of 2023, mainly driven by the strong growth in online music subscription revenue and advertising service revenue. Online music subscription revenue reached RMB 37.4 billion (USD 5.15 billion), a 29.4% increase from RMB 28.9 billion in the same period of 2023, driven by the further expansion of online music subscription user base and the increase in average revenue per paying user. In the second quarter of 2024, the number of online music paying users increased by 17.7% year-on-year to 117 million, with an average monthly revenue per paying user of RMB 10.7. The continuous growth in the number of online music paying users is mainly attributed to high-quality content, attractive membership benefits, optimized user operations, and effective promotional measures. The year-on-year growth in advertising revenue is mainly due to the group providing a more diverse product portfolio and innovative advertising formats, including incentive advertising models and sponsorship advertising. In addition, offline concert revenue also contributed to the growth of online music service revenue.

Social entertainment services and other service revenue decreased by 42.8% from RMB 30.4 billion in the same period of 2023 to RMB 17.4 billion (USD 2.39 billion), mainly due to the group's adjustment of certain live interactive functions since the second quarter of 2023 and the implementation of stricter compliance procedures, as well as increased competition from other platforms.

In addition, the group achieved a total revenue of RMB 139.28 billion for the six months ended June 30, 2024, a decrease of 2.53% year-on-year; net profit attributable to shareholders was RMB 31.04 billion, an increase of 26.9% year-on-year; basic earnings per share for Class A and Class B ordinary shares were RMB 1.01.

Pang Yaxin, Executive Chairman of Tencent Music Entertainment Group, said, "In the second quarter, online music services continued to achieve strong growth, driving the group's performance to another record high. In the first half of this year, our net increase in online music paying users exceeded 10 million, while the average revenue per paying user steadily increased, once again demonstrating our continuous breakthrough capabilities in the Chinese music streaming industry. We are full of confidence in the long-term development potential of the industry and adhere to a steady operational pace and balanced development strategy to achieve our medium and long-term goals. With this effective operational strategy, we have successfully coped with various business stages and changing external environments in the past, and it will continue to support our innovation and development in the future."

Zhu Liang, CEO of Tencent Music Entertainment Group, said, "We are committed to continuous platform innovation centered around users. This quarter, both the number of online music subscribers and the retention rate have steadily increased. This achievement is due to our continued enrichment of membership benefits and the unique music experience we provide to our broad user base. We are also pleased to see that through various product upgrades and technological innovations, user stickiness on the platform has increased, making the user's music journey more attractive and enjoyable." ”