Tencent Music Entertainment Group (TME) Q1 2024 Earnings Report

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Tencent Music

TME

$18.58 -0.75%

Exchange: NYSE | Sector: Communication Services | Industry: Internet Content Information

Q1 2024

Published: Mar 19, 2024

Earnings Highlights

Revenue of $6.77B down 8.9% year-over-year
EPS of $0.92 increased by 24.3% from previous year
Gross margin of 40.9%
Net income of 1.42B
"‘The number of music-paying users increased to 113.5 million, totaling 43% of the overall growth in online music revenues.’ - Kar Shun Pang, Executive Chairman" - Kar Shun Pang

TME

Tencent Music Entertainment Group

Period Q1 2024

Currency CNY

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Tencent Music Entertainment Group (TME) reported strong results for the first quarter of 2024, achieving a 43% year-over-year revenue growth in its online music services alongside a substantial improvement in profitability metrics. The company successfully increased its number of music-paying users to 113.5 million, contributing to an overall healthy ARPPU increase. Key strategies driving these results include enhanced content offerings, strategic partnerships, and a focus on user engagement. Despite a slight decline in overall revenue due to challenges in social entertainment services, TME is well-positioned for continued growth in the online music market, reinforced by robust operational management and innovative technological integration.

Key Performance Indicators

Revenue

Decreasing

6.77B

QoQ: -1.81% | YoY: -8.85%

Gross Profit

Increasing

2.77B

40.90% margin

QoQ: 4.92% | YoY: 13.24%

Operating Income

Increasing

1.96B

QoQ: 14.29% | YoY: 41.14%

Net Income

Increasing

1.42B

QoQ: 8.88% | YoY: 23.54%

EPS

Increasing

0.92

QoQ: 9.52% | YoY: 24.32%

Revenue Trend

Margin Analysis

Financial Highlights

Financial Overview:
- Revenue: RMB 6.76 billion, down 3% YoY
- Gross Profit: RMB 2.77 billion, up 13.24% YoY
- Net Income: RMB 1.42 billion, up 23.54% YoY

Key Ratios:
- Gross Margin: 40.9% (up 7.8% YoY)
- Net Profit Margin: 21.0%
- EBITDA Margin: 28.6%
- EPS: RMB 0.92, an increase of 24.32% YoY

The slight revenue decline was primarily due to a 15% drop in social entertainment revenues, offset by an impressive performance in online music services which surged by 43% YoY. Management cited the effective monetization strategies and a high-quality user base as significant contributors to profitability improvements.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	6.77B	-8.85%	-1.81%
Gross Profit	2.77B	13.24%	4.92%
Operating Income	1.96B	41.14%	14.29%
Net Income	1.42B	23.54%	8.88%
EPS	0.92	24.32%	9.52%

Key Financial Ratios

Gross Profit Margin

Good

40.90%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Excellent

28.90%

Operating margin is exceptional, indicating strong pricing power and operational efficiency

Net Profit Margin

Excellent

21.00%

Net profit margin is exceptional, indicating strong pricing power and operational efficiency

Return on Assets

Weak

1.80%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

2.40%

Return on equity suggests inefficient capital allocation

Current Ratio

Strong

2.67

Current ratio indicates excellent liquidity and financial flexibility

Debt to Equity

Conservative

0.10

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Value

10.89x

P/E ratio suggests potential undervaluation or stable earnings

Price to Book

Fair Value

1.04x

Price-to-book ratio reasonable for profitable companies

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q3 2024	7,015.00	1.01	+6.8%	View
Q2 2024	7,160.00	1.07	-1.7%	View
Q1 2024	6,768.00	0.92	-8.9%	View
Q4 2023	6,893.00	0.82	-1.6%	View
Q3 2023	6,569.00	0.74	-10.8%	View

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Tencent Music (TME) Q1 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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