Tencent Music
TME
$18.58 -0.75%
Exchange: NYSE | Sector: Communication Services | Industry: Internet Content Information
Q2 2024
Published: Aug 13, 2024

Earnings Highlights

  • Revenue of $7.16B down 1.7% year-over-year
  • EPS of $1.07 decreased by 34.3% from previous year
  • Gross margin of 42.0%
  • Net income of 1.68B
  • ""We are excited to report another solid quarter underpinned by a 28% year-over-year growth in online music services as well as a 26% year-over-year growth increase in adjusted net profit." - Cussion Pang, Executive Chairman" - Cussion Pang
TME
Tencent Music Entertainment Group

Executive Summary

In Q2 2024, Tencent Music Entertainment Group (TME) reported a strong financial performance characterized by a 28% year-over-year growth in revenues from online music services, affirming its position as a leader in the Chinese music streaming market. The total revenue for the quarter reached RMB 7.2 billion, although a slight decline of 2% year-over-year was noted due to weakness in social entertainment revenues. However, net income saw a remarkable increase of 29.6% year-over-year, reaching RMB 1.68 billion, largely driven by higher music subscription revenues and improved average revenue per paying user (ARPPU). Management remains optimistic about the company’s growth trajectory, with over 10 million new music subscribers added in the first half of 2024, indicating robust demand for their services and content.

Key Performance Indicators

Revenue
Decreasing
7.16B
QoQ: 5.79% | YoY: -1.73%
Gross Profit
Increasing
3.01B
42.00% margin
QoQ: 8.63% | YoY: 20.54%
Operating Income
Increasing
2.20B
QoQ: 12.20% | YoY: 42.82%
Net Income
Increasing
1.68B
QoQ: 18.28% | YoY: 29.58%
EPS
Decreasing
1.09
QoQ: 18.48% | YoY: -34.34%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
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