Tencent Music
TME
$18.58 -0.75%
Exchange: NYSE | Sector: Communication Services | Industry: Internet Content Information
Q3 2023
Published: Aug 15, 2023

Earnings Highlights

  • Revenue of $6.57B down 10.8% year-over-year
  • EPS of $0.74 increased by 10.5% from previous year
  • Gross margin of 35.7%
  • Net income of 1.17B
  • ""Our impressive content offerings... enabled us to attract new subscribers while retaining existing ones." - Kar Shun Pang, Executive Chairman." - Kar Shun Pang
TME
Tencent Music Entertainment Group

Executive Summary

Tencent Music Entertainment Group (TME) delivered strong performance in Q3 2023, with total revenues of CNY 6.57 billion, down 11% year-over-year due to a significant decline in social entertainment services. However, the online music segment performed remarkably well, with revenues increasing by 33% to CNY 4.6 billion, fueled by a growing subscriber base and improved average revenue per paying user (ARPPU). The company's strategic pivot towards enhancing its core music subscription service has positioned it favorably for future growth, as indicated by management's positive outlook for subscriber acquisition and engagement. The overall gross profit margin improved to 35.7% from 32.6% a year prior, reflecting more favorable revenue mix and operational efficiencies. Management emphasized the resilience and robustness of TME's music service amid challenging market conditions, enhancing the company's long-term growth trajectory.

Key Performance Indicators

Revenue
Decreasing
6.57B
QoQ: -9.84% | YoY: -10.81%
Gross Profit
Decreasing
2.34B
35.65% margin
QoQ: -6.21% | YoY: -2.54%
Operating Income
Increasing
1.43B
QoQ: -7.41% | YoY: 13.01%
Net Income
Increasing
1.17B
QoQ: -10.02% | YoY: 10.08%
EPS
Increasing
0.74
QoQ: -55.42% | YoY: 10.45%

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