Tencent Music reports Q2 EPS 11c, consensus 14c

Reports Q2 revenue $1.01B, consensus $1.01B. Reports Q2 online music MAUs 594M. “We are pleased to report a solid second quarter, supported by the continued strong growth of our online music services. As we continue driving the healthy development of China’s online music industry, we have seen users become increasingly accustomed and willing to pay for copyrighted music, whether for songs they want to listen to or for premium listening features they enjoy. This trend is evidenced by the all-time high paying ratio and ARPPU recorded by our online music services in the reported quarter. Such achievements led to revenues from online music services exceeding that of social entertainment services for the first time in our Company’s history. This marks a significant step along TME‘s growth trajectory,” said Cussion Pang, executive chairman of TME. “Starting from the latter part of the second quarter of 2023, we have proactively implemented several service enhancement and risk control measures to ensure a more music-centric live streaming atmosphere. Although these measures are expected to put pressure on revenues from social entertainment services throughout the second half of 2023, and thus adversely impact our total revenues for this year, we believe such measures can provide users with an optimized user experience while paving the way for our healthier and more resilient business development in the long run.”