The earnings call reflects a strong quarter for Tencent Music Entertainment Group, with significant growth in online music services revenue, subscriber base, and SVIP memberships, alongside robust advertising revenue growth. However, there were challenges, including a decline in social entertainment revenue and an increased effective tax rate. Overall, the highlights significantly outweigh the lowlights.

Company Guidance

In the third quarter of 2024, Tencent Music Entertainment Group reported impressive financial performance, with a 35% year-over-year increase in IFRS net profit, reaching RMB 1.7 billion. The company's total revenues grew by 7% year-over-year to RMB 7 billion, driven by a 20% increase in online music services revenue, which amounted to RMB 5.5 billion. The quarter also saw a significant rise in paid subscribers, reaching 119 million—a 16% year-over-year increase—contributing to a 5% increase in ARPU to RMB 10.8. The Super VIP program surpassed 10 million members, further boosting the company's growth prospects. Additionally, the gross margin improved to 42.6%, reflecting effective monetization strategies and cost management, while operating expenses were kept at 17.4% of total revenues. The management expressed optimism for future growth, with plans to enhance user engagement, expand SVIP memberships, and leverage high-quality content offerings.

Strong Financial Performance

Online music services revenue grew by 20% year-over-year, contributing to a 29% year-over-year increase in adjusted net profit. IFRS net profit increased by 35% year-over-year to RMB 1.7 billion.

Subscriber Growth

The number of online music paying users reached 119 million, representing a 16% increase year-over-year with quarterly net adds of 2 million users.

SVIP Membership Milestone

The company surpassed 10 million SVIP members, demonstrating strong growth in their premium membership program.

Advertising Revenue Growth

Advertising revenues experienced strong year-over-year growth, primarily due to the growth in ad-supported music revenues.

ESG Report and Industry Recognition

Published inaugural ESG report and Tencent Musician platform recognized as one of China’s first model cases for the national Copyright Powerhouse strategy.

Innovative Product Features

Introduction of new product features like AI-generated content and enhanced user engagement experiences contributed to user retention and platform differentiation.

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Tencent Music Entertainment (DE:63TA) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:63TA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 19, 2019	2018 (Q4)	- / -0.07	0.006	-1242.86% (-0.08)	―	―
May 13, 2019	2019 (Q1)	- / 0.08	0.011	637.50% (+0.07)	―	―
Aug 12, 2019	2019 (Q2)	- / 0.07	0.012	532.18% (+0.06)	―	―
Nov 11, 2019	2019 (Q3)	- / 0.08	0.088	-6.77% (>-0.01)	―	―
Mar 16, 2020	2019 (Q4)	- / 0.08	-0.074	210.71% (+0.16)	―	―
May 11, 2020	2020 (Q1)	- / 0.07	0.078	-10.17% (>-0.01)	―	―
Aug 10, 2020	2020 (Q2)	- / 0.07	0.073	1.82% (<+0.01)	―	―
Nov 10, 2020	2020 (Q3)	- / 0.09	0.082	8.06% (<+0.01)	―	―
Mar 22, 2021	2020 (Q4)	- / 0.09	0.082	14.52% (+0.01)	―	―
May 17, 2021	2021 (Q1)	0.08 / 0.04	0.07	-49.06% (-0.03)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:63TA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 12, 2024	€10.60	€10.50	-0.94%
Aug 13, 2024	€11.80	€12.00	+1.69%
May 13, 2024	€12.20	€12.60	+3.25%
Mar 19, 2024	€9.38	€9.32	-0.64%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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