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Tencent Music Entertainment Group (TME)
NYSE:TME
RESEARCH TOOLSreports
Earnings Data
Report Date
May 19, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.17Last Year’s EPS
0.13Same Quarter Last Year
Strong Buy
Based on 9 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 18, 2025
|% Change Since: 7.20%
|Next Earnings Date:May 19, 2025
Earnings Call Sentiment|Positive
The earnings call demonstrated a strong financial performance with notable growth in revenues, profits, and subscriber base. The company's focus on innovation, AI integration, and strategic partnerships has driven positive results. Despite challenges in social entertainment and balancing subscriber growth with ARPPU, the overall outlook remains optimistic with a significant dividend and share repurchase program to reward shareholders.Company Guidance
During Tencent Music Entertainment Group's Fourth Quarter and Full Year 2024 Earnings Conference Call, management provided guidance reflecting optimism for continued growth in 2025. They highlighted a return to top-line growth, with a notable 8% year-over-year increase in total revenues, reaching RMB7.5 billion in Q4 2024. Online music revenues saw a 16% rise, driven by a robust 18% growth in music subscription revenues, achieving a monthly ARPU of RMB11.1. The company reported a significant net profit increase of 47% year-over-year to RMB2.1 billion. For 2025, Tencent Music anticipates further growth in subscriber numbers and ARPPU, bolstered by their dual-engine strategy of rich content and platform innovation. They also announced a new share repurchase program of up to $1 billion and an annual dividend of $273 million, signaling a commitment to shareholder returns amid their strategic focus on expanding SVIP memberships and enhancing their advertising business.Strong Revenue and Profit Growth
Total revenues in Q4 2024 were RMB7.5 billion, up by 8% year-over-year. Online music revenues increased by 16% year-over-year, driven by strong growth in music subscription and advertising revenues. Net profit increased by 47% year-over-year to RMB2.1 billion.
Expanding Subscriber Base and ARPPU
The number of online music paying users reached 121 million, a 13% increase year-over-year, with a quarterly net addition of 2 million users. Monthly ARPU increased to RMB11.1 from RMB10.7 in the same period of the previous year.
Significant Progress in SVIP Membership
SVIP membership program showed strong sequential growth in membership and ARPPU. SVIP offerings, including enhanced audio quality and exclusive content, have gained significant recognition from users.
Focus on Innovation and AI Integration
TME has integrated advanced AI capabilities, such as DeepSeek, to enhance user experience and music creation, driving user engagement and retention.
Successful Partnerships and Content Expansion
Renewed strategic contracts with international labels and expanded partnerships with renowned Chinese artists, increasing the music library to over 260 million tracks by the end of 2024.
Improved Gross Margin
Gross margin in Q4 reached 43.6%, an increase of 5.3 percentage points year-over-year, driven by subscription revenue growth and optimized content costs.
Announced Dividend and Share Repurchase Program
Announced an annual dividend of $273 million and a new and expanded share repurchase program of up to $1 billion.
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TME Earnings History
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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TME Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Mar 18, 2025 | $13.06 | $15.09 | +15.54% |
| Nov 12, 2024 | $11.55 | $10.92 | -5.45% |
| Aug 13, 2024 | $13.13 | $11.12 | -15.31% |
| May 13, 2024 | $13.23 | $14.68 | +10.96% |
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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FAQ
When does Tencent Music Entertainment Group (TME) report earnings?
Tencent Music Entertainment Group (TME) is schdueled to report earning on May 19, 2025, TBA Not Confirmed.
What is Tencent Music Entertainment Group (TME) earnings time?
Tencent Music Entertainment Group (TME) earnings time is at May 19, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TME EPS forecast?
TME EPS forecast for the fiscal quarter 2025 (Q1) is 0.17.
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