Tencent Music revenue jumps 18%, beats estimates, as paid subscribers flock to expanded library

18Views

August 11, 2020

China’s Tencent Music Entertainment Group (TME) said on Monday its quarterly revenue leaped 18%, beating Wall Street estimates, as it put more music for streaming behind its paywall and grew its paid subscriber base by more than half.

The strong performance comes amid a growing rift between Beijing and Washington that has overshadowed Chinese firms in the United States. Shares rose 2.4% in extended trade after it said second-quarter revenue grew to 6.93 billion yuan ($997 million).

Asked whether TME had a plan to deal with a recommendation from President Donald Trump’s administration over auditing U.S.-listed Chinese firms, Chief Strategy Officer Tony Yip told analysts in a briefing that it was “premature” to speculate over a potential delisting.

Controlled by Chinese tech giant Tencent Holdings Ltd, TME’s capitalisation on the New York market is about $26 billion.

For the quarter ended June 30, TME said paid users of its online music service rose 52% to 47.1 million, the fastest quarter on record according to TME. Net income attributable to shareholders rose 1.3% to 939 million yuan ($135 million) from 927 million yuan a year earlier.

The company has signed multiple partnerships with international and domestic music labels to expand its premium user base. On Monday, it also extended its multi-year licensing agreement with music company Universal Music Group (UMG), home to Taylor Swift and The Beatles, while also announcing a new joint venture music label.

In comparison, investor and peer Spotify Technology SA reported 138 million paid users in the quarter.

Unlike Spotify, TME generates only a part of its revenue from music subscription packages and relies heavily on services popular in China such as online karaoke and live streaming.

Also Watch

Sushant Death Probe: Rhea Chakraborty Files New Affidavit In Supreme Court | CNN News18

($1 = 6.9502 Chinese yuan)

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f320849db1d45129a352075
[youtube_id] => 0IqzBfLIFfY
Tencent Music revenue jumps 18%, beats estimates, as paid subscribers flock to expanded library => Sushant Death Probe: Rhea Chakraborty Files New Affidavit In Supreme Court | CNN News18
)

[1] => Array
(
[id] => 5f3183dddb1d45129a351db1
[youtube_id] => BtUQUgelI1A
Tencent Music revenue jumps 18%, beats estimates, as paid subscribers flock to expanded library => Sachin Pilot Irons Out Issues With Party After Meeting Top Leadership | CNN News18
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c278c2f2492e214884,5d96f74de3f5f312274ca307&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-08T08:34:04.000Z&publish_max=2020-08-11T08:34:04.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Tencent Music revenue jumps 18%, beats estimates, as paid subscribers flock to expanded library

Also Watch

Speak Your Mind

LEAVE A REPLY Cancel reply

Get in Touch

Recommend for You

Oh hi there It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

You might also like

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

About Us

Follow Us

Support Us & Be a Patreon

Add QNewsHub to your Homescreen!

Oh hi there
It’s nice to meet you.