Tencent Music publishes a turnover of $ 1.18 billion in T2 as the profit increases by 43%
Tencent Music Entertainment Group, the dominant online music and audio platform in China, reported a turnover in the second quarter of $ 1.18 billion, up 17.9% from one year to the next.
The performance was fueled by the growth of online music services, in particular subscriptions and new premium SVIP offers, while social entertainment services continued to decline.
SVIP is the “Super VIP” level of Tencent Music, a more expensive premium subscription offering advantages such as improved audio quality, access to early concert tickets, exclusive digital albums and artists to collect.
Revenues from online music services increased from $ 957 million to $ 957 million, with musical subscription income reaching $ 611 million, an increase of 17.1% from one year to the next. The payable average revenues per paying user climbed to around $ 1.63, compared to $ 1.49 a year earlier. Paid users totaled 124.4 million, an increase of 6.3%, even though monthly active users dropped by 3.2% to 553 million.
The net profit attributable to capital holders of the company was $ 336 million, up 43.2% compared to the same period last year. Based on non-IFR, this figure improved $ 359 million, up 37.4%. IFRS – International Financial Information Standards – is the global whole of accounting rules that companies follow in their official declarations, while non -IFRS figures adapt to certain occasional elements to better reflect basic performance. Operating profit increased from 35.5%to $ 416 million, with gross margin extending to 44.4%, compared to 42.0%. Operating expenses were $ 161 million, which represents a lower income percentage compared to last year. Tencent Music finished the quarter with $ 4.87 billion in cash, equivalents and short -term investments.
Tencent Music has expanded its content ecosystem thanks to new offers with K-Pop The Black Label and HM Music companies, and collaboration with Chinese star Wang Feng. The company has teamed up with SM Entertainment to publish the Chinese EP of NCT Chenle “Lucid”, supported by large promotions. He also created the theme song of “The Lychee Road” and increased content development with Zhejiang satellite television.
Live events have greatly contributed, with the G-Dragon concert tour in Macao, drawing 36,000 fans and selling goods. The company also organized concerts with Fiona Sit, Tia Ray and the Gai rapper, and supported more than 300 offline shows via its City Live and Buff Live platforms.
The innovation of products and members remained central. The new features included Viper Hifi and Audio Enhancement 2.0 in one click on Kugou Music, plus an AI choir tool. SVIP users have taken advantage of the exclusive advantages such as access to early concert tickets, digital albums of artists and collecting stars of artists, notably A-Lin, JJ Lin, Jolin Cai, G-Dragon, Blackpink, JC-T, Silence Wang and Aespa. Tencent Music also launched “Bubble” on QQ Music in partnership with Dearu, allowing fans of K-pop and Chinese music to connect directly with artists.
The executive president CUSSION PANG said: “We achieved high quality growth in the second quarter, achieving a solid increase in income and profitability from one year to the next. Although our music subscription company has remained a basic growth engine, our expansion of music -related services – including advertising, concerts and artist goods – has shown an impressive moment.”
“Our concentration on product innovation to offer immersive user experiences has led solid growth in our online music company,” added CEO Ross Liang. “We are particularly happy to see our SVIP subscribers exceed 15 million, a new step reflecting the deep confidence and the loyalty of our users.”
