Q3 2024 Tencent Music Entertainment Group Earnings Call Transcript
Key Points
- Tencent Music Entertainment Group (TME) reported a 20% year-over-year growth in online music services revenue, contributing to a 29% increase in adjusted net profit.
- The company successfully renewed contracts with top Chinese labels and formed strategic partnerships with international artists, enhancing its music offerings.
- TME's SVIP membership program surpassed 10 million members, driven by enhanced privileges and high-quality audio features.
- The company reported a 35% year-over-year increase in IFRS net profit, reaching RMB1.7 billion.
- TME's gross margin improved to 42.6%, supported by an expanding user base and increased advertising revenues.
- Social entertainment services revenue decreased by 24% year over year, highlighting challenges in this segment.
- The effective tax rate increased to 17.7% from 12.2% in the previous year, due to withholding tax on earnings remitted by PRC subsidiaries.
- Despite the growth in SVIP memberships, the ARPPU (Average Revenue Per Paying User) did not perform as well as expected.
- The company faces ongoing challenges in stabilizing and growing its Monthly Active Users (MAUs), which have remained around 570 million.
- There is uncertainty regarding the future growth rate of gross profit margins, which may not match the growth seen in 2024.
Good evening. Good morning. And welcome to Tencent Music Entertainment Group's third-quarter 2024 earnings conference call. I'm Millicent Tu, Head of IR.
We announced our quarterly financial results earlier today before the US market opened. The earnings release is now available on our IR website and via newswire services. During today's call, you will hear from Mr. Cussion Pang, our Executive Chairman; and Mr. Ross Liang, our CEO, who will share an overview of our company strategies and business updates. Then, Ms. Shirley Hu, our CFO, will discuss our financial results before we open the call for questions.
Before we continue, I refer you to the safe harbor statement in our earnings release, which applies to this call as we'll make forward-looking statements. Please note that we'll discuss non-IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under IFRS in our earnings release and filings with the SEC.
(Events Instructions) Please to be
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
