Tencent Music Q2 Profit Climbs, Revenues Down; Stock Dips In Pre-market

(RTTNews) - Tencent Music Entertainment Group (TME) reported Tuesday higher profit in its second quarter, while revenues declined.

In pre-market activity on the NYSE, Tencent Music shares were losing around 5.7 percent to trade at $12.38.

For the quarter, the online music and audio entertainment platform in China reported net profit attributable to equity holders of the Company of RMB1.68 billion or $231 million, 29.6 percent higher than last year's RMB1.30 billion.

Earnings per American Depositary Shares or ADS for the second quarter were RMB1.07 or $0.15, up from RMB0.82 in the same period of 2023.

Non-IFRS net profit attributable was RMB1.87 billion or $258 million, representing 22.5 percent year-over-year growth. Non-IFRS earnings per ADS were RMB1.19 or $0.16.

Total revenues decreased 1.7 percent to RMB7.16 billion or $985 million from prior year's RMB7.29 billion, primarily due to a decline in revenues from social entertainment services and others, which was partially offset by strong year-over-year growth in revenues from online music services.

Revenues from music subscriptions were RMB3.74 billion or $515 million, representing 29.4 percent year-over-year growth.

The number of paying users increased 17.7 percent year-over-year to 117.0 million.

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