Tencent Music Entertainment reaches 85.3 million paid music users, up 19.8% year-on-year

By | November 15, 2022

Tencent Music Leisure has launched its monetary outcomes for the third quarter of 2022 (the three months to the tip of September).

The Chinese language music streaming large, which operates music companies QQ Music, Kugou and Kuwo, generated complete income of seven.37 billion RMB (1.04 billion USD) within the third quarter, representing a 5.6% year-on-year lower.

TME’s web revenue, nevertheless, elevated year-on-year by 38.7%reaching 1.09 billion RMB (US$154 million) within the third trimester.

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Q3 2022 on-line music companies income elevated by 18.8% at 3.43 billion RMB (US$482 million) of 2.89 billion RMB within the third quarter of 2021.

TME says the rise was pushed by sturdy progress in music subscription income, complemented by progress in income from digital album gross sales and promoting companies, partially offset by decrease sub-licensing income.



Income from music subscriptions reached 2.25 billion RMB (US$316 million), representing a progress of 18.3percentcin comparison with 1.90 billion RMB in the identical quarter final yr, primarily resulting from a rise within the variety of paying customers of 19.8%.

The corporate’s paid music customers have reached 85.3 million within the third quarter, after including a complete of two.6 million paid music customers within the third quarter in comparison with the tip of the second quarter of 2022.

Whole variety of TME on-line music cell month-to-month energetic customers reached 587 million in Q3, down 7.7% from one yr to the following, in opposition to 636 million within the third quarter of 2021.

The corporate says the year-over-year decline in on-line music cell MAUs was “primarily resulting from churn from our informal customers amid competitors from pan-entertainment platforms, in addition to value optimization measures to concentrate on bettering the effectivity of monetization as a scale platform”.

“Notably, paying on-line music customers, a cohort representing high-quality customers, continued to develop at a wholesome tempo and took the cost ratio to a brand new report excessive,” TME added in its Tuesday 15 submitting. november.

In Q3 2022, TME accomplished its secondary itemizing on the primary board of the Hong Kong Inventory Trade beneath inventory code 1698, almost 4 years after the corporate started buying and selling on the New York Inventory Trade (December 12, 2018) .

TME stated on Tuesday it had repurchased greater than $800 million of its personal shares, “as an indication of confidence within the firm’s brilliant future”, “in step with the billion-dollar share buyback program introduced the final yr on the finish of the third quarter.

“Efficient value optimization measures and improved operational effectivity led to elevated profitability in tough macroeconomic situations this quarter.”

Cussion Pang, TME

Cussion Pang, Government Chairman of TME, stated, “Efficient value optimization measures and improved operational effectivity led to elevated profitability in difficult macroeconomic situations this quarter.

“Leveraging our dual-engine content material and platform technique, we have launched extra assets and companies optimized to supply music content material creators and musicians with the instruments they want and music lovers with the sounds and the options they need.

Pang added, “Moreover, the completion of our itemizing on the primary board of the Hong Kong Inventory Trade, along with our primary itemizing on the NYSE, demonstrates our dedication to defending long-term shareholder worth.

“We’re actually grateful to our customers, workers, companions and buyers who’ve been with us each step of the way in which and helped us attain this necessary milestone.”

“In the present day, we cater to extra numerous music tastes and nuanced person calls for than ever earlier than. Enhanced experiences, coupled with extra privileges, translate into compelling new monetization alternatives that we are able to actively leverage.

Ross Liang, TME

Ross Liang, CEO of TME, added, “Powered by our spirit of innovation, we launched quite a few immersive and connective product upgrades in Q3. Customers now have much more distinctive methods to work together with our content material and with one another as they hear, watch, sing and play.

“In the present day, we cater to extra numerous music tastes and nuanced person calls for than ever earlier than. Enhanced experiences, coupled with extra privileges, translate into compelling new monetization alternatives that we are able to actively leverage.

“As we domesticate these strengths, we proceed to deliver extra social consciousness and worth to our music-based charitable applications whereas supporting music and its evolution.”The music trade world wide