Tencent Music Hits High Note With Strong Q4 Results, Boosts Shareholder Returns

variety.com:

Naman Ramachandran Tencent Music Entertainment Group (TME), China‘s dominant music streaming platform, announced robust fourth-quarter 2024 financial results on Tuesday, marked by substantial growth in its music subscription business and expanded profit margins.

The company, which operates popular apps including QQ Music, Kugou Music, and WeSing, reported total revenues of RMB7.46 billion ($1.02 billion) for Q4, representing an 8.2% year-over-year increase.

This growth was primarily driven by the company’s online music services, which surged 16.1% to $799 million. Music subscription revenues were particularly strong, reaching $552 million – an 18% jump compared to the same period in 2023.

The company’s paying user base expanded to 121 million subscribers, up 13.4% year-over-year and adding two million new subscribers from the previous quarter alone. “2024 was a year of solid progress for TME, marked by strong performance in our online music business driving overall revenue growth and expanding profit margins,” said Cussion Pang, executive chair of TME. “Our pioneering initiatives across the music value chain have reshaped the industry landscape and enriched our ecosystem, boosting subscriber penetration rate and lifetime value.” The company’s quarterly net profit reached $284 million, representing a remarkable 47.3% increase from the previous year.