- Tencent Music Entertainment Group TME reported fourth quarter revenue down 2.4% year-on-year to US$1.08 billion (RMB7.43 billion), beat the consensus of $1.07 billion.
- Revenue from online music services grew 23.6% year over year. Music subscription revenue was RMB2.35 billion (US$341 million), up 20.6% Y/Y.
- Paying users of online music grew 16.1% year-on-year to 88.5 million.
- Revenue from social entertainment services and others fell 18.2% year-on-year to RMB3.87 billion (US$561 million).
- Gross margin increased 420 basis points to 33.0% due to effective content cost control.
- Operating profit rose 103.5% year-on-year to RMB1.39 billion (US$201 million), driven by effective cost controls.
- Adjusted EPADS of $0.13 is in line with consensus.
- Net cash provided from operations was RMB2.49 billion (US$362 million) in the fourth quarter, compared to RMB822 million in 2021.
- As of December 31, 2022, the Company’s combined balance of cash, cash equivalents, time deposits and short-term investments was RMB27.4 billion (US$3.97 billion).
- Cussion Pang, Executive Chairman of TME, said: “Our diversified suite of monetization tools has expanded and made advances over the year including, but not limited to, Ad Assisted Mode, Long Form Audio and Audio Live Streaming, and our international expansion is another significant one Achievement has been the progress we have made with our Music + Public Wellbeing model, which innovatively combines the emotional expression and impact of music to advance social progress… Outlook to 2023 as we reposition ourselves to In areas that better capture future growth, we currently expect our quarterly revenues from online music services to exceed those from social entertainment services sometime within this year.”
- Price promotion: TME shares traded 1.40% lower at $7.75 premarket on the latest check Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights…
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