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

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Tencent Music Entertainment has released its financial results for the third quarter of 2022 (the three months to the end of September).

The Chinese music streaming giant, which operates music services QQ Music, Kugou and Kuwo, generated total revenue of 7.37 billion RMB (1.04 billion USD) in the third quarter, representing a 5.6% year-on-year decrease.

TME’s net profit, however, increased year-on-year by 38.7%reaching 1.09 billion RMB (US$154 million) in the third trimester.

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Q3 2022 online music services revenue increased by 18.8% at 3.43 billion RMB (US$482 million) of 2.89 billion RMB in the third quarter of 2021.

TME says the increase was driven by strong growth in music subscription revenue, complemented by growth in revenue from digital album sales and advertising services, partially offset by lower sub-licensing revenue.



Revenue from music subscriptions reached 2.25 billion RMB (US$316 million), representing a growth of 18.3%ccompared to 1.90 billion RMB in the same quarter last year, mainly due to an increase in the number of paying users of 19.8%.

The company’s paid music users have reached 85.3 million in the third quarter, after adding a total of 2.6 million paid music users in the third quarter compared to the end of the second quarter of 2022.

Total number of TME online music mobile monthly active users reached 587 million in Q3, down 7.7% from one year to the next, against 636 million in the third quarter of 2021.

The company says the year-over-year decline in online music mobile MAUs was “primarily due to churn from our casual users amid competition from pan-entertainment platforms, as well as cost optimization measures to focus on improving the efficiency of monetization as a scale platform”.

“Notably, paying online music users, a cohort representing high-quality users, continued to grow at a healthy pace and took the payment ratio to a new record high,” TME added in its Tuesday 15 filing. november.

In the third quarter of 2022, TME completed its secondary SEO on the main board of the Hong Kong Stock Exchange under stock code 1698, nearly four years after the company began trading on the New York Stock Exchange (December 12, 2018).

TME said on Tuesday it had repurchased more than $800 million of its own shares, “as a sign of confidence in the company’s bright future”, “in line with the billion-dollar share buyback program announced the last year at the end of the third quarter.

“Effective cost optimization measures and improved operational efficiency led to increased profitability in difficult macroeconomic conditions this quarter.”

Cussion Pang, TME

Cussion Pang, Executive Chairman of TME, said, “Effective cost optimization measures and improved operational efficiency led to increased profitability in challenging macroeconomic conditions this quarter.

“Leveraging our dual-engine content and platform strategy, we’ve introduced more resources and services optimized to provide music content creators and musicians with the tools they need and music lovers with the sounds and the features they want.

Pang added, “Furthermore, the completion of our listing on the main board of the Hong Kong Stock Exchange, in addition to our main listing on the NYSE, demonstrates our commitment to protecting long-term shareholder value.

“We are truly grateful to our users, employees, partners and investors who have been with us every step of the way and helped us reach this important milestone.”

“Today, we cater to more diverse music tastes and nuanced user demands than ever before. Enhanced experiences, coupled with more privileges, translate into compelling new monetization opportunities that we can actively leverage.

Ross Liang, TME

Ross Liang, CEO of TME, added, “Powered by our spirit of innovation, we introduced numerous immersive and connective product upgrades in Q3. Users now have even more unique ways to interact with our content and with each other as they listen, watch, sing and play.

“Today, we cater to more diverse music tastes and nuanced user demands than ever before. Enhanced experiences, coupled with more privileges, translate into compelling new monetization opportunities that we can actively leverage.

“As we cultivate these strengths, we continue to bring more social awareness and value to our music-based charitable programs while supporting music and its evolution.”The music industry around the world

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