Chinese music streaming company Tencent Music Entertainment remained strong in the third quarter, losing just 0.8% of its subscription revenue while gaining 4.6 million subscribers, an increase of 9.8% from the previous quarter. previous quarter, according to its third quarter earnings release.
The main results of the company from one year to the next:
- Total revenue increased 16.4% to 7.58 billion yuan ($ 1.12 billion)
- Music subscription revenue increased 55% to 1.46 billion yuan ($ 215 million)
- Operating profit rose 6.1% to 1.26 billion yuan ($ 186 million)
- Shareholders’ net profit rose 10.3% to 1.135 billion yuan ($ 167 million)
Tencent Music’s music apps performed relatively well, with paid users increasing 7%, 10.3% and 9.8% in the first, second and third quarters. Revenue did not keep pace as third quarter paid users were only 0.3% from the final 2019 tally.
- The number of music subscribers increased from 4.6 million to 51.7 million, up 46% year-on-year and 9.8% from the second quarter. In unit terms, subscriber growth improved to 2.8 million in the first quarter and 4.4 million in the second quarter.
- Monthly active music users (MAUs) fell 2.3% to 646 million, from 661 million in the previous year period
- Monthly music ARPU (average revenue per user) increased 5.6% to 9.4 yuan ($ 1.42)
Signs of the COVID-19 pandemic can be seen on Tencent Music’s metrics. In the first quarter, when much of China was under lockdown orders, Tencent Music’s monthly users of its social apps soared 15.3% to 256 million, and paying customers rose 3.2. %. The growth of social apps has slowed since then, with paid users on social media dropping 16% in the third quarter.
- Social MAUs fell 6.4% to 235 million
- Social subscribers fell 14.6% to 10.5 million
- ARPU of social users increased 32% to 166.7 million yuan ($ 25.20 million)
TME recently renewed its multi-year license agreement with Merlin, the digital rights agency for the independent music community, and entered into a separate digital license agreement to promote and distribute the peermusic publishing catalog in China.