Tencent Music Entertainment Reports Q1 2020 Stability



In 2020, China had the world’s fourth largest music streaming market, growing 90.7% to $ 718 million, according to IFPI.

Just as Western music services are dabbling in podcasts, TME is dabbling in long-form audio – primarily audiobooks – in what Cussion Pang, president of Tencent Music, said in a statement is an “evolution towards an all-in-one online music and audio entertainment destination in China. TME is yet to turn this plan into more money: Average revenue per subscriber fell 1.1% to 9.3 yuan ($ 1.44) from Q1 2020. Long-playing audio, however, makes music apps stickier by increasing engagement: In Q1 2021, the percentage of monthly active users who listened to music. Long-playing audio improved to 20.0%, compared to 5.5% in Q1 2020 and 15% in Q4 2020.

Also on Monday, Tencent Music announced that it has renewed a license agreement with Sony Music Entertainment. Shares of Tencent Music rose 0.6% to $ 15.30 on the Nasdaq on Monday, giving it a market cap of $ 25.9 billion.

Financial metrics (year-to-year changes and sequential monthly):

  • Total income rose 24.0% to 7.82 billion yuan ($ 1.19 billion); it was down 6.1% compared to Q4 2020.
  • Music subscription revenue rose 40.2% to 1.69 billion yuan ($ 258 million); it increased by 7.0% against 1.58 billion in the fourth quarter of 2020.
  • Operating result rose 11.2% to 1.16 billion yuan ($ 180.8 million).
  • Net profit to shareholders rose 10.3% to 926 million yuan ($ 143.8 million).

Music listening metrics (year-to-year changes and sequential monthly):

  • Music the subscribers increased 42.6% to 60.9 million year-over-year; they improved 8.8% of 56.0 million in the fourth quarter of 2020.
  • Music monthly active users (MAU) fell 6.4% to 615 million year-over-year; it was down 1.1% from 622 million in the fourth quarter of 2020. (A year ago, Tencent Music executives thought this changes in behavior during the pandemic this uneven The first quarter of 2020 would persist. This does not appear to have happened because the music MAUs were weaker than one year ago.)
  • Monthly musical ARPU (average revenue per user) fell 1.1% to 9.3 yuan ($ 1.44) year-on-year; it was 1.1% lower than in the fourth quarter of 2020.

Social listening metrics (year-to-year changes and sequential monthly)

  • Social MAU fell 14.2% to 224 million; they were the same as Q4 2020.
  • Social subscribers fell 12.5% ​​to 11.3 million; they or they increased 4.6% from 10.8 million in the fourth quarter of 2020.
  • ARPU of social users increased from 35.7% to 149.7 yuan ($ 23.25) from the 1st quarter of 2020 when ARPU fell 12.9% from the first quarter of 2019 of to the COVID-19 epidemic. Q1 2021 ARPU fell 13% from 172.1 yuan ($ 26.73) in the fourth quarter of 2020.



Comments are closed.