Tencent Music Entertainment Revenue Reached $ 1.2 Billion In Third Quarter, Up 3% YoY

0


Tencent Music Entertainment Group has released its financial results for the third quarter of 2021 (three months ended September 30, 2021).

The company generated total revenue of 7.81 billion RMB (about $ 1.21 billion) in the third quarter, an increase of 3% year-on-year.

Meanwhile, TME reports that its third-quarter “mobile MAU – online music” total was 636 million, down 1.5% year-on-year from the 646 million the company had in the last quarter. quarter of the previous year.

According to TME, this year-over-year decline is mainly due “to the churn rate of our occasional users served by other entertainment platforms.”

TME reports that its “paid online music users” grew 5 million (37.7%) year-over-year to 71.2 million in the third quarter.

TME’s monthly ARPPU (average income per paying user) – online music was 8.9 RMB ($ 1.39) in the third quarter, down 5.3% year-on-year from 9 .4 RMB ($ 1.47) in the quarter of the previous year.

The company specifies that the drop in ARPPU “was mainly due to additional promotions this quarter.”

TME’s total revenue from online music services in the third quarter of 2021 increased 24.3% to 2.89 billion RMB ($ 448 million) from 2.32 billion RMB ($ 363 million) ) in the same quarter of last year.

The company pinpoints this increase on “strong growth in music subscription revenues, complemented by growth in advertising revenues”.

Third-quarter music subscription revenue was RMB 1.90 billion ($ 295 million), an increase of 30.2%, from RMB 1.46 billion ($ 228 million) in the last quarter. third quarter 2020.

TME reports that this growth is mainly due to the 37.7% increase in the number of paid users, partially offset by a decrease in ARPPU from 9.4 RMB ($ 1.47) in the third quarter of 2020 to 8 .9 RMB ($ 1.39) in the third quarter of this year.

Elsewhere, TME’s revenue from ‘and other’ social entertainment services in the third quarter of 2021 fell 6.4% to 4.92 billion RMB ($ 763 million) from 5.25 billion RMB (821 million dollars) in the same quarter of 2020.

Year-over-year, TME’s ARPPU and paid users of social entertainment services were down 1.7% and 4.8% in the third quarter of 2021, respectively.

The 6.4% drop in revenues from social entertainment services, according to TME, “is mainly due to the impact of new regulations as well as increased competition from other entertainment platforms, despite strong revenue growth from the live audio streaming “.

The publication of TME’s latest financial results comes at a time regulatory reforms for tech companies in China, and follows news in July that the company and its majority parent company Tencent Holdings were ordered by the Chinese State Administration of Market Regulation to waive any exclusive deals reached. with global labels in China.

Cussion Pang, executive chairman of Tencent Music Entertainment Group (TME) noted in the company brief that “China’s online music industry is adapting to regulatory changes and facing competition for time. spent on short video services ”.

“In the third quarter, our online music services experienced healthy growth, driven by strong subscription momentum as users continue to be drawn to our enhanced music streaming experience. “

Cussion Pang, Tencent Music Entertainment Group

Cussion Pang, Executive Chairman of Tencent Music Entertainment Group (TME), said, “In the third quarter, our online music services experienced healthy growth, driven by strong subscription dynamics as users continue to be drawn to our enhanced music streaming experience.

“As the online music industry in China adapts to regulatory changes and faces competition for time spent on short video services, we will continue to differentiate our online music and social entertainment services and ” execute our dual-engine content and platform strategy.

Pang added, “Along with our efforts to promote the healthy and sustainable development of the music industry in China, we have made significant progress in developing and expanding our capabilities in creation, discovery, promotion and promotion. musical monetization.

“In addition to investing more in the production of high quality music, we have allocated more resources to support and cultivate independent musicians and original music through our Tencent Musician platform, with the aim of establishing our platform. forms as the preferred destination for music enthusiasts. “

“To better serve our users, we are strengthening our platform’s ability to provide music lovers with more video content, share their passion for music within our community and have a more socially engaged experience.

Ross Liang, TME

Ross Liang, CEO of TME, added, “To better serve our users, we are strengthening our platform’s ability to provide music lovers with more video content, share their passion for music within our community and live a more socially engaged experience.

“In this regard, we have launched several initiatives that show encouraging progress, including improved video and social features on QQ Music and Kugou Music.

“In addition, our efforts to expand the offering and functionality of long-lasting audio content have resulted in long-lasting audio MAUs exceeding 140 million, increasing 89% year-over-year as our users discover the complementary experience of music and audio streaming.

“We continue to adopt and collaborate with the wider Tencent ecosystem through multiple cross-platform partnerships with Weixin, Tencent Games and Tencent Video.

“With innovative product features and rich content partnerships, we expect these win-win collaborations to further extend our user reach and content offering, while also meeting the music needs of users on the platform. Tencent. “Music trade around the world


Share.

Comments are closed.