Tencent Music Revenue Surges on Content Expansion and Subscriber Growth
- tech360.tv
- 3 days ago
- 1 min read
Tencent Music Entertainment reported stronger-than-expected second-quarter revenue, driven by an expanded content library and rising demand for its online music services.
The company’s total revenue rose 17.9% to 8.44 billion yuan (USD 1.17 billion), surpassing analysts’ average estimate of 7.96 billion yuan, according to LSEG data.
Shares of the U.S.-listed Chinese streaming firm climbed 6.6% in premarket trading.
Tencent Music has invested heavily in broadening its content offerings, including long-form audio such as podcasts and audiobooks. It also expanded music-related services like advertising, concerts and artist merchandise.
These efforts are tied to the growth of its Super VIP programme, which now serves about 15 million subscribers. The bundled service includes high-quality audio, online karaoke and access to exclusive events.
The company also strengthened partnerships with both domestic and international music labels. It signed first-time deals with The Black Label and H MUSIC to tap into growing K-pop demand in China and extended its collaboration with Chinese artist Wang Feng.
In June, Tencent Music agreed to acquire Chinese audio platform Ximalaya for about USD 2.4 billion in cash and stock. The deal aims to deepen its content catalogue and attract more paying users.
Revenue from music subscriptions rose 17.1% to 4.38 billion yuan, while revenue from social entertainment services fell 8.5% to 1.59 billion yuan.
Adjusted profit reached 1.66 yuan per American Depository Share, beating the estimated 1.46 yuan.
Tencent Music’s Q2 revenue rose 17.9% to 8.44 billion yuan
Music subscription revenue increased 17.1% to 4.38 billion yuan
Super VIP programme reached 15 million subscribers
Source: REUTERS