FX.co ★ Tencent Music Entertainment Q4 Profit Rises, Revenues Down

Tencent Music Entertainment Group recently announced a 13.5% increase in their fourth-quarter net profit, attributable to the company's equity holders. This profit rose from last year's RMB1.15 billion to RMB1.31 billion, or $184 million.

The earnings per American Depositary Shares, or ADS, also saw an uptick from RMB0.72 to RMB0.83 or $0.12 compared to the corresponding period in 2022. After adjustments, the net profit attributable to equity holders amounted to RMB1.58 billion or $222 million. This marked an increase from the previous year's RMB1.44 billion. With this, the adjusted earnings per ADS also rose to RMB1.00 or $0.14, as compared to last year's RMB0.91.

Despite the positive financial performance, the online music and audio entertainment platform reported a 7.2% decrease in total revenues, from RMB7.43 billion to RMB6.89 billion or $971 million. This decline was largely attributed to a decrease in revenue from their social entertainment services, although there was noted growth in revenue from online music services.

Their music subscription revenues showcased significant growth, amassing RMB3.42 billion or $481 million, reflecting a 45.3% year-over-year growth.

In pre-market activity of the New York Stock Exchange, Tencent Music saw an approximate 2% increase in share price, trading around $10.58.