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Tencent Music Revenue Jumps 18% on Strong Subscription Growth: ‘Impressive Momentum’
Chinese music streaming platform Tencent Music Entertainment (TME) has reported a remarkable 18% year-over-year growth in its revenue for the second quarter, fueled by an impressive increase in subscription rates.
The company’s revenue surged to RMB 8.44 billion ($1.18 billion), driven primarily by the significant expansion of its music services division, which posted a staggering 26% annual growth.
Tencent Music, China’s largest music streaming service provider, also announced that its total number of monthly average users (MAU) fell by 3%, dropping to 551 million. However, this decline was more than compensated for by the substantial increase in subscribers, with the number rising 6.3% to a record 124.4 million.
The growth momentum is reflected in the company’s daily active user base and average revenue per paying user (ARPPU), which climbed to RMB 11.7 ($1.63) from RMB 10.7 ($1.49) during the same period last year, primarily due to the success of its premium audio subscription offering, SVIP membership program.
The company’s net profit for shareholders skyrocketed by a significant 43% year-over-year to reach an impressive RMB 2.41 billion ($336 million).
“We delivered exceptional growth in the second quarter, with solid year-over-year increases in both revenue and profitability,” declared Tencent Music’s executive chairman, Cussion Pang. “While our music subscription business remained the primary driver of growth, we are excited about the progress made in expanding our repertoire of music-related offerings – including advertising, live events, merchandise, and more.
Source: www.billboard.com
