Tencent Music Entertainment Group Reports Fourth Quarter And Full-year Financial Results
$TME
Tencent Music Entertainment Group (NYSE: TME), a major player in China’s online music and audio streaming industry, has released its unaudited financial results for the fourth quarter and full year ending December 31, 2024. The company reported continued growth in both revenue and profit, largely driven by a steady rise in paid subscriptions and new product features.
In the fourth quarter, Tencent Music generated RMB 7.46 billion (approximately US$1.02 billion) in revenue, which marked an 8.2% increase compared to the same period the previous year. A key factor behind this growth was a strong performance in its music subscription segment, which grew 18% year-over-year to RMB 4.03 billion (US$552 million).
The number of paying users for its online music services reached 121 million, up 13.4% from the previous year. The company also saw a slight increase in average revenue per paying user, rising from RMB 10.7 to RMB 11.1.Net profit for the quarter rose by 47.3%, reaching RMB 2.08 billion (US$284 million). Profit attributed to shareholders was RMB 1.96 billion (US$268 million), showing an increase of 49.8% from the same quarter in 2023.
Looking at the full year, Tencent Music reported RMB 28.40 billion (US$3.89 billion) in total revenue, a 2.3% increase compared to 2023. Growth in music subscription revenue stood out, with a 25.9% increase to RMB 15.23 billion (US$2.09 billion). The company’s full-year net profit was RMB 7.11 billion (US$974 million), which represented a 36.2% increase from the previous year. Profit attributable to shareholders for the year was RMB 6.64 billion (US$910 million).
Beyond its financial results, Tencent Music has been expanding its service offerings. Its premium “Super VIP” membership, which includes access to long-form audio, online karaoke, and high-quality audio features, has gained popularity among users. This is part of a broader strategy to deepen user engagement and diversify its content, which now includes over 260 million licensed and co-created tracks.
As it looks to 2025, Tencent Music plans to continue integrating AI technologies and expanding its content and services. The company is focused on personalizing its offerings and maintaining its position in China’s fast-evolving music and audio entertainment market. With consistent financial performance and ongoing innovation, Tencent Music appears positioned for continued growth.
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