Tencent Music Entertainment Group (TME) reported Tuesday higher profit and revenues in its third quarter, driven mainly by growth in music subscriptions.
Meanwhile, Tencent Music shares were losing around 5.02 percent in pre-market activity on the NYSE, to trade at $10.97.
For the quarter, the online music and audio entertainment platform in China reported net profit attributable to equity holders of the Company of RMB1.58 billion or $226 million, a growth of 35.5 percent from last year's RMB1.17 billion.
Earnings per American Depositary Shares or ADS were RMB1.01 or $0.14, up from RMB0.74 in the same period of 2023.
Adjusted net profit attributable to equity holders of the Company was RMB1.81 billion or $258 million,representing 28.8 percent year-over-year growth. Adjusted earnings per ADS were RMB1.16 or $0.16.
Analysts on average expected the company to report earnings of $0.17 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
Total revenues increased 6.8 percent to RMB7.02 billion or $1.0 billion from prior year's RMB6.57 billion. The Street was looking for revenues of $980.86 million for the quarter.
The revenues were driven primarily by strong year-over-year growth in revenues from online music services, partially offset by a decline in revenues from social entertainment services and others.
Revenues from music subscriptions were RMB3.84 billion or $547 million, 20.3 percent year-over-year growth. The number of paying users increased 15.5 percent from last year to 119.0 million.
ARPPU grew 4.9 percent year-over-year to RMB10.8.
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