Tencent Music Beats Advertising Revenue Estimates, Increases Paid Subscribers

Aug 16 – Chinese music entertainment group Tencent (TME.N) topped quarterly revenue expectations on Monday as its advertising activity rebounded and more people signed up to its streaming platform musical.

Tencent Music, China’s response to Spotify (SPOT.N), has tried to attract more paying users in recent months by focusing on long-playing audio and expanding its library through licensing agreements with Universal Music Group and Sony Music.

Total revenue of the company controlled by Tencent Holdings Ltd (0700.HK) increased 15.5% to 8.01 billion yuan ($ 1.24 billion) in the second quarter. Analysts had expected a figure of 8.13 billion yuan, according to data from Refinitiv IBES.

The results come against a backdrop of intensifying regulatory repression against Chinese internet giants.

Tencent Music reiterated in a statement that it had accepted a decision by the regulator in July on exclusive music licensing deals, which is expected to have some impact on its operations.

Profit attributable to shareholders of the company fell to 827 million yuan, from 939 million yuan a year earlier.

($ 1 = 6.4742 Chinese yuan renminbi)

Reporting by Eva Mathews in Bengaluru; Editing by Aditya Soni

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