Tencent Music Entertainment Group (NYSE:TME) shares climbed more than 2% in premarket trading Tuesday after the company reported better-than-expected results for the second quarter.
TME posted Q2 earnings per share (EPS) of RMB 1.55, exceeding analyst expectations of RMB 1.42.
Revenue rose roughly 18% to RMB 8.44 billion, also ahead of the RMB 7.97 billion consensus.
Online music services generated RMB 6.85 billion (US$957 million), up 26.4% year-over-year, while music subscription revenue climbed 17.1% to RMB 4.38 billion (US$611 million).
Monthly average revenue per paying user (ARPPU) increased to RMB 11.7 from RMB 10.7 a year earlier.
"Our focus on product innovation to deliver immersive user experiences has driven solid growth in our online music business. This is reflected in the continued expansion of both our subscriber base and ARPPU, along with deeper user engagement," said Mr. Ross Liang, CEO of TME.
"We are especially pleased to see our SVIP subscribers recently surpass 15 million, a new milestone reflecting the deep trust and loyalty of our users."
Gross margin improved to 44.4% from 42% in the same quarter last year, supported by strong growth in music subscription and advertising revenues, as well as a lower revenue-sharing ratio in social entertainment services.
Source :
https://www.investing.com/news/earnings/tencent-music-enteratainment-shares-gain-on-betterthanexpected-q2-results-4184323
