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Dec 31, 2024
Tencent Music Q4 2024 Earnings Report
Tencent Music reported its Q4 2024 earnings with strong growth in online music services and improved profitability despite declines in social entertainment revenue.
Key Takeaways
Tencent Music delivered solid financial performance in Q4 2024 with $1.02 billion in total revenue, an 8.2% year-over-year increase. The company benefited from robust growth in music subscription revenues and advertising, with net income reaching $284 million and non-IFRS net profit at $329 million. The online music paying user base grew significantly, and ARPPU improved as well.
Total revenue increased 8.2% year-over-year to $1.02 billion.
Online music services revenue grew 16.1% year-over-year.
Net profit attributable to equity holders reached $268 million, up 49.8%.
Cash and short-term investments totaled $5.15 billion at quarter-end.
Tencent Music
Tencent Music
Tencent Music Revenue by Segment
Revenue by Segment
Online Music Services Revenue
CapyFin.comSocial Entertainment Revenue
CapyFin.com Forward Guidance
Tencent Music aims to continue expanding its music subscription services and leverage AI-powered innovation to enhance user experience and engagement in 2025.
Positive Outlook
- Continuous expansion of paying users in online music services.
- Strong growth in ARPPU supported by SVIP program.
- Increased revenues from diversified advertising formats.
- Expanding partnerships with global entertainment brands.
- Integration of AI features to boost user engagement and content creation.
Challenges Ahead
- Decline in social entertainment service revenues.
- Stringent compliance and adjustments in live-streaming functions.
- Potential challenges in further monetizing social entertainment platforms.
- Dependence on macroeconomic stability in China.
- Continued pressure on operational efficiency amidst platform transitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income