SHENZHEN, China, Jan. 3, 2024 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, and Universal Music Group ("UMG"), the world's leading music-based entertainment company, today announced the renewal of a multi-year strategic licensing agreement, fortifying their shared commitment to creating value for artists and exceptional experiences for music lovers. Under the agreement, TME continues ...

Tencent Music Entertainment Group (NYSE:TME) Q3 2023 Earnings Conference Call November 14, 2023 6:00 AM ET Company Participants Millicent Tu - Investor Relations Kar Shun Pang - Executive Chairman Ross Liang - Chief Executive Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alicia Yap - Citigroup Alex Poon - Morgan Stanley Zhang Lei - Bank of America Merrill Lynch Lincoln Kong - Goldman Sachs Thomas Chong - Jefferies Alex Yao - JPMorgan Xueqing Zhang - CICC Wei Xiong - UBS Millicent ...

Company Information - Tencent Music Entertainment Group filed its report for April 2024 under Form 20-F[1] - The company is headquartered in Shenzhen, China, with a principal office address at Unit 3, Building D, Kexing Science Park[2] Report Details - The report was signed by Min Hu, Chief Financial Officer, on April 18, 2024[5]

Tencent Music Entertainment Group (NYSE:TME) Q2 2023 Results Conference Call August 15, 2023 8:00 AM ET Company Participants Tony Yip - Chief Strategy Officer Kar Shun Pang - Executive Chairman Ross Liang - Chief Executive Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alex Yao - JPMorgan Lei Zhang - Bank of America Merrill Lynch Alex Poon - Morgan Stanley Lincoln Kong - Goldman Sachs Alicia Yap - Citicorp Thomas Chong - Jefferies Xueqing Zhang - CICC Tony Yip Good evening and goo ...

Financial Performance - Total revenues for Q2 2023 were RMB7.29 billion (US$1.01 billion), representing a 5.5% year-over-year growth[1]. - Net profit attributable to equity holders was RMB1.30 billion (US$179 million), reflecting a 51.6% year-over-year growth[2]. - TME's operating profit for Q2 2023 was RMB 1,539 million, up from RMB 1,045 million in Q2 2022, representing a 47% year-over-year increase[43]. - The company reported a non-IFRS net profit of RMB 1,348 million for Q2 2023, compared to RMB 892 million in Q2 2022, marking a 51% increase[43]. - Basic earnings per share for Class A and Class B ordinary shares increased to 0.42 in Q2 2023 from 0.27 in Q2 2022, representing a 56% rise[43]. - Non-IFRS net profit for Q2 2023 reached RMB 3,042 million, a 52% increase from RMB 2,004 million in Q2 2022[47]. - The company reported a profit for the period of RMB 2,548 million for the six months ended June 30, 2023, compared to RMB 1,541 million for the same period in 2022[47]. Revenue Breakdown - Revenues from online music services increased by 47.6% year-over-year to RMB4.25 billion (US$586 million), accounting for 58.3% of total revenues[1][7]. - Revenues from social entertainment services decreased by 24.6% to RMB3.04 billion (US$419 million) due to service enhancement measures[8]. - TME's social entertainment services generated revenues of RMB 3,037 million in Q2 2023, a decline from RMB 4,027 million in Q2 2022, reflecting a 25% decrease[43]. User Engagement - The number of paying users for online music reached 99.4 million, a 20.2% increase year-over-year, with a monthly ARPPU of RMB9.7, marking a 14.1% increase[1][14]. - The company launched a premium package for couples in June 2023, enhancing user experience and engagement[16]. - QQ Music's in-car version 2.0 was launched in June 2023, enhancing user experience and expanding partnerships with car manufacturers[30]. - The company introduced new features across its platforms, including enhanced sound quality in QQ Music and a more intuitive interface in Kugou Music, aimed at increasing user engagement[29]. Cash and Assets - Total cash, cash equivalents, and term deposits as of June 30, 2023, were RMB30.5 billion (US$4.21 billion), up from RMB28.5 billion as of March 31, 2023[13]. - Cash and cash equivalents at the end of Q2 2023 were RMB 12,950 million, compared to RMB 10,044 million at the end of Q2 2022[55]. - Total assets as of June 30, 2023, amounted to RMB 72,466 million, up from RMB 67,009 million at the end of 2022[53]. - Total equity increased to RMB 54,712 million as of June 30, 2023, from RMB 49,127 million at the end of 2022[52]. - The company’s investments accounted for using the equity method rose to RMB 4,483 million as of June 30, 2023, from RMB 4,330 million at the end of 2022[50]. - The company’s term deposits increased to RMB 7,570 million as of June 30, 2023, from RMB 6,530 million at the end of 2022[50]. Future Outlook - The company expects total revenues to decline by a low-to-mid teens percent year-over-year for Q3 2023 and a low-to-mid single-digit percent decrease for the full year 2023[20]. Social Responsibility - The company hosted two charity concerts in Q2 2023, showcasing its commitment to social responsibility and music-based welfare activities[32]. Market Engagement - Tencent Music Entertainment hosted the TMEA 2023 with nearly 40,000 attendees, generating over 10 billion social media views[23]. - The total value of music transactions on the Venus platform exceeded RMB 10 million as of Q2 2023, reflecting significant engagement from indie musicians[25]. Profitability Metrics - Gross margin improved by 4.4 percentage points to 34.3% from 29.9% in the same period of 2022[10]. - TME's gross profit for the first half of 2023 was RMB 4,812 million, compared to RMB 3,923 million in the same period of 2022, indicating a 23% growth[43]. - Net cash provided by operating activities for Q2 2023 was RMB 2,067 million, compared to RMB 1,241 million in Q2 2022[55]. - The company reported a decrease in share-based compensation expenses to RMB 368 million for the six months ended June 30, 2023, down from RMB 430 million for the same period in 2022[47].

Tencent Music Entertainment Group (NYSE:TME) Q1 2023 Results Earnings Conference Call May 16, 2023 7:00 AM ET Company Participants Tony Yip - Chief Strategy Officer Cussion Pang - Executive Chairman Ross Liang - Chief Executive Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alex Poon - Morgan Stanley Alicia Yap - Citigroup Lei Zhang - Bank of America Securities Wei Xiong - UBS Xueqing Zhang - CICC Yiwen Zhang - China Renaissance Wei Fang - Mizuho Securities Tony Yip Good evening a ...

Exhibit 99.1 Tencent Music Entertainment Group Announces First Quarter 2023 Unaudited Financial Results SHENZHEN, China, May 16, 2023 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced its unaudited financial results for the first quarter ended March 31, 2023. Financial Highlights In the three months ended March 31, 2023: "We started 2023 with great momentum as our strateg ...

SEC Filing and Report Details - Tencent Music Entertainment Group filed a Form 6-K report with the SEC for the month of April 2023 [1] - The report includes a press release as Exhibit 99.1 [2] - The report was signed by Min Hu on behalf of Tencent Music Entertainment Group on April 25, 2023 [4]

Financial Performance - Revenues for the year ended December 31, 2022, were RMB 28,339 million, a decrease from RMB 31,244 million in 2021, representing a decline of approximately 9.1%[34] - Gross profit for the year ended December 31, 2022, was RMB 8,773 million, down from RMB 9,404 million in 2021, indicating a decrease of about 6.7%[34] - Operating profit for the year ended December 31, 2022, was RMB 4,443 million, compared to RMB 3,800 million in 2021, reflecting an increase of approximately 16.9%[34] - Profit for the year ended December 31, 2022, was RMB 3,839 million, a slight increase from RMB 3,215 million in 2021, showing an increase of about 19.4%[34] - Total assets as of December 31, 2022, were RMB 67,009 million, compared to RMB 67,254 million as of December 31, 2021, indicating a marginal decrease of approximately 0.4%[38] - Total liabilities as of December 31, 2022, were RMB 17,882 million, an increase from RMB 16,199 million in 2021, representing an increase of about 10.4%[38] - Cash and cash equivalents at the end of the year 2022 were RMB 9,555 million, up from RMB 6,591 million at the end of 2021, indicating an increase of approximately 45%[38] - Net cash inflow from operating activities for the year ended December 31, 2022, was RMB 7,481 million, a significant increase compared to the previous year[43] - Net cash outflow from investing activities for the same period was RMB 1,446 million, reflecting a decrease in investment activities[43] - Net cash outflow from financing activities was RMB 3,419 million, indicating a reduction in financing activities compared to the previous year[43] VIE Structure and Contributions - In 2022, revenues generated by the VIEs accounted for 96.8% of Tencent Music Entertainment Group's total net revenues[23] - As of December 31, 2022, total assets of the VIEs represented 26.5% of the Group's consolidated total assets[23] - Cumulative capital contributions made by Tencent Music Entertainment Group to its PRC subsidiaries amounted to RMB1,161 million (US$168 million) as of December 31, 2022[26] - The VIEs transferred RMB16,415 million (US$2,380 million) to Tencent Music Entertainment Group's PRC subsidiaries as service fees in 2022[26] - The loan balance owed by the VIEs to the WOFEs was RMB129 million (US$19 million) as of December 31, 2022[26] - The total amount of undistributed profits from the PRC subsidiaries and VIEs was RMB17,660 million (US$2,560 million) as of December 31, 2022[27] - Tencent Music Entertainment Group has not declared or paid any cash dividends and has no plans to do so in the near future[27] - Revenues from VIEs constituted substantially all of the company's revenues in 2020, 2021, and 2022, highlighting the importance of these arrangements[215] Regulatory Environment - The Group faces significant legal and operational risks due to PRC regulatory authority over foreign investments and business operations[24] - Recent regulatory developments include the establishment of the National Data Bureau to oversee data-related activities, impacting the company's operations[48] - The company is subject to new live streaming regulations in China, which impose stricter requirements on live streaming businesses[55] - The Trial Administrative Measures by the CSRC require PRC domestic companies to fulfill filing procedures for overseas securities offerings, affecting future financing activities[51] - The CAC issued regulations on live streaming on May 7, 2022, requiring real-name registration and prohibiting minors from virtual gifting[56] - The new live streaming regulations may lead to increased scrutiny and potential adverse impacts on the company's business and financial condition[58] - The PRC Anti-Monopoly Law was amended on August 1, 2022, increasing penalties for monopolistic conduct, with fines up to 10% of the previous year's sales revenue[59] - The Holding Foreign Companies Accountable Act (HFCAA) could lead to trading prohibitions on U.S. markets if audit reports are not inspected for two consecutive years[61] - The PCAOB announced it could conduct inspections in mainland China and Hong Kong in 2022, reducing the risk of being identified as a "Commission-Identified Issuer" under the HFCAA[61] Content and Licensing Risks - The company relies on third-party licenses for content, and any adverse changes to these relationships could materially affect its financial condition[73] - Significant portions of the company's music and long-form audio offerings are licensed from content partners, with no assurance of favorable terms in the future[73] - There is a risk of not having complete licenses for certain copyrights, which could lead to potential disputes and liabilities related to copyright infringement[79] - The company has adopted measures to reduce the likelihood of using content without proper licenses, including user agreements and "notice and take-down" policies[83] - Minimum guarantee payments required under certain license agreements may limit the company's operating flexibility and adversely affect its financial condition if user growth does not meet expectations[91] - The company relies on estimates of market share and user growth to forecast whether minimum guarantees can be recouped, which could impact margins if actual performance underperforms expectations[92] - Inability to obtain accurate copyright ownership information may hinder the company's ability to secure necessary licenses, potentially leading to content removal and infringement claims[93] - The company may be subject to significant financial penalties and reputational damage if it fails to comply with complex license agreements[90] Competition and Market Dynamics - The company operates in a competitive industry, facing significant competition from online music services and other forms of content, which may impact market share[114] - The company faces increasing competition and potential intellectual property claims as it seeks to expand its international footprint[86] - The introduction of the pay-for-streaming model in Q1 2019 has driven user engagement, but future success is uncertain due to regulatory scrutiny and user demand fluctuations[97] - The company faces challenges in maintaining high-quality content and user experience to increase paying users, which is critical for revenue growth[98] - The company's advertising revenues are heavily dependent on the growth of the online advertising industry in China and the willingness of advertisers to invest in online platforms[171] - Regulatory changes, such as the MIIT Notice and the Internet Advertising Measures, have negatively impacted the effectiveness of splash ads, leading to a decrease in advertising revenues[172] Legal and Compliance Issues - As of December 31, 2022, there were 923 lawsuits pending against the company related to copyright infringement, with damages sought totaling approximately RMB257.7 million (US$37.4 million)[137] - The company must comply with evolving PRC regulations regarding content distribution, which may lead to penalties or operational constraints if not adhered to[135] - The company has limited control over user-generated content, which poses risks of legal and administrative liability if inappropriate content is displayed[136] - The company cooperates with talent agencies to manage live streaming performers, and any adverse changes in these relationships could impact operational efficiency[120] - The company may incur substantial costs to enforce contractual arrangements with VIEs if they fail to perform their obligations[203] - The effectiveness of the company's internal control over financial reporting was deemed effective as of December 31, 2022, but future audits may reveal material weaknesses[189] Strategic Focus and Future Outlook - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[34] - The company is exploring new monetization opportunities while optimizing existing strategies to maintain revenue growth[97] - The company's strategic focus on long-term user engagement may lead to operational results that do not meet investor expectations, potentially impacting stock price[142] - The company prioritizes long-term partnerships and substantial investments in content production to cater to evolving user demands[142] Cybersecurity and Data Privacy - Privacy concerns and security breaches could lead to economic loss and legal liabilities, affecting user trust and business operations[144] - The company is subject to evolving cybersecurity and data protection laws, which may impose additional operational costs and compliance challenges[146] - The PRC Cyber Security Law and Data Security Law require network operators to implement security measures and appoint data security officers[148][149] - The company may face uncertainties regarding compliance with new regulations affecting national security and data processing activities[154] - Compliance with the GDPR and UK GDPR may result in fines up to EUR 20 million or 4% of worldwide annual turnover, whichever is greater, if personal data breaches occur[157] - The California Consumer Privacy Act (CCPA) provides California residents with expanded privacy rights, and similar laws are being enacted in other states, increasing compliance costs[158] - The company faces significant risks related to evolving privacy and data security regulations, which could lead to civil or regulatory liabilities and impact its financial condition[161] Management and Operational Risks - The loss of key management could disrupt operations and adversely affect future growth[166] - The company may need to alter its business model to comply with new regulations regarding virtual currencies, which could lead to penalties[167] - The company's operations depend on the performance of internet infrastructure in China, which is largely maintained by state-owned operators[68] - Programming errors on the platform could adversely affect user experience and market acceptance, impacting overall business performance[186] - Negative media coverage and social media publicity can harm the company's reputation and operations, potentially affecting financial performance[180] Tencent's Influence - Tencent holds 9.1% of the outstanding Class A ordinary shares and 98.5% of the Class B ordinary shares, representing 92.6% of total voting power[194] - Any negative developments in Tencent's market position or financial condition may adversely affect the user base and marketing efforts of the company[193] - The effectiveness of the company's marketing efforts is closely tied to Tencent's brand recognition and user ecosystem[193] - The company's financial contribution to Tencent was not material, and Tencent's strategic decisions may not align with the company's interests[198]

Tencent Music Entertainment Group (NYSE:TME) Q4 2022 Earnings Conference Call March 21, 2023 7:00 AM ET Company Participants Cussion Pang - Executive Chairman Ross Liang - Chief Executive Officer Tony Yip - Chief Scientific Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alicia Yap - Citigroup Alex Poon - Morgan Stanley Lincoln Kong - Goldman Sachs Lei Zhang - Bank of America Securities Wei Xiong - UBS Xueqing Zhang - CICC Thomas Chong - Jefferies Charlene Liu - HSBC Tony Yip Good ...