SHENZHEN, China, May 13, 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, today announced its unaudited financial results for the first quarter ended March 31, 2024 and declared its annual cash dividend for the year ended December 31, 2023. First Quarter 2024 Financial Highlights Total revenues were RMB6.77 billion (US$937 million), representing a 3.4% year-over-year decrease, mai ...

SHENZHEN, China, April 18, 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, today announced that it has filed its annual report on Form 20-F that includes its audited financial statements for the fiscal year ended December 31, 2023 with the Securities and Exchange Commission (the "SEC") on April 18, 2024, U. S. Eastern Time. The annual report can be accessed on TME's investor relat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF ...

The China-based company is on its way to repurchasing billions worth of sharesOptions traders are targeting Tencent Music Entertainment Group (NYSE:TME) today, as the stock jumps to its highest level since July 2021. The China-based company yesterday repurchased 3.27 million shares for $1 billion, after last month announcing its intention to buy back a minimum of $12.8 billion this year. The stock also got a boost last week after boosting its advertising business with artificial intelligence (AI). So far to ...

Investment Rating - The investment rating for Tencent Music (TME.N) has been upgraded to "Buy" [2][5][15] Core Insights - The online music business is experiencing robust growth, with an expected year-on-year increase of 25% in 2024. The company is also expected to continue improving its operational capabilities, leading to higher gross and profit margins [2][15] - As of December 2023, the company has a strong cash position, with cash and cash equivalents totaling 32.2 billion yuan [2][15] - The adjusted net profit forecast for 2024-2026 is set at 7 billion, 7.9 billion, and 8.8 billion yuan respectively, reflecting an upward adjustment of 3% to 5% [2][15] Summary by Sections Financial Performance - In Q4 2023, Tencent Music reported total revenue of 6.89 billion yuan, a year-on-year decrease of 7.2% but a quarter-on-quarter increase of 4.9%. Online music revenue accounted for 73% of total revenue [1][6] - The gross margin for Q4 2023 was 38.3%, up 5.4 percentage points year-on-year and 2.7 percentage points quarter-on-quarter. This increase is attributed to higher ARPPU in online music and growth in high-margin advertising business [1][6] - The adjusted net profit for Q4 2023 was 1.68 billion yuan, representing a year-on-year increase of 12.5% [1][6] Online Music Business - Online music revenue reached 5.02 billion yuan in Q4 2023, marking a year-on-year increase of 41%. Subscription revenue alone was 3.4 billion yuan, up 46% year-on-year [1][9] - The monthly ARPPU for online music was 10.7 yuan, reflecting a year-on-year increase of 20.2% [1][10] - The subscription payment rate reached 18.5%, an increase of 2.9 percentage points year-on-year, with the number of paid users growing by 20.6% [1][9] Social Entertainment Business - Social entertainment and other revenue totaled 1.87 billion yuan in Q4 2023, down 52% year-on-year. The monthly ARPPU for social entertainment was 78 yuan, a decrease of 54% year-on-year [1][12] - The company anticipates a narrowing of revenue decline in the social entertainment segment in 2024, expecting quarterly revenue to stabilize around 1.7 billion yuan [1][12]

Executive Changes - Mr Zhenyu Xie has resigned from his executive positions as President, Chief Technology Officer, and board member, effective March 31, 2024, for personal reasons [1] - Mr Xie will continue to serve as a consultant to the company [1] - Ms Min Hu (Shirley Hu), the Chief Financial Officer, has been appointed as a director of the company, effective March 31, 2024 [1] Leadership Background - Ms Min Hu has over 20 years of experience in finance, including financial management, capital operations, mergers and acquisitions, and internal control [2] - Prior to joining Tencent Music Entertainment, Ms Hu held various controller roles in Tencent's business groups from 2007 to 2016 and served as the director of internal audit at Huawei Technologies [2] - Ms Hu holds professional certifications including CIMA, CPA Australia, CICPA, and CIA, and holds degrees in Industrial Foreign Trade and Systems Engineering [2] Company Overview - Tencent Music Entertainment Group is the leading online music and audio entertainment platform in China, operating popular apps such as QQ Music, Kugou Music, Kuwo Music, and WeSing [3] - The company's platform includes online music, audio, karaoke, live streaming, and online concert services, enabling users to discover, listen, sing, watch, perform, and socialize around music [3]

Investment Rating - The investment rating for Tencent Music (TME US) is "Buy" with a target price of $13.00, indicating a potential upside of 17.8% from the current price of $11.04 [1][7]. Core Insights - Tencent Music's Q4 2023 performance exceeded expectations, with total revenue of 6.89 billion RMB, a year-on-year decline of 7%, primarily due to adjustments in the social entertainment segment, which saw a 52% decrease [1][2]. - The adjusted net profit for Q4 2023 was 1.7 billion RMB, representing a 12% increase year-on-year, which was higher than both the report's and market's expectations [1][2]. - The online music segment showed strong growth, with revenue of 5.02 billion RMB, a year-on-year increase of 41%, driven by a 45% increase in music subscription revenue [2][5]. Summary by Sections Financial Performance - Q4 2023 total revenue was 6.89 billion RMB, down 7% year-on-year, but better than the market expectation of a 10% decline [5]. - Online music revenue reached 5.02 billion RMB, up 41% year-on-year, accounting for 73% of total revenue [2][5]. - The adjusted net profit for Q4 2023 was 1.7 billion RMB, with an adjusted net profit margin of 24% [1][5]. Membership and Revenue Growth - The number of music subscribers reached 107 million, with a net increase of 3.7 million in Q4 2023, resulting in a payment rate of 18.5% [2][5]. - Monthly ARPPU (Average Revenue Per Paying User) increased to 10.7 RMB, reflecting a 20% year-on-year growth [2][5]. - The report forecasts a 37% increase in music subscription revenue for Q1 2024 and a 25% increase for the full year [2][6]. Cost and Profitability - Gross margin improved to 38% in Q4 2023, benefiting from increased subscription and advertising revenues [1][5]. - The report anticipates a further increase in gross margin to 40% in 2024 due to better cost optimization in online music [2][6]. - The adjusted net profit for 2024 is projected to be 6.62 billion RMB, with a corresponding adjusted net profit margin of 23% [8]. Valuation and Market Outlook - The target price for Tencent Music has been raised to $13.00 based on a comparable music and copyright company average P/E ratio of 20x for 2024 [2][8]. - The company continues to see growth potential in music membership over the next two years, supported by scale effects and increased self-produced content [2][6].

Tencent Music Entertainment (NYSE:TME) Q4 2023 Results Conference Call March 19, 2024 7:00 AM ET Company Participants Millicent Tu - Head of Investor Relations Kar Shun Pang - Executive Chairman Ross Liang - Chief Executive Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alex Poon - Morgan Stanley Alicia Yap - Citigroup Lincoln Kong - Goldman Sachs Fang Wei - Mizuho Zhang Lei - Bank of America Merrill Lynch Xueqing Zhang - CICC Thomas Chong - Jefferies Millicent Tu Good evening, go ...

Exhibit 99.1 Tencent Music Entertainment Group Announces Fourth Quarter and Full-Year 2023 Unaudited Financial Results SHENZHEN, China, March 19, 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, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Financial Highlights Full Year 2023 Financial Highlights 1 • ...

Core Insights - Tencent Music Entertainment Group (TME) reported a 20.6% year-over-year increase in music paying users, reaching 106.7 million, with a monthly ARPPU growth of 20.2% [1][4] - The company experienced a total revenue decline of 7.2% year-over-year in Q4 2023, primarily due to decreased revenues from social entertainment services [2][5] - Music subscription revenues grew by 45.3% year-over-year, contributing significantly to the overall revenue despite the decline in other segments [2][3] Financial Highlights - Total revenues for Q4 2023 were RMB 6.89 billion (US$ 971 million), down from RMB 7.43 billion in Q4 2022 [2][5] - Net profit for Q4 2023 was RMB 1.41 billion (US$ 198 million), reflecting a 16.9% year-over-year increase [2][5] - For the full year 2023, total revenues were RMB 27.75 billion (US$ 3.91 billion), a decrease of 2.1% compared to 2022 [3][5] Operational Highlights - Monthly active users (MAUs) for online music decreased by 4.2% year-over-year to 576 million, while mobile MAUs for social entertainment dropped by 28.8% [4][5] - The company expanded its content offerings, partnering with over 200 record labels and publishing over 3 million songs from indie musicians [4][5] - TME enhanced user experience through technology innovations, including a larger Dolby Atmos music library and personalized app features [4][5] Strategic Initiatives - TME's focus on AI-driven tools, such as the upgraded virtual DJ feature and the Venus AI composition tool, aims to improve music discovery and artist creation [5][6] - The company hosted various offline music events to promote cultural and economic development, particularly in ethnic minority regions [7] Shareholder Returns - Under its US$ 500 million share repurchase program, TME repurchased 25.3 million ADSs for a total consideration of US$ 174.5 million as of December 31, 2023 [6]