Financial Performance - Total revenue for Q1 2023 reached RMB 7.0 billion (USD 1.02 billion), representing a year-on-year growth of 5.4%[3]. - Net profit attributable to equity holders was RMB 1.15 billion (USD 167 million), an increase of 88.5% year-on-year[3]. - Operating profit increased by 84.4% year-over-year to RMB 1.38 billion (USD 201 million) in Q1 2023, attributed to effective cost control and improved operational efficiency[10]. - Non-IFRS net profit for Q1 2023 was RMB 1,463 million, up 55.8% from RMB 939 million in Q1 2022[24]. - Basic earnings per share for A and B ordinary shares increased to RMB 0.37 in Q1 2023, compared to RMB 0.19 in Q1 2022[23]. Revenue Breakdown - Online music subscription revenue grew by 30.4% year-on-year to RMB 2.6 billion (USD 378 million), with paid user count reaching 94.4 million, a 17.7% increase year-on-year[3][6]. - Online music service revenue increased by 33.8% year-on-year to RMB 3.5 billion (USD 510 million), marking a significant growth in commercialization capabilities[5][6]. - Advertising revenue saw significant growth due to innovative ad formats and improved macroeconomic conditions, attracting sponsors from various industries[7]. - In Q1 2023, revenue from social entertainment services and other services decreased by 13.0% year-over-year to RMB 3.5 billion (USD 510 million)[8]. - Tencent Music reported online music service revenue of RMB 3,501 million for Q1 2023, a 33.7% increase from RMB 2,616 million in Q1 2022[22]. User Metrics - The online music paid user conversion rate reached a new high of 15.9%[6]. - Monthly active users for online music services decreased by 6.9% year-over-year to 592 million, while social entertainment services saw a 16.0% decline to 136 million[12]. - Paid users for online music services increased by 17.7% year-over-year to 9.44 million, while paid users for social entertainment services decreased by 14.5% to 7.1 million[12]. Cost Management - Operating expenses decreased by 8.4% year-over-year to RMB 1.23 billion (USD 179 million), with the percentage of operating expenses to total revenue dropping from 20.2% to 17.5%[10]. - Gross margin improved by 5.1 percentage points year-over-year to 33.1% in Q1 2023, primarily due to strong growth in music subscription and advertising service revenues[10]. Cash and Assets - Cash, cash equivalents, and time deposits totaled RMB 28.5 billion (USD 4.15 billion) as of March 31, 2023[3]. - The company maintained a cash and cash equivalents balance of RMB 28.5 billion (USD 4.15 billion) as of March 31, 2023, up from RMB 27.4 billion at the end of 2022[11]. - As of March 31, 2023, total assets increased to RMB 69,113 million from RMB 67,009 million as of December 31, 2022, representing a growth of approximately 3.13%[26]. - The company's total equity rose to RMB 52,063 million as of March 31, 2023, up from RMB 49,127 million, reflecting an increase of about 3.95%[27]. Strategic Initiatives - The company continues to explore innovative interactive and monetization models, including the expansion of its live performance brand TME live[4]. - Tencent Music's "New Force Plan" has successfully assisted 260 emerging musicians in achieving over 1 million song plays for the first time in Q1[14]. - The company hosted 29 online and offline concerts under the TME live brand, attracting nearly 70 million unique visitors within the Tencent ecosystem[14]. - The company deepened collaboration with Tencent's ecosystem, producing songs for 11 well-known game IPs and 4 animation IPs in Q1[14]. - The company initiated a special project "If Music Had a Shape" to raise awareness for autism, featuring over 50 domestic and international artists[17]. Content and User Engagement - The audio live streaming business has become a key growth engine, enhancing user experience and attracting more vibrant audio hosts[4]. - Audio live streaming revenue grew year-over-year, driven by differentiated content and interactive features, with the number of active broadcasters continuing to increase[8]. - The exclusive sound effects for the "Utopia Boys" album reached 2.3 million users, with a total of 170 million plays[15]. - Personalized recommendation playback times for QQ Music and Kugou Music saw a month-on-month increase, achieving record high proportions[16]. - The company launched the "TME Studio Music Creation Assistant" to enhance content production efficiency, providing users with immersive experiences[16].
腾讯音乐-SW(01698) - 2023 Q1 - 季度业绩