2023-05-15 16:00Financial Performance - Total revenues for Q1 2023 were RMB7.00 billion (US$1.02 billion), representing a 5.4% year-over-year increase[4]. - Revenues from online music services increased by 33.8% year-over-year to RMB3.50 billion (US$510 million), with music subscriptions growing by 30.4% to RMB2.60 billion (US$378 million)[5][6]. - Net profit attributable to equity holders was RMB1.15 billion (US$167 million), representing an 88.5% year-over-year growth[6][15]. - Operating profit grew to RMB1.38 billion (US$201 million), reflecting an increase of 84.4% year-over-year[14]. - Non-IFRS net profit for the period was RMB 1,463 million (approximately USD 213 million), up 55.8% from RMB 939 million in Q1 2022[41]. - Profit for the period rose to RMB 1,200 million (approximately USD 175 million), representing an increase of 84.5% compared to RMB 649 million in Q1 2022[39]. User Engagement and Growth - The number of online music paying users rose by 17.7% year-over-year to 94.4 million, achieving a record-high paying ratio of 15.9%[5][6]. - The number of users utilizing the customized sound effect for the TNT album reached 2.3 million across 170 million streams[31]. - QQ Music and Kugou Music's recommendation streaming volume and time spent per user both increased year-over-year and quarter-over-quarter, achieving a new high in recommended streaming proportion[31]. - The company hosted 29 online and offline concerts in Q1, attracting nearly 70 million unique visitors within the Tencent ecosystem[23]. Revenue Streams - Advertising revenues saw notable growth due to increased interest from advertisers and a recovering macro environment[8]. - Revenues from audio live streaming increased year-over-year, supported by differentiated content and interactive features[10]. - Online music services revenue increased by 33.7% year-over-year to RMB 3,501 million (approximately USD 510 million) in Q1 2023[38]. Financial Position - As of March 31, 2023, total cash, cash equivalents, and term deposits amounted to RMB28.5 billion (US$4.15 billion), up from RMB27.4 billion at the end of 2022[19]. - Cash and cash equivalents increased to RMB 12,129 million (approximately USD 1,766 million) as of March 31, 2023, compared to RMB 9,555 million at the end of 2022[44]. - Total assets grew to RMB 69,113 million (approximately USD 10,064 million) as of March 31, 2023, up from RMB 67,009 million at the end of 2022[44]. - The equity attributable to equity holders of the Company increased to RMB 50,980 million (approximately USD 7,423 million) as of March 31, 2023, compared to RMB 48,099 million at the end of 2022[44]. - Total liabilities increased to RMB 17,882 million, up RMB 2,483 million from the previous period[45]. Cash Flow - Net cash provided by operating activities decreased to RMB 1,852 million, down RMB 642 million year-over-year[46]. - Net cash used in financing activities improved to RMB (80) million, a reduction of RMB 315 million from the previous year[46]. - Net cash provided by investing activities turned positive at RMB 811 million, an increase of RMB 1,140 million year-over-year[46]. - Deferred revenue decreased to RMB 2,170 million, down RMB 164 million from the previous period[45]. - Current liabilities totaled RMB 11,717 million, an increase of RMB 1,599 million compared to the previous period[45]. - Non-current liabilities rose to RMB 6,165 million, an increase of RMB 95 million from the previous period[45]. - Accounts payable decreased to RMB 4,998 million, down RMB 322 million from the previous period[45].