TME-Tencent Music Entertainment Group Announces Fourth Quarter and Full-Year 2024 Unaudited Financial Results

Core Viewpoint - Tencent Music Entertainment Group (TME) reported strong financial results for Q4 and full year 2024, highlighting significant growth in online music services and a commitment to shareholder value through dividends and share repurchase programs [1][3]. Financial Highlights - Total revenues for Q4 2024 increased by RMB 565 million, or 8.2%, to RMB 7.46 billion (US $1.02 billion) compared to RMB 6.89 billion in Q4 2023 [5][6]. - Revenues from online music services rose by 16.1% year-over-year to RMB 5.83 billion (US$ 799 million) from RMB 5.02 billion in the same period of 2023 [5][6]. - For the full year 2024, total revenues reached RMB 28.40 billion (US $3.89 billion), a 2.3% increase from RMB 27.75 billion in 2023 [15][19]. - Net profit for Q4 2024 was RMB 2.08 billion (US$ 284 million), representing a 47.3% year-over-year growth [6][12]. - The company declared an annual cash dividend of approximately US $273 million for 2024 and authorized a new share repurchase program of up to US$ 1 billion [3][21]. Operational Highlights - Monthly Active Users (MAUs) for online music decreased by 3.5% year-over-year to 556 million, while paying users for online music increased by 13.4% to 121 million [4][8]. - Monthly Average Revenue Per Paying User (ARPPU) for online music rose to RMB 11.1 from RMB 10.7 in Q4 2023 [4][8]. - Revenues from music subscriptions grew by 18.0% year-over-year to RMB 4.03 billion (US $552 million) [6][8]. Cost and Profitability - Gross margin improved to 43.6% in Q4 2024 from 38.3% in the same period of 2023, driven by growth in music subscription revenues and advertising services [9]. - Total operating expenses decreased by 7.3% year-over-year to RMB 1.17 billion (US$ 161 million) [9][17]. - Total operating profit for Q4 2024 was RMB 2.41 billion (US$330 million), a 40.5% increase year-over-year [10][18]. Strategic Initiatives - The company emphasized innovation in user experience and content offerings, launching new features to enhance user engagement [3][5]. - TME's SVIP initiative showed strong performance, contributing to user engagement and ARPPU growth [3][7]. - The company is focusing on AI integration to personalize services and enhance user experiences in 2025 [3][7]. Content and Partnerships - TME has over 260 million licensed and co-created music and audio tracks, with renewed contracts with major entertainment companies [7]. - Collaborations with renowned artists and production of original soundtracks for popular media have expanded TME's content ecosystem [7]. ESG Commitment - The company has made strides in supporting female musicians and launched initiatives to raise biodiversity awareness through music [25].