TME-Tencent Music Entertainment Group Announces Fourth Quarter and Full-Year 2023 Unaudited Financial Results

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]