Investment Rating - The investment rating for Tencent Music (TME) is currently not specified in the report, but the overall recommendation is to actively monitor the company due to its strong performance and growth potential [2]. Core Views - The report highlights that Tencent Music's Q3 2024 performance met expectations, with total revenue of 70.2 billion yuan, a year-over-year increase of 6.8%. Net profit reached 17.1 billion yuan, up 35.3% year-over-year, while adjusted net profit was 19.4 billion yuan, reflecting a 29.1% increase year-over-year [2]. - The online music service revenue was 54.8 billion yuan, showing a year-over-year growth of 20.4%, driven by strong growth in subscription revenue and advertising services. The subscription revenue alone was 38.4 billion yuan, up 20.3% year-over-year [2]. - The report emphasizes the importance of SVIP membership in enhancing ARPPU (Average Revenue Per Paying User), with SVIP members exceeding 10 million by the end of September 2024, contributing to a higher ARPPU compared to regular members [2]. Summary by Sections Financial Performance - Total revenue for Q3 2024 was 70.2 billion yuan, slightly above the consensus estimate of 70 billion yuan, with a year-over-year growth of 6.8% [2]. - Net profit was reported at 17.1 billion yuan, close to the consensus estimate of 17.2 billion yuan, with a year-over-year increase of 35.3% [2]. - Adjusted net profit reached 19.4 billion yuan, exceeding the consensus estimate of 19.2 billion yuan, marking a year-over-year growth of 29.1% [2]. Revenue Breakdown - Online music service revenue was 54.8 billion yuan, up 20.4% year-over-year, primarily due to strong subscription growth and advertising revenue [2]. - Subscription revenue specifically was 38.4 billion yuan, reflecting a year-over-year increase of 20.3% [2]. - Social entertainment services and other services revenue was 15.4 billion yuan, down 23.9% year-over-year, attributed to adjustments in live interaction features and stricter compliance measures [2]. User Metrics - As of Q3 2024, the number of paying users for online music services reached 119 million, a year-over-year increase of 15.5% [2]. - The report notes a net increase of 2 million paying users in Q3, aligning with the guidance of 1.5 to 2 million [2]. - The ARPPU for online music services was 10.8 yuan, up 4.9% year-over-year, while for social entertainment services, it was 64.8 yuan, down 24.8% year-over-year [2].
腾讯音乐：24Q3业绩点评：24Q3业绩符合预期，关注SVIP带来的ARPPU提升