腾讯音乐（TME）：（.N）24Q3业绩点评：订阅用户稳健增长，SVIP推动ARPPU增长

Investment Rating - The report maintains a "Buy" rating for Tencent Music (TME.N) [2][7] Core Insights - The company reported Q3 2024 revenue of 7.02 billion RMB, a year-over-year increase of 6.8%, slightly above Bloomberg consensus of 7.00 billion RMB. Gross profit reached 2.99 billion RMB, up 27.7% year-over-year, with a gross margin of 42.6%, benefiting from strong growth in music subscription revenue and rapid growth in advertising revenue [1] - Adjusted net profit for Q3 2024 was 1.94 billion RMB, reflecting a year-over-year increase of 29.1%, also above Bloomberg consensus of 1.92 billion RMB [1] - The online music business showed steady growth, with online music revenue of 5.48 billion RMB, a year-over-year increase of 20.4%, accounting for 78.1% of total revenue, up 8.8 percentage points year-over-year [1] - The number of paid subscribers reached 119 million, with a year-over-year growth in the payment rate of 3.3 percentage points to 20.7% [1] - The company is expected to continue benefiting from its SVIP subscription model, which has surpassed 10 million subscribers, enhancing user experience through diversified privileges [1] Summary by Sections Financial Performance - Q3 2024 operating profit was 2.14 billion RMB, a year-over-year increase of 50.5%. Operating costs decreased by 4.8% year-over-year to 4.02 billion RMB, with content costs growing at a slower pace than music revenue [1] - Q3 expenses decreased by 3.9% year-over-year to 1.22 billion RMB, with management expenses down 4.9% to 999.8 million RMB due to reduced personnel costs [1] User Growth and Engagement - The report highlights effective operational strategies that have driven user growth, with SVIP subscription features including long audio, sound quality enhancements, and early access to digital albums [1] - The social entertainment business revenue was 1.535 billion RMB, down 23.9% year-over-year, but the decline was mitigated by improvements in live streaming and advertising performance [1] Profitability Forecast - The report maintains adjusted net profit forecasts for 2024-2026 at 7.4 billion, 8.4 billion, and 9.4 billion RMB respectively, indicating a solid growth trajectory [1]