Investment Rating - The report maintains a "Buy" rating for Tencent Music (TME.N) [5] Core Insights - The company reported Q4 2024 revenue of 7.46 billion RMB, exceeding Bloomberg consensus expectations of 7.29 billion RMB, with a year-over-year growth of 8.2% [1] - The adjusted net profit for Q4 2024 reached 2.40 billion RMB, representing a year-over-year increase of 43.0% [1] - The music subscription business showed high-quality growth, with online music revenue of 5.83 billion RMB, up 16.1% year-over-year, driven by strong growth in subscription and advertising revenues [2] - The company announced a cash dividend of 273 million USD and a new share buyback plan amounting to 1 billion USD [1] Summary by Sections Financial Performance - Q4 2024 gross profit was 3.25 billion RMB, with a gross margin of 43.6%, up 5.3 percentage points year-over-year [3] - Operating profit for Q4 2024 reached 2.41 billion RMB, a year-over-year increase of 40.5% [3] - The company expects revenue growth to improve in 2025, with a slight increase in operating expenses anticipated [3] Revenue Breakdown - Membership subscription revenue was 4.03 billion RMB, up 18.0% year-over-year, with a total of 121 million paying users [2] - Other music revenue reached 1.80 billion RMB, growing 12.5% year-over-year, supported by healthy advertising revenue [2] - Social entertainment revenue was 1.63 billion RMB, down 13.0% year-over-year, but showing signs of stabilization [2] Profitability Forecast - The adjusted net profit forecast for 2025 is set at 8.98 billion RMB, reflecting a growth rate of 17.0% [4] - The report projects a gradual increase in adjusted net profit for 2026 and 2027, with estimates of 10.44 billion RMB and 11.72 billion RMB respectively [4] Market Position - The company has solid competitive barriers, with expectations that SVIP development will enhance ARPPU and contribute to advertising revenue growth [3] - The report highlights the potential for continued profit release due to scale effects [3]
腾讯音乐（TME）：24Q4业绩点评：收入业绩略超预期，音乐订阅业务高质量增长