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 2.4 billion RMB, reflecting 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 subscription and advertising revenue [2] 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] - The company announced a cash dividend of 273 million USD and a new buyback plan of 1 billion USD [1] Revenue Breakdown - Membership subscription revenue reached 4.03 billion RMB, growing 18.0% year-over-year, with a total of 121 million paying users [2] - Social entertainment revenue was 1.63 billion RMB, down 13.0% year-over-year, but showed signs of stabilization [2] Profitability and Cost Management - Operating profit for Q4 2024 was 2.41 billion RMB, a 40.5% increase year-over-year [3] - Operating expenses decreased by 7.3% year-over-year to 1.17 billion RMB, primarily due to reduced personnel costs [3] Future Outlook - The company expects revenue growth to improve in 2025, with adjusted net profit forecasts raised to 8.98 billion RMB for 2025 and 10.44 billion RMB for 2026 [3] - The report highlights the solid competitive barriers and potential for profit release due to scale effects [3]
腾讯音乐：24Q4业绩点评：收入业绩略超预期，音乐订阅业务高质量增长-20250320