Tencent Music misses quarterly revenue estimates as social entertainment unit drags (updated)

Tencent Music Entertainment

12/11/2024 09:21

(Adds share movement and details in paragraphs 2-7)
       Nov 12 (Reuters) - Tencent Music Entertainment  1698.HK 
missed estimates for quarterly revenue on Tuesday, as Beijing's
crackdown on online gambling continues to impact its social
entertainment segment.
    U.S.-listed shares  TME.N  of the company fell 5.6% in
premarket trading.
    The China-based company had removed certain live-streaming
features in August last year to comply with anti-gambling
regulations.
    Revenue from the company's social entertainment services
business, which includes karaoke app WeSing and live concert
platform Kuwo Music, fell 23.9% in the third quarter.
    But the impact was largely countered by a 20.4% rise in
revenue at its online music unit, after paying users increased
15.5% to 119 million.
    Tencent Music's premium Super VIP (SVIP) membership, which
combines long-form audio content, online karaoke services and
high-quality sound, has gained significant traction among users.
    The company's revenue rose 6.8% over the year earlier to
7.02 billion yuan ($970.23 million) in the third quarter, but
narrowly missed analysts' average estimate of 7.04 billion yuan,
according to data compiled by LSEG.
 


($1 = 7.2354 Chinese yuan renminbi)

 (Reporting by Harshita Mary Varghese in Bengaluru and Yelin Mo
in Beijing; Editing by Shilpi Majumdar)
 ((HarshitaMary.Varghese@thomsonreuters.com;))