Tencent Music Entertainment Group (“TME”) (NYSE: TME; HKEX: 1698), the leading online music and audio entertainment platform in China, has reported strong financial results for the fourth quarter and full year ended December 31, 2024. The company posted total revenues of RMB 7.46 billion (US$1.02 billion), an 8.2% year-over-year increase, largely driven by growth in online music services, though partially offset by a decline in social entertainment services.
Music subscription revenues grew 18.0% year-over-year to RMB 4.03 billion (US$552 million). The number of paying users increased by 13.4% to 121 million, with ARPPU (average revenue per paying user) rising to RMB 11.1. Net profit saw a significant jump, growing 47.3% year-over-year to RMB 2.08 billion (US$284 million). Non-IFRS net profit also rose by 43.0%, totaling RMB 2.40 billion (US$329 million).
This marks the company’s second consecutive quarter of growth after a period of slowdown. However, CEO Ross Liang noted that the social entertainment business remains under pressure, with ongoing challenges expected to continue in 2025. Tencent Music’s U.S.-listed shares gained 3% in premarket trading following the announcement.
