A few days ago, Tencent Music-sw (01698.hk) released its unaudited financial performance report for the first quarter of 2024 on the Hong Kong Stock Exchange.
During the reporting period, the company achieved total revenue of 6.77 billion yuan, a year-on-year decrease of 3.4%; net profit was 1.53 billion yuan, a year-on-year increase of 27.5%, and adjusted net profit (non-IFRS) was 1.81 billion yuan, a year-on-year increase of 27.5%. An increase of 23.9%.
Regarding the decline in the company's total revenue, Tencent Music-sw explained in the financial report that it was mainly due to the decline in revenue from social entertainment services and other services, which was partially offset by the growth in revenue from online music services.
It should be noted that Tencent Music-sw has experienced year-on-year revenue decline for three consecutive quarters due to the above reasons. In the third quarter and fourth quarter of 2023, Tencent Music-sw's revenue was 6.57 billion yuan and 6.89 billion yuan respectively, down 10.8% and 7.2% year-on-year. Due to revenue declines in two consecutive quarters in the second half of last year,
's overall revenue in 2023 was only 27.752 billion yuan, a 2.1% decrease from the 28.339 billion yuan revenue in 2022, which is also in line with the revenue scale of 31.244 billion yuan in 2021. There is a gap of about 3.5 billion yuan.
It is reported that Tencent Music-sw’s revenue structure mainly includes online music services, social entertainment services and other services. Among them, the decline in revenue from social entertainment services and other services is related to the company's business adjustments, and there are already traces of this.
From 2020 to 2023, Tencent Entertainment-sw's social entertainment services and other service revenue were 19.804 billion yuan, 19.777 billion yuan, 15.856 billion yuan, and 10.427 billion yuan respectively, with year-on-year growth rates of 8.33% and -0.14% respectively. , -19.83, -34.23%.
In previous financial reports, Tencent Music-sw pointed out that 2023 is a key year for Tencent Music-sw's transformation. The company has adjusted some live broadcast interactive functions and implemented stricter compliance procedures since the second quarter. To improve services and strengthen risk control management.
Titanium Media App found that in terms of quarters in 2023, the revenue from online music services has indeed exceeded the revenue from social entertainment services and other services since the second quarter of last year.
Entering 2024, the revenue of social entertainment services and other services has been further reduced. According to the latest disclosed first quarter report, the revenue of this business is only 1.76 billion yuan, a year-on-year decrease of 49.7%.
However, Tencent Music-sw's profit scale has not been affected by business adjustments and revenue declines, but has achieved continuous growth. From 2023 to the present, the net profit attributable to the company's equity holders is 1.148 billion yuan and 1.298 billion yuan, respectively. billion, 1.168 billion yuan, 1.306 billion yuan, 1.42 billion yuan.
Peng Jiaxin, executive chairman of Tencent Music Entertainment Group, once said that online music subscription revenue continues to accelerate year-on-year growth, and the continued increase in subscriber scale and per capita income of single paying users is the main reason for the company's profit growth in 2023. According to Liang Zhu, CEO of Tencent Music Entertainment Group, the company's outstanding results in 2024 were mainly due to the marketing activities and operational optimization measures launched during the Spring Festival, which effectively increased user participation.
It is worth noting that the number of monthly active users of Tencent Music-sw online music service has declined.
In the first quarter of 2024, the number of monthly active users of Tencent Music-sw online music service was 578 million, a decrease of 2.4% from 592 million in the same period of 2023; the number of monthly active users of mobile social entertainment services was 97 million, This is a sharp drop of 28.7% from the 136 million people in the same period in 2023. In the
secondary market, Tencent Music-sw's stock price continued to strengthen after opening on May 14. It once rose to 12.12% during the session, setting the company's highest price in history since its listing on the Hong Kong stock market, at HK$61.5, and then fell back. As of today's close, Tencent Music-sw's stock price closed at HK$59.2, up 7.93%. The company's total market value is approximately HK$203.184 billion.
It is worth mentioning that Tencent Music-sw also recently announced that it will pay its first annual dividend and is expected to pay approximately US$210 million (approximately 1.516 billion yuan) in cash dividends for the 2023 fiscal year to shareholders on record as of the registration date. (This article was first published on Titanium Media app, author｜Chen Weina)
