China's Leading Audio Entertainment App Tencent Music's Users Decline In Q4, But Paying Subscribers Surge
Portfolio Pulse from Anusuya Lahiri
Tencent Music Entertainment Group (TME) reported a Q4 revenue decline of 7.2% Y/Y to $971 million, surpassing consensus estimates. Despite a decrease in MAUs, paying subscribers surged by 20.6% Y/Y to 106.7 million. The company saw a significant increase in online music service revenues by 41.1% Y/Y and a 45.3% increase in music subscription revenues. However, social entertainment services revenue declined by 51.6% Y/Y. The gross margin improved to 38.3%, and operating profit increased by 23.5% Y/Y. TME shares rose 0.67% in premarket trading. Investors can also gain exposure through VXUS and VWO ETFs.
March 19, 2024 | 11:44 am
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Tencent Music reported a Q4 revenue decline but surpassed consensus estimates and saw a significant increase in paying subscribers and online music service revenues.
The positive earnings report, surpassing consensus estimates, and significant growth in paying subscribers and online music service revenues are likely to positively impact TME's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Vanguard FTSE Emerging Markets ETF (VWO) includes TME, which has shown strong Q4 earnings and subscriber growth, potentially affecting the ETF.
TME's strong performance in Q4 could indirectly benefit VWO, as TME is part of the ETF's holdings. Positive earnings and subscriber growth in TME may attract investor interest in VWO.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Vanguard Total International Stock ETF (VXUS) offers exposure to TME, which reported a positive earnings surprise and growth in paying subscribers.
Given TME's positive earnings report and its inclusion in VXUS, the ETF might experience a positive impact, albeit indirectly, due to investor interest in TME's growth.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50