Tencent Music Q2: Revenue Misses Estimates, Social Entertainment Takes a Hit, Adds 10M Subscribers in First Half
Portfolio Pulse from Anusuya Lahiri
Tencent Music Entertainment Group (NYSE:TME) reported a Q2 2024 revenue decline of 1.7% YoY to $985 million, missing analyst estimates. The decline was due to a drop in social entertainment revenues, partially offset by growth in online music services. Key metrics showed a decline in MAUs for both online music and social entertainment, but an increase in ARPPU for online music and a rise in online music paying users. Despite the revenue miss, the company saw a 42.8% YoY increase in operating profit and a 770 bps rise in gross margin. TME stock is trading 7.16% lower premarket.
August 13, 2024 | 10:49 am
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Tencent Music Entertainment Group (NYSE:TME) reported a Q2 2024 revenue decline of 1.7% YoY to $985 million, missing analyst estimates. The decline was due to a drop in social entertainment revenues, partially offset by growth in online music services. Despite the revenue miss, the company saw a 42.8% YoY increase in operating profit and a 770 bps rise in gross margin. TME stock is trading 7.16% lower premarket.
The revenue miss and significant decline in social entertainment revenues are likely to negatively impact investor sentiment in the short term. Despite positive growth in online music services and an increase in operating profit, the stock is trading lower premarket, indicating a negative short-term impact.
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