Music

Tencent Music Entertainment Group (TME) Q4 2024 The most prominent profit calls: registration profits and …

Melina3 weeks ago

1 3 minutes read

Total revenue: 7.5 billion yuan, an increase of 8 % on an annual basis.
Online music revenue: Increase the amount of 5.8 billion yuan, and a 16 % increase on an annual basis.
Music subscription revenues: 4 billion yuan, an increase of 18 % on an annual basis.
Net profit: 2.08 billion yuan, increased by 47 % on an annual basis.
Personal profit other than ifrs: 2.4 billion yuan, an increase of 43 % on an annual basis.
Total margin: 43.6 %, an increase of 5.3 percentage points on an annual basis.
Music that drives music online: 121 million, 13 % on year on an annual basis.
ARPU: Rmb11.1, compared to RMB10.7 in the same period last year.
Social entertainment revenues: 1.6 billion yuan, a 13 % decrease on an annual basis.
Criticism and cash rewards: Rmb37.6 billion as of December 31, 2024.
Annual profits: He announced 273 million US dollars.
Share re -purchase program: A new program has been announced up to $ 1 billion.

Release date: March 18, 2025

For a full copy of the profit call, please refer to the full profit call version.

TENCENT Music Entertainment Group Nyse: TME has registered an 8 % growth year in the total revenue for Q4 2024, driven by strong performance in music and advertising subscription.
The company achieved a quarterly quarterly profit, as it reached an increase of 47 % year on an annual basis to 2.08 billion yuan.
TME’s music revenue from TME increased by 16 % on an annual basis, supported by strong growth in music subscriptions and advertising revenues.
The company has announced the new and expanded re -purchase program of $ 1 billion, which reflects confidence in future growth prospects.
TME’s SVIP membership program has seen a strong sequential growth, enhancing user and average revenue for each paid user (ARPPU).

Social entertainment and other revenue services decreased by 13 % on an annual basis, indicating challenges in this sector.
Despite the growth of the total revenue, the social entertainment sector continues to confront the declining pressure due to market changes.
The company faces a potential competition in the market, which may affect the growth of subscribers and ARPPU.
A continuous investment in artificial intelligence and technology is needed to maintain a competitive advantage, which may increase operating costs.
The company admits the sensitivity of the subscribers, which may limit aggressive pricing strategies for short -term growth.

S.: Can the administration exchange directives on growth expectations for 2025, especially for subscription revenues in music and advertising online? AThe most prominent Cussion Kar Shun Pang, CEO, that 2024 was a prominent year with a strong performance of online music services. For 2025, TME will focus on enhancing its presence through a music value chain, and expects healthy online music growth driven by increasing paid users and ARPU. Maine, the financial manager, added that the total margin improvements are expected to continue with the growth of subscription revenues and improved content costs.

S.: What is the balance between the growth of subscribers and the ARPU, and what are the expectations for the year 2025? AZhou Liang, CEO, stated that TME is still confident of the growth of revenue and profit for the year 2025, with the expectations of subscribers ’growth and continuous arpu. The company will not sacrifice long -term interests to achieve short -term gains and will focus on taking advantage of the content and innovative features to push sustainable growth.

S.: How are the consumer feelings towards appreciated spending on music and concerts, and what are the trends in the pricing of the concert tickets? ACussion Kar Shun Pang indicated that there is an increasing demand for live music experiences, with fans ready to spend on concerts and goods. The music performance industry in China is witnessing strong growth, with the expectation of stable ticket prices in 2025. TME aims to organize high -quality live offers to meet the user’s increasing expectations.

S.: What is the TME strategy about artificial intelligence in 2025, and what are the financial effects? AZhu Liang explained that TME will benefit from the capabilities of the big language model in TENCENT to enhance user reactions and music experiences. The company will focus on AI’s features such as sound quality improvements and personal music recommendations, with cost management associated with artificial intelligence investments.

S.: What is the plan to customize the capital, including stock profits and sharing re -purchase? AMaine stated that TME will continue to invest in growth opportunities while returning the value to shareholders by reshaping shares and profit distributions. The company announced a new plan for US billion dollars and increased profit payments, which reflects confidence in future operations and adherence to shareholders ’returns.

For a full copy of the profit call, please refer to the full profit call version.

This article appeared for the first time on Gurufocus.

Melina3 weeks ago

1 3 minutes read