Tencent Music Surpasses Q4 Estimates with Dividend and Buyback Announcement
Tencent Music Entertainment Group (NYSE:TME) has reported impressive fourth-quarter earnings, exceeding analyst expectations thanks to strong growth in online music services.
Key Highlights of the Earnings Report:
- Adjusted Earnings Per ADS: RMB1.26 (US$0.17), surpassing the consensus estimate of RMB1.22.
- Revenue: RMB7.46 billion (US$1.02 billion), an 8.2% year-over-year increase, exceeding the expected RMB7.3 billion.
- Music Subscription Revenue: Surged 18% year-over-year to RMB4.03 billion (US$552 million).
- Paying Users: Increased by 13.4% year-over-year to 121 million.
- Average Revenue Per Paying User (ARPPU): Grew from RMB10.7 to RMB11.1.
Shareholder Value Initiatives:
- Annual Cash Dividend: Approved for approximately US$273 million for the year ended December 31, 2024.
- Share Repurchase Program: Authorized up to US$1 billion over 24 months starting in March 2025.
Full Year 2024 Performance:
- Total Revenues: RMB28.40 billion (US$3.89 billion), a 2.3% year-over-year increase.
- Music Subscription Revenues: Grew 25.9% year-over-year to RMB15.23 billion (US$2.09 billion).
Market Reaction:
- Tencent Music’s shares edged up 0.77% following the earnings release, indicating a muted market response.
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Disclaimer: This article was generated with the support of AI and reviewed by an editor.