News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Tencent Music beats profit estimates as content push brings in listeners

11/08/2021 | 05:08pm EDT
FILE PHOTO: Illustration picture of China's Tencent Music Entertainment Group

(Reuters) -China's Tencent Music Entertainment Group beat analysts' estimates for third-quarter profit on Monday, as efforts to bolster content attracted more paying users to its Spotify-like music streaming platform.

Online music paying users jumped 37.7% to 71.2 million from a year earlier, while it increased by 5 million from the prior quarter.

The results come amid a regulatory crackdown in China on sectors from tech to education and property. The company's parent, Tencent Holdings, said in August it had ended all exclusive music copyright agreements after regulators barred it from such deals.

Excluding items, Tencent Music earned 0.61 yuan per American Depository Share (ADS), topping estimates of 0.49 yuan per ADS, according to Refinitiv IBES.

"While the online music industry in China is adapting to regulatory changes and facing competition for time spent from short video services, we will continue to differentiate both our online music and social entertainment services and execute our dual engine content-and-platform strategy," Executive Chairman Cussion Pang said in a statement.

Tencent Music's social entertainment services business, which includes karaoke platforms where users can live stream concerts is its primary source of revenue.

Total revenue rose 3% to 7.805 billion yuan ($1.22 billion) in the third quarter, while analysts had expected 7.845 billion yuan.

Profit attributable to equity holders of the company fell to 740 million yuan, from 1.13 billion yuan a year earlier.

($1 = 6.3980 Chinese yuan renminbi)

(Reporting by Arunima Kumar and Eva Mathews in Bengaluru; Editing by Sriraj Kalluvila)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
SPOTIFY TECHNOLOGY S.A. 1.31% 105.77 Delayed Quote.-55.39%
TENCENT HOLDINGS LIMITED 2.12% 347.6 Delayed Quote.-19.97%
TENCENT MUSIC ENTERTAINMENT GROUP 0.00% 4.06 Delayed Quote.-40.73%
Latest news "Economy & Forex"
05/19China cuts borrowing rate more than expected to revive housing sector
RE
05/19Japan PM to unveil boost in defense spending at Biden summit -TV Asahi
RE
05/19AUSTRALIAN ELECTION ON SATURDAY : What you need to know
RE
05/19Japan April consumer inflation beats BOJ target for 1st time in 7 years
RE
05/19BANK INDONESIA TO PULL RATES LEVER IN Q3, JUNE MOVE POSSIBLE : Reuters Poll
RE
05/19AUSTRALIAN ELECTION ON SATURDAY : What you need to know
RE
05/19Indonesia to impose domestic sales requirement for palm oil -minister
RE
05/19Cost of living in focus as Australia's election race hits final stretch
RE
05/19Gold dips; set for first weekly gain in five as dollar falls
RE
05/19Asian shares jump as China cuts key lending benchmark
RE
Latest news "Economy & Forex"