Tencent Music Entertainment Reemerged as Subpar Growth Company post-Covid

Tencent Music Entertainment (TME) reported its Q4 revenue that was mostly inline with expectations, but TME shares fell 9.2% earlier today as its revenue still was seen on a softer side.

The company happened previously to enjoy annual revenue growth of more than 19% from mid-2020 to mid-2021, but post-pandemic growth has been rather anemic, with Q4 marking the fifth consecutive quarter of YoY revenue declines.

In numbers, Q4 revenue fell 2.4% to 7.43 billion yuan (approximately $1.08 billion), dragged down by its social entertainment business, which fell 18.2% YoY to 3.87 billion yuan. Online music service revenue, however, spiked by 23.6% to 3.56 billion yuan, offsetting other departments’ underperformance.

Music subscription revenue grew 20.6% YoY and 4.5% QoQ from Q3 2022. Online music paying users increased by 16.1% to 88.5 million, while the average revenue per paying user also rose, posting the third consecutive quarterly increase and demonstrating a YoY increase of 4.7% to 8.9m yuan.