Photo: IC Photo
New York-listed Tencent Music Entertainment Group (TME) announced Monday its unaudited second-quarter financial report — and it wasn’t much of a hit.
The company’s total revenues increased by 31% year-on-year to 5.9 billion yuan ($859 million), but net profit rose to the tune of just 2.5% to 9.27 million yuan.
The figures hit an off-key note with investors as TME’s stock nosedived 8% in after-hours trading.
Social entertainment services and others, like online karaoke and livestreaming, were TME’s chart-topping sources of revenue, raking in 4.34 billion yuan and upstaging the company’s online music unit which took just 1.56 billion yuan.
And although TME said its 31 million paying users for online music services were a record high, the company’s total monthly active users grew at a languid 1.2% to 652 million. Monthly average revenue per paying user also dropped 1.1% to 8.6 yuan, the company said.
TME is one of the biggest players in China’s fast-growing music market, boasting the largest music library and the most copyrights.
But as any music nerd will tell you, the guy with the biggest vinyl collection is rarely the most engaging. TME, too, struggles to get users to pay to listen to its content.
Perhaps a big-name collaboration will help liven things up. TME’s parent company, Tencent Holdings, has spoken with global music giant Vivendi about buying up to 20% of Universal Music Group.
Contact reporter Zhao Runhua (firstname.lastname@example.org)