Tencent Music Entertainment, a subsidiary of Chinese internet giant Tencent, reported an uptick in total revenue but a fall in net profits in the first quarter of 2020, as the coronavirus pandemic impacted the company’s social entertainment services business.
For the three months through March, total revenue rose 10% to 6.31 billion yuan ($891 million), according to the company’s earnings report published Monday.
Tencent Music relied heavily on its social entertainment services during the first quarter, including music-focused livestreams and online karaoke, with sales from these segments accounting for nearly 70% of total revenues. The company earned 1.21 billion yuan from music subscriptions during the period, representing a year-on-year increase of 70%.
However, monthly average revenue per paying user from the company’s social entertainment services fell 12.9% year-on-year to 111.10 yuan, which the company attributed to the coronavirus pandemic and adjustments to certain interactive features on their livestreaming platforms.
“While acknowledging the impact on our social entertainment services from the Covid-19 pandemic, we have started to see a moderate recovery recently,” Tencent Music CEO Cussion Pang said in a statement.
In the first three months of this year, net profit attributable to equity holders totaled 887 million yuan, down from 987 million yuan in the same period of last year, the earnings report said.
Paid users of the company’s online music services and social entertainment services jumped 50.4% and 18.5% to 42.7 million and 12.8 million respectively.
Contact reporter Ding Yi (firstname.lastname@example.org)