Tencent Music's Impressive Growth and Strategic Partnerships
2024-11-24
Tencent Music Entertainment Group, a prominent online music entertainment platform in China, conducted its Third Quarter 2024 Earnings Conference Call with key participants including Millicent T. (Head of IR), Kar Shun Pang (Executive Chairman), Ross Liang (CEO), and Shirley Hu (CFO). During the call, the company highlighted its remarkable performance in the third quarter, revealing a 20% year-over-year growth in online music services revenue and a 29% year-over-year increase in adjusted net profit.
The company's strategy focuses on enriching its music offerings and expanding content diversity through enhanced partnerships with both domestic and international record labels, the introduction of innovative interactive events, and the establishment of strategic collaborations with global music corporations. Recent endeavors include contract renewals with leading Chinese labels, a strategic partnership with Galaxy Corporation, and collaborations with renowned artists and emerging musicians.
Tencent Music emphasized its commitment to driving growth by intensifying integration across products to deliver increased value to users, concentrating on expanding its subscriber base, and boosting Average Revenue Per Paying User (ARPD). Leveraging new technologies to elevate user experiences, the company successfully expanded its subscriber base and achieved a significant milestone with over 10 million highly engaged SVIP subscribers.
In terms of financial performance, Tencent Music reported a 35% year-over-year surge in IFRS net profit and a 29% year-over-year increase in non-IFRS net profit. The company's total revenue for 2024 amounted to RMB 3.8 billion, marking a 20% increase year-over-year. Additionally, the Average Revenue Per User (ARPU) in 2024 rose to RMB 10.8, a 5% increase from the previous year, with 119 million online paying users, reflecting a 16% increase year-over-year.
Tencent Music's strategic focus on sustainable growth involves expanding SVIP memberships, enhancing its advertising business, elevating content production quality, and innovating technologies to boost user engagement. The company is dedicated to maintaining stringent marketing control, improving content quality and user experience, and driving revenue growth through SVIP privileges and operational strategies.
During the call, discussions centered on the company's initiatives to enhance Monthly Active User (MAU) growth, drive revenue within the social and entertainment business segments, optimize user experiences, and retain users. Strategies to improve SVIP user engagement, enhance monetization efficiency, and drive conversion rates were underscored, along with plans to fund SVIP user growth and offer exclusive privileges to members.
Overall, Tencent Music Entertainment Group's Third Quarter 2024 Earnings Conference Call provided valuable insights into the company's robust performance, strategic endeavors, and future growth prospects within the competitive online music entertainment industry. Participants were encouraged to direct any further inquiries to the Investor Relations team for additional information.