Photo Credit: Tencent Music Entertainment Group

Leading Chinese online music and audio entertainment platform Tencent Music Entertainment Group posts its Q1 2024 financial results, reporting a revenue jump of 39.2% year-over-year.

Tencent Music Entertainment Group, the leading online music and audio entertainment platform in China, has posted its unaudited financial results from the first quarter of the year. The company reported both a revenue jump of 39.2% year-over-year and total paying subscribers reaching 113.5 million.

The company operates China’s highly popular music apps QQ Music, Kugou Music, Kuwo Music, and WeSing. Tencent Music’s platform comprises online music, audio, and karaoke, music-centric live streaming, and online concert services.

Revenues from music subscriptions were $501 million, or a 39.2% year-over-year increase, with the total number of paying users increasing by 20.2% year-over-year to 113.5 million. The number of paying users has grown by 6.8 million sequentially — the largest quarter-over-quarter net increase to date.

Tencent’s net profit was $212 million, growing 27.5% year-over-year. Net profit attributable to equity holders of the company was $197 million, growing 23.9% year-over-year. Meanwhile, non-IFRS net profit was $251 million, which also represented a 23.9% year-over-year growth.

“We kicked off 2024 with impressive results,” commented Cussion Pang, Executive Chairman of Tencent. “Online music continued to grow robustly, registering record-high net adds of 6.8 million music subscribers with healthy ARPPU for the first quarter.”

“Our focus on high-quality growth also yielded solid net profit margin expansion. By broadening content and introducing more tailored platform offerings that resonate deeply with users, we continue to strengthen our vibrancy and competitiveness in this dynamic industry.”

“Drawing on our extensive industry experience and capitalizing on the Chinese New Year seasonality, our effective marketing campaigns led to higher-than-expected first-quarter music subscriber growth,” added Tencent CEO Ross Liang.

“Meanwhile, we are pleased to see a steady user base recovery thanks to our optimized operations efforts. Through enhanced algorithms, product features and AIGC applications, we are consistently creating more compelling music experience that deepen users’ engagement on our platform.”

Tencent’s total operating expenses decreased by 7.6% year-over-year to $157 million. Operating expenses as a percentage of total revenues decreased to 16.8% from 17.5% in the same period last year.

Driven by improved operating efficiency and effective cost controls, the company’s operating profit grew to $271 million in the first quarter of 2024, representing a 41.9% year-over-year increase.