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Tencent Music Entertainment Reports Revenue, Subscriber Growth In 2021

Courtesy: Tencent.
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SHENZEN, China  (CelebrityAccess) — Chinese music streaming giant Tencent Music Entertainment Group revealed that while revenue slid in the fourth quarter of 2021, the company saw modest growth for the full year.

For the fourth quarter of 2021, TME reported revenues of $1.19 billion down by 8.7% year-over-year, despite increases in music service revenue which TME said improved by 4.3% year-over-year.

Paying users for online music improved substantially over the quarter, according to TME, reaching 76.2 million subscribers across all platforms, up by increasing by 36.1% year-over-year.

On a sequential basis, the number of online music paying users grew by 5.0 million and the paying ratio was 12.4%, up from 11.2% in the third quarter of this year and 9.0% in the fourth quarter of last year.

In all, TME reported net profit of $91 million during the quarter.

For the full fiscal year of 2021, TME saw revenues increase to $4.90 billion, up by 7.2% from the previous year’s results.

Revenue from TME’s online music services grew by 22.7% year-over-year, driven by a 31.9% increase in subscriptions, which accountd for $1.15 billion in revenue in 2021, the company said.

“In 2021, we registered 7% year-over-year growth in total revenues and sustained profitability, boosted by robust growth of online music paying users reaching a record high of 76.2 million, reflecting the vitality and resilience of our business through resolute execution of the dual engine content-and-platform strategy. While fourth quarter social entertainment revenues moderated amid increasing competition and changing macro environment, our subscription revenues sustained strong growth. We added 5.0 million net paying users by continuing to provide high-quality music content, an exceptional streaming experience, and diverse, industry-leading platform features. In the future, we will focus on optimizing our cost structure and improving operating efficiency across our businesses while continuing to drive innovation, better user experiences and healthy industry development,” said Mr. Cussion Pang, Executive Chairman of TME.

“Leveraging our proprietary tools and technologies, we are pleased to see our investment in original music production starting to pay off, as well as an increasing number of indie musicians finding a home on our Tencent Musician Platform. With broad capabilities across the content value chain, we will continuously expand content production, licensing, operation, promotion, and monetization efforts to augment the scale and fortify the quality and competitiveness of our music catalog. Based on the confidence we have in the future of our dual engine content-and-platform strategy, we have completed over 50% of the $1 billion share repurchase program announced last year, and plan to complete the rest of the program throughout this year. In addition, to provide our shareholders with greater liquidity and protection amid an evolving regulatory environment, we are pursuing a secondary listing on the Main Board of the Hong Kong Stock Exchange through a listing by way of introduction (which is a direct listing without any offering of new shares), subject to regulatory approvals,” Mr. Pang concluded.


“We are encouraged by the progress we’ve made with key advancements in our innovative platform strategy, built on our four pillars of music entertainment: listen, watch, sing and play. For example, QQ Music, Kugou Music and Kuwo Music recently released major version upgrades incorporating refreshed product concepts, as well as optimized operations, UI design and other technological innovations,” said Mr. Ross Liang, CEO of TME.

“Long-form audio has also proven to be an excellent complement to our powerful music portfolio, contributing to expanding user scale with long-form audio MAUs reaching over 150 million, representing a 65% growth year-over-year. Moreover, we have tightened our connection with the broader Tencent ecosystem and gained multi-dimensional benefits including differentiated promotion channels and more content and tools available to our platform, which also invigorate our musician ecosystem. Moving forward, we will tirelessly drive product innovations that will ultimately make our users more engaged in our platform’s immersive pan-entertainment experience,” concluded Mr. Liang.

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