SHENZHEN, China, (CelebrityAccess) — Tencent Music Entertainment Group announced the financial results for their first fiscal quarter of 2023, reporting revenue of RMB7.00 billion (US$1.02 billion).
According to TME, revenues from music subscriptions were up by more than 30% year-over-year to RMB2.60 billion (US$378 million and paying users increased by 17.7% year-over-year to 94.4 million.
TME reported net profits of RMB1.15 billion (US$167 million), representing an 88.5% improvement over Q1 results in 2022.
“We started 2023 with great momentum as our strategic emphasis on quality growth propelled a strong increase in our online music revenues. We are pleased to see that the revenue size of our online music services has now caught up with social entertainment services for the first time. This signifies that our long-term commitment to developing a sustainable online music business model is bearing fruit. Our total revenues experienced healthy growth in the first quarter, while our focus on efficiency optimization also drove robust net profit growth,” said Mr. Cussion Pang, Executive Chairman of TME.
“We are glad to achieve a record-high online music paying ratio and expand ARPPU for the fourth consecutive quarter. The broad appeal of our innovative advertising formats and expanded monetization toolbox have been driving our performance. During the quarter, we deepened partnerships with top music labels and artists to further enrich both our iconic music catalogues and vertical content offerings. We continued to foster creativity and nurture artists through a rich variety of support programs, stage performances and monetization opportunities, all of which are dedicated to amplifying the influence of musicians and their works. Furthermore, to capitalize on the public’s growing demand for in-person activities, we kept exploring innovative means of interaction and monetization, while broadening our presence in the offline entertainment realm via TME Live, our online-merge-offline performance brand. Looking ahead, we will continue to prioritize high-quality growth and business development that create long-term value for our stakeholders and promote the healthy, vibrant advancement of the music industry.” Cussion Pang continued.
“We take pride in fostering a community of passionate music lovers on our platform. To better serve their evolving needs, we further refined users’ music consumption experience in the first quarter by expanding our premium sound quality and effects to more scenarios and providing more personalized listening experiences. These efforts drove a continuous growth of average daily time spent per daily active user,” said Mr. Ross Liang, CEO of TME. “Audio live streaming has become an important growth driver for our ecosystem. We are leveraging our differentiated content and interactive features to fuel its further advancement, which not only enhances user experience but also attracts more vibrant audio anchors. This, in turn, benefits our musician ecosystem by incubating talented artists, showcasing their skills and helping them reach a wider audience. In addition, through ongoing exploration of large language models (LLMs), we have invigorated our platform ecosystem with a broader range of AI-generated content (AIGC) applications. This endeavour allows us to improve musician’s efficiency in the key steps of music production as well as to provide users with a more dynamic and interactive user experience. These innovations are designed to further enrich our platform’s content, creating tremendous opportunities for us to meet users’ diverse and nuanced music tastes and social needs in new and exciting ways.”