Shifting patterns across the departments
Tencent Music Entertainmen T (listed on NYSE as TME and on HKEX with code 1698), China’s premier music streaming platform, reported an annual net profit of 7.11 billion yuan in 2024 (approximately €890 million/\$974 million) in 2024, marking a significant increase of 36.2% compared to the previous year. This major player in the industry manages several platforms including QQ Music , Kugou Music and WeSing In the period, the apps segment reported revenues totaling 28.40 billion yuan (€3.56 billion/$3.89 billion), marking an increase of 2.3% from the year 2023.
The primary catalyst was online music platforms, which experienced a significant surge in earnings, jumping by 25.5% to reach 21.74 billion yuan (equivalent to 2.74 billion euros or $2.98 billion). The subscription income, driving most of this expansion for Tencent Music Entertainment (TME), skyrocketed by 25.9%, totaling 15.23 billion yuan (or about 1.91 billion euros/$2.09 billion).
The income generated from social entertainment services such as karaoke and live streaming amounted to just 6.66 billion yuan (equivalent to 830 million euros or $910 million). This represents a substantial decline of 36.1% when compared to the previous year’s figures. However, the platform saw an impressive improvement in its gross margin, which rose from 35.3% in 2023 to 42.3% in 2024, primarily due to effective cost management and the successful execution of strategic initiatives. SVIP The subscription service provides special advantages to members, including enhanced audio quality and superior sound effects, along with an extended collection of digital content.
The firm has initiated a $500 million program for buying back shares.
(Michael Leahy. Source: music_zone/TME Image: ©Daniel Wu / Unsplash)