Tencent Music Beats Analyst Expectations in Rebound Q3 Earnings Report

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Tencent Music announced its third-quarter 2019 results on Monday

Tencent Music Entertainment logo is seen displayed on a smartphone.

The company -- which owns Chinese music services QQ Music, Kugou Music and Kuwo Music -- reported total revenue of ¥6.51 billion Chinese yuan during the quarter that ended Sept. 30, representing a 31% increase year-over-year. That number also represents a roughly 13% increase over Q2, when total revenues were ¥5.74 billion .

Tencent also recorded 12% growth in operating profit year-over-year, from ¥1.06 billion to ¥1.19 billion . That’s also a 9% increase over Q2 2019, when operating profit was ¥1.09 billion . Additionally, cost of revenues increased to ¥4.30 billion , which was up 42.9% from the same quarter last year. That rise was primarily due to an increase in content expenses and revenue sharing fees. Gross profit was ¥2.21 billion , a 12.

There was also a rebound in monthly average ad revenue per user from Q2, when ARPPU for Tencent's music services fell slightly year-over-year. In Q3, ARPPU for the company's music services rose 4.7% year-over-year to ¥8.9 and was also up 3.5% from last quarter’s ¥8.6. Additionally, ARPPU for Tencent’s social apps, which includes WeSing, increased from the same quarter last year, rising 7.4% to ¥127.3 .

 

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