Entertainment
Tencent Music’s social entertainment weakness drags results down, shares fall (NYSE:TME)
Chinese music streaming company Tencent Music (NYSE:TME) on Tuesday reported a miss on both top and bottom lines for its second quarter results, hurt by steep declines at its social entertainment services segment.
Shares of the company are down 13.7% at $11.33 in premarket New York trading.
The company said its monthly active users for social entertainment services slumped nearly 32% to 93 million, and ARPPU under the same fell 45.8% to RMB 73.2. These declines led to a nearly 43% drop in the segment revenue to RMB 1.74B.
Online music saw a 4% drop in MAUs to 571 million, but ARPPU was up 10.3% to RMB 10.7. Revenue under the segment rose nearly 22% to RMB 5.42B.
Music subscriptions saw a growth of 29.4% year-over-year in the second quarter. “We remain optimistic about the music industry’s long-term potential and are committed to sustainably achieving our mid- to long-term goals, at a healthy pace and with the right balance,” CEO Cussion Pang said in a statement.
Net profit for the three months ended June 30 was $247M, or $1.04 per American Depository Share.
On an adjusted basis, the Shenzen, China-based company earned 16 cents per ADS, missing the average analyst consensus by just 1 cent.
Revenue fell 1.7% to $985M and was short of analyst expectations by over $11M.