Tencent Music beats Q4 expectations, announces dividend and share buyback

Published 18/03/2025, 10:28
Tencent Music beats Q4 expectations, announces dividend and share buyback

Investing.com - Tencent Music Entertainment Group (NYSE:TME) reported fourth-quarter earnings that surpassed analyst estimates, driven by strong growth in its online music services.

The leading Chinese online music platform posted adjusted earnings per American Depositary Share (ADS) of RMB1.26 (US$0.17) for the quarter ended December 31, 2024, beating the analyst consensus of RMB1.22 by RMB0.04.

Revenue for the period came in at RMB7.46 billion (US$1.02 billion), exceeding the expected RMB7.3 billion and representing an 8.2% YoY increase.

Tencent (HK:0700) Music’s shares edged up 0.77% following the earnings release, indicating a muted market response to the results.

The company’s performance was primarily bolstered by its music subscription business, which saw revenues surge 18% YoY to RMB4.03 billion (US$552 million).

The number of paying users grew by 13.4% YoY to 121 million, while the average revenue per paying user (ARPPU) increased from RMB10.7 to RMB11.1.

In a move to enhance shareholder value, Tencent Music’s board approved an annual cash dividend of approximately US$273 million for the year ended December 31, 2024.

Additionally, the company authorized a new Share Repurchase Program of up to US$1 billion over a 24-month period starting March 2025.

For the full year 2024, Tencent Music reported total revenues of RMB28.40 billion (US$3.89 billion), a 2.3% YoY increase, with music subscription revenues growing 25.9% YoY to RMB15.23 billion (US$2.09 billion).

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