#China #Shenzhen #Tencent Music #online music #TME

Tencent Music Entertainment Group's 2024 Financial Results

On March 18, 2025, Tencent Music Entertainment Group (TME), the leading online music and audio entertainment platform in China, announced its unaudited financial results for the fourth quarter and the full year ending December 31, 2024. The results highlighted significant growth in revenues and profits, indicating a strong position within the competitive online music industry.

Fourth Quarter Highlights

In Q4 2024, TME reported total revenues of RMB 7.46 billion (approximately USD 1.02 billion), marking an 8.2% increase from the same period in 2023. This growth was largely driven by a surge in revenues from online music services despite a decline in social entertainment services. Specifically, revenue from music subscriptions reached RMB 4.03 billion (USD 552 million), reflecting an impressive 18.0% year-over-year growth. The number of paying users also saw a positive trend, increasing by 13.4% to 121 million users.

Net profit for the quarter was RMB 2.08 billion (USD 284 million), representing a remarkable 47.3% increase from the previous year. Additionally, diluted earnings per American Depository Share (ADS) rose to RMB 1.26 (USD 0.17) from RMB 0.83 in Q4 2023. The company’s total cash holdings at the end of the quarter were substantial, totaling RMB 37.58 billion (USD 5.15 billion).

Annual Financial Overview

For the full year 2024, TME reported total revenues of RMB 28.40 billion (USD 3.89 billion), which is a 2.3% increase year-over-year. The significant contributor to this revenue was again the music subscription sector, which saw revenues of RMB 15.23 billion (USD 2.09 billion), a notable 25.9% growth from 2023. The full-year net profit stood at RMB 7.11 billion (USD 974 million), which is a 36.2% increase, showcasing TME's operational efficiency.

The board of directors also announced an annual cash dividend of approximately USD 273 million, alongside a new share repurchase program for up to USD 1 billion to begin in March 2025. This move signals TME's commitment to delivering value to its shareholders.

Strategic Focus and Future Outlook

Mr. Cussion Pang, Executive Chairman of TME, emphasized that 2024 was a pivotal year for the company, with a strategic focus on enhancing user experience and expanding its online music services leading to increased profitability and market share. The company has initiated several innovative projects to strengthen its content offerings, including partnerships with prominent artists and development of unique music experiences, thus shaping a vibrant ecosystem for its users.

CEO Mr. Ross Liang highlighted ongoing efforts to utilize technology to enhance user engagement, noting the integration of AI in service personalization and content creation. The SVIP initiative, aimed at high-end users, has been particularly successful, driving both membership growth and revenue per user.

Looking ahead to 2025, Tencent Music plans to continue its trend of innovation, aiming to leverage AI more deeply in user interactions, thereby enhancing the music listening experience even further. This strategic innovation aligns with its objective of sustaining growth in the fast-evolving digital music landscape.

Overall, Tencent Music Entertainment Group’s strong financial results and ambitious future plans position it well for continued success in the online music industry.