BRIEF: Tencent Music profit jumps on strong gains for music service
Tencent Music Entertainment Group (TME.US; 1698.HK) said Tuesday its revenue rose 6.8% year-on-year to 7.02 billion yuan ($1 billion) in the third quarter, while its non-GAAP adjusted net profit jumped 28.8% to 1.81 billion yuan.
During the period, the company’s online music service revenue rose 20.4% to 5.48 billion yuan, mainly due to a 15.5% increase in its number of paying users to 119 million. However, revenue from its social entertainment services fell 23.9% to 1.54 billion yuan, partly offsetting the strong music services growth. The company also said its cost of revenue fell 4.8% to 4.02 billion yuan during the quarter, which partly contributed to the improved profit.
Its stock fell 10.3% to HK$40.6 in early Wednesday trade in Hong Kong.
By A. Au
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