Tencent Music (TME) Reports In-Line Q4 EPS, Slight Miss on Revenues

March 19, 2019 4:37 PM EDT

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Tencent Music (NYSE: TME) reported Q4 EPS of $0.08, in-line with the analyst estimate of $0.08. Revenue for the quarter came in at $785 million versus the consensus estimate of $785.82 million.

"Our initial public offering in December 2018 has launched us onto the international stage, elevated the global recognition towards our brand, and endorsed our successful track record," stated Mr. Cussion Kar Shun Pang, Chief Executive Officer of Tencent Music. "During the fourth quarter of 2018, we recorded strong growth across our business lines, including both online music and social entertainment services, and solidified our market leadership. To fuel our growth for the years to come, we are firmly committed to continue investing in premium content offering, innovative products and proprietary technology. Going into 2019, we will continue executing relentlessly our mission to use technology to elevate the role of music in people's lives. We are confident that our capability in product innovation, investment in technology advancement, and commitment to developing and promoting high quality content should not only augment our market leadership, but also foster the growth and development of the overall music industry."

Mr. Cheuk Tung Tony Yip, Chief Strategy Officer of Tencent Music, remarked, "We are pleased to report that both online music and social entertainment services have continued their healthy growth across the board during the fourth quarter of 2018. Through content enrichment, product innovation, and technology development, we have been able to attract and retain our vast user base and construct a self-reinforcing virtuous ecosystem. In content, we expanded our strategic partnerships with well-known domestic and international music labels as well as produced more proprietary content such as music-centric variety shows. In product and technology, we further enhanced personalization which resulted in increased music consumption driven by recommendations, and also offered more features that enable users to engage with music-related short videos. Our market-leading user base, engaging artist-fans interactivity, and unrivaled content promotion capabilities have formed a unique set of value propositions for content partners to reach an unparalleled audience base within our ecosystem."

"We delivered strong revenue growth during the fourth quarter of 2018 driven by the increase in paying users across our online music and social entertainment services as well as the increase in user spending in social entertainment," commented Ms. Shirley Min Hu, Chief Financial Officer of Tencent Music. \"We achieved strong operating cash flow throughout the year. We continued to invest in our content offering, including through partnering with more domestic and international music labels and producing more proprietary in-house content to meet user demands for diverse forms of music entertainment. We believe that such investments over time will not only improve our user engagement and monetization but also strengthen our competitive advantages."

For earnings history and earnings-related data on Tencent Music (TME) click here.

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