In the final quarter of 2024, Tencent Music Entertainment Group (TME) showcased a remarkable financial performance, with total revenues climbing by 8% year-over-year to RMB7.5 billion. This growth was primarily driven by robust contributions from music subscription and advertising sectors. Notably, online music revenue surged by 16%, reaching RMB5.8 billion, while music subscription revenue hit RMB4 billion, marking an 18% increase. The company's net profit soared to RMB2.08 billion, representing a 47% rise compared to the previous year. However, social entertainment services experienced a decline of 13%, reflecting ongoing challenges in this segment. TME also unveiled an ambitious USD1 billion share repurchase program and announced an annual dividend of USD273 million, underscoring its confidence in future prospects.
Quarterly Highlights and Strategic Initiatives
During the golden autumn of 2024, Tencent Music Entertainment Group delivered impressive financial results for the fourth quarter. The company reported a significant boost in its total revenue, which reached RMB7.5 billion, a figure that reflects an 8% increase compared to the same period the previous year. A substantial portion of this success can be attributed to the flourishing online music sector, where revenues climbed by 16% to RMB5.8 billion. Music subscription revenue alone accounted for RMB4 billion, showing an 18% rise. Meanwhile, the number of paying users in the online music category expanded by 13%, reaching 121 million. Despite these achievements, the social entertainment division encountered difficulties, experiencing a 13% decline in revenue.
The company’s gross margin improved significantly, increasing by 5.3 percentage points to reach 43.6%. As of December 31, 2024, TME held RMB37.6 billion in cash and cash equivalents. In light of these accomplishments, TME introduced a new USD1 billion share repurchase initiative and declared an annual dividend of USD273 million. Executives expressed optimism about the coming year, focusing on enhancing user engagement through innovative features and leveraging artificial intelligence to refine sound quality and provide personalized music recommendations.
From a journalistic perspective, TME's recent financial report offers valuable insights into the evolving dynamics of the digital music industry. The company's ability to maintain steady growth amidst market fluctuations demonstrates its resilience and strategic foresight. By prioritizing investments in cutting-edge technology and maintaining a balanced approach to subscriber and ARPU growth, TME is well-positioned to navigate future challenges. Furthermore, their commitment to returning value to shareholders through dividends and share repurchases highlights a dedication to long-term stability and growth, inspiring confidence among investors.