Tencent Music’s Net Profits Attributable to Equity Holders Dropped 12% in Q2

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(Source: Digital Music News)

Tencent Music Entertainment Group, an online music and audio entertainment platform in China, on Monday announced its 2021 Q2 financial report, showing net profits attributable to equity holders of the company reaching 1.12 billion yuan ($173 million), a decrease of 12% year-on-year.

During the three months ended June 30, 2021, the Shenzhen-based music platform’s total revenue amounted to 8.01 billion yuan, representing an increase of 15.5% year-on-year.

The firm’s online music services revenues grew by 32.8% year-on-year, while revenue from music subscriptions reached 1.79 billion yuan, representing 36.3% year-on-year growth.

The number of users paying for online music grew by 5.3 million to reach a total 66.2 million, an increase of 40.6% year-on-year and the largest quarterly net increase since 2016. The paying ratio was 10.6%, up from 7.2% in the second quarter of 2020 and 9.9% in the first quarter of 2021.

“We deepened our cooperation with the broader Tencent ecosystem, including leveraging WeChat Video Account, to enrich video content offering and cultivate a dynamic platform for artists and users to unleash their creativity,” concluded Mr. Ross Liang, CEO of Tencent Music. One recent example was QQ Music joining forces with Wechat Video Account to present Elegant Summer Live, an online event featuring well-known musicians and bands.

QQ Music also launched a feature which allows users to update their Wechat status with the songs they’re listening to, making music sharing more dynamic and fun.

Online social entertainment mobile MAUs declined year-over-year as a result of increasing competition with other pan-entertainment platforms, TME said in the report. To respond to the evolving environment, the company recently launched product upgrades and initiatives, such as WeSing’s upcoming upgrades to online karaoke rooms and virtual live streaming rooms.

The company continued to deepen partnerships with music labels while making inroads in diverse music verticals, including new hits, Chinese ancient style, hip-hop, and music for gaming, movies, television programs and variety shows.

“We would like to reiterate that TME sincerely accepts the decision issued in July by the regulator pertaining to exclusive music licensing arrangements. We are committed to fully complying with all requirements in a timely manner,” said Mr. Cussion Pang, Executive Chairman of Tencent Music.

SEE ALSO: Tencent Music Ordered to Give Up Exclusive Online Music Licensing Rights, Benefiting Competitors