China's answer to Spotify beats expectations for quarterly revenue

36
1
China's answer to Spotify beats expectations for quarterly revenue

Tencent Music Entertainment Group beat expectations for quarterly revenue on Monday as its advertising business rebounded and more people subscribed to its music streaming platform.

Tencent Music, the China's answer to Spotify, has tried to attract more paying users in recent months by focusing on long format audio and expanding its library through license deals with Universal Music Group and Sony Music.

The total revenue of the company Tencent Holdings Ltd-controlled Company increased in the 2nd quarter to 8.01 Billion Yuan, up 15.5% from the earlier point (2003 Figure). Analysts were expecting a figure of 8.13 billion yuan, according to Refinitiv IBES data.

The results come amid the intensifying regulatory crackdown on China's internet giants.

Tencent Music reiterated in a statement that it accepted a decision by the regulator on exclusive music licensing arrangements in July, expected to have some impact on its operations.

Profit attributable to equity holders of the company fell to 939 million yuan, from 827 million yuan a year earlier.