Shulou(Shulou.com)11/24 Report--

According to news in the afternoon of November 15, Beijing time, Tencent Music today announced its results for the third quarter of 2022, which ended on September 30. According to the financial report, Tencent Music's total revenue in the third quarter was 7.37 billion yuan ($1.04 billion), down 5.6% from 7.81 billion yuan in the same period last year. The net profit attributable to Tencent Entertainment shareholders was 1.06 billion yuan ($149 million), up 43.4 percent from 740 million yuan in the same period last year. Under non-international financial reporting standards (Non-IFRS), the net profit attributed to Tencent Entertainment shareholders was 1.38 billion yuan (US $194 million), up 35.9% from 1.02 billion yuan in the same period last year.

Third quarter operating results: the mobile MAU (monthly active users) of online music services was 587 million, down 7.7% from 636 million in the same period last year.

The mobile MAU of social entertainment services was 155 million, down 24.4% from 205 million in the same period last year.

The number of paying users of online music services was 85.3 million, an increase of 19.8% compared with 71.2 million in the same period last year.

The number of paying users of social entertainment services was 7.4 million, down 26.0% from 10 million in the same period last year.

The monthly ARPPU (average income per paying household) of online music service is 8.8 yuan, down 1.1% from 8.9 yuan in the same period last year.

The monthly ARPPU of entertainment services was 177.3 yuan, an increase of 8.2% compared with 163.9 yuan in the same period last year.

Third quarter financial results: revenue: total revenue was 7.37 billion yuan ($1.04 billion), down 440 million yuan from 7.81 billion yuan in the same period last year, or 5.6% year-on-year.

Of this total, revenue from online music services was 3.43 billion yuan ($482 million), up 18.8% from 2.89 billion yuan in the same period last year. Revenue from social entertainment services and other businesses was 3.94 billion yuan ($553 million), down 20.0% from 4.92 billion yuan a year earlier.

Revenue cost: revenue cost was 4.96 billion yuan ($698 million), down 9.7% from 5.5 billion yuan in the same period last year.

Gross profit and gross profit margin: gross profit was 2.4 billion yuan ($338 million), up 4.1% from 2.31 billion yuan in the same period last year. The gross profit margin was 32.6%, up 3.0% from 29.6% in the same period last year.

Operating expenses: total operating expenses were 1.44 billion yuan ($202 million), down 12.3% from 1.64 billion yuan in the same period last year. Total operating expenses accounted for 19.5% of total revenue, down 1.5% from 21.0% in the same period last year.

Sales and marketing expenditure was 245 million yuan ($34 million), down 58.3 percent from 587 million yuan in the same period last year.

General and administrative expenses were 1.19 billion yuan (US $168 million), an increase of 13.4% compared with 1.05 billion yuan in the same period last year.

Operating profit: operating profit was 1.26 billion yuan ($177 million), an increase of 37.2% compared with 919 million yuan in the same period last year.

Income tax expenditure: the effective tax rate is 12.2%, compared with 11.5% in the same period last year.

Net profit: net profit was 1.09 billion yuan ($154 million), up 38.7% year-on-year and 22.5% month-on-month.

Under non-international financial reporting standards (Non-IFRS), net profit was 1.41 billion yuan ($198 million), up 32.7 percent from a year earlier and 32.5 percent from a month earlier.

The net profit attributable to Tencent Entertainment shareholders was 1.06 billion yuan ($149 million), up 43.4 percent from 740 million yuan in the same period last year.

Under non-international financial reporting standards (Non-IFRS), the net profit attributed to Tencent Entertainment shareholders was 1.38 billion yuan (US $194 million), up 35.9% from 1.02 billion yuan in the same period last year.

Basic and diluted earnings per American depositary share (ADS) were .67 yuan ($0.09) and 66 yuan ($0.09), respectively.

Under non-international financial reporting standards (Non-IFRS), basic and diluted earnings per American depositary share are 0.87 yuan ($0.12) and 0.86 yuan ($0.12), respectively.

Cash and cash equivalents: as of September 30, 2022, Tencent Music held cash and cash equivalents, term deposits and short-term investments totaling 25.45 billion yuan ($3.58 billion), compared with 25.8 billion yuan as of June 30, 2022.

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