Tencent Music sinks after online-music revenue per user comes up short (TME)
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Tencent Music Entertainment beat on both the top and bottom lines.Buts its monthly average revenue per paying user for its online-music business fell 1% year-over-year.Shares were down more than 6% to $17.42 apiece after the announcement.Tuesday's report was Tencent Music's first since going public in the US in December.Watch Tencent Music Entertainment trade live.Tencent Music Entertainment, the biggest streaming-music service in China, reported better-than-expected earnings for the fourth quarter. But shares were down more than 6% to $17.42 apiece after monthly average revenue per paying user.
Here are the key numbers, compared to what analysts surveyed by Bloomberg were expecting:
Adjusted earnings per share: 0.59 Chinese yuan ($0.09) versus 0.55 Chinese yuan expected Revenue: 5.4 billion Chinese yuan ($785 million) versus 5.3 billion Chinese yuan expectedMonthly Average Revenue Per Paying User - online music: 8.6 Chinese yuan, down 1.1% year-over-yearMonthly Average Revenue Per Paying User - social entertainment: 126.7 Chinese yuan, up 24.3% year-over-year"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," Kar Shun Pang, CEO of Tencent Music said in a press release.Â
"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."
This is the first time that Tencent Music has released earnings since going public in the US in December. The company postponed its initial public offering for two months over fears that the brutal sell-off that wreaked havoc on markets in October and November would affect its pricing. Tencent Music's offering raised $1.1 billion, making it the fourth-largest Chinese IPO by deal value last year.Â
Tencent Music operates several popular music brands in China â including QQ Music, Kugou, Kuwo and WeSing â and had more than 800 million unique monthly active users in the second quarter of 2018, according to its filing.
Tencent Music was up 48% this year through Tuesday.
