Tencent Music Entertainment Reports Strong Start to 2024, Announces Dividend Policy

Tencent Music Entertainment Group (NYSE:) Q1 2024 Earnings CallTranscript


On Monday, Tencent Music Entertainment Group (TME) held its earnings call for the first quarter of 2024, during which the company reported a robust financial performance driven by its strategic focus on content and platform development. The company announced an annual cash dividend policy and confirmed $210 million in cash dividends for 2023, reflecting its commitment to shareholder return. Cussion Pang, Executive Chairman of TME, and Ross Liang, CEO of the company, alongside Shirley Hu, CFO, provided insights into the company's strategies and financial outcomes. This transcript summarizes the key highlights from the call, including growth metrics, content development, platform innovation, and the company's outlook.

Revenue and Financial Highlights:

  • Online music revenues increased by 43% year-over-year in Q1 2024, driven by a surge in music-paying users and strong net profit margin expansion.
  • The number of music-paying users reached 113.5 million, with a net addition of 6.8 million users during the quarter.
  • Gross margin improved to 40.9%, while operating expenses were controlled at 16.8% of total revenues.
  • Net profit for Q1 2024 stood at RMB 1.5 billion.

Despite strong music and advertising revenue growth, social entertainment services saw a 15% decline.

The company expects an increase in sales and marketing expenses in Q2 2024, attributed to investments in high-quality content, original content productions, and new products and technologies.

Continuing its focus on content development and social responsibility initiatives, TME announced an annual cash dividend policy and confirmed $210 million in cash dividends for 2023.

Content Development:

  • TME renewed and expanded its partnership with record labels to enhance its music library and provide innovative value-added privileges, features, and promotion services.
  • The company announced several new collaborations with record labels, including Time Fengjun Entertainment, HIM International Music, and more.
  • TME expanded its original content offerings, delivering hit soundtracks for TV dramas like "The Legend of Shen Li" and "In Blossom," featuring top tracks by TME's strategic partner artists.
  • The company also partnered with strategic artists and indie musicians to produce and promote music, building its portfolio of high-quality music offerings.

Platform Development:

  • TME plans to introduce new advertising formats and leverage non-subscriber traffic to drive advertising revenues.
  • The company will continue to invest in AI-driven initiatives, self-commissioned content, and new products and technologies to improve user engagement and retention.
  • TME aims to build its own IP and organize live tours for top-tier artists to enhance its social entertainment services.
  • The company will explore new initiatives like long-form audio and Internet of Things (IoT) to complement its existing services.


Tencent Music Entertainment's financial performance in the first quarter of 2024 demonstrates the company's ability to adapt and innovate in the dynamic market. With a focus on content development, platform innovation, and social responsibility initiatives, TME sets a positive tone for the future. The company's commitment to strengthening its core business and expanding its presence in the music industry puts it in a favorable position for sustained growth and expansion. Investors and industry observers will likely keep a close eye on how these initiatives unfold in the coming quarters.

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