SHENZHEN, China, March 19, 2024 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights

• Total revenues were RMB6.89 billion (US$971 million), representing a 7.2% year-over-year decrease, mainly due to the decline in revenues from social entertainment services and others. Growth in revenues from online music services partially mitigated the decline in revenues from social entertainment services and others.

• Revenues from music subscriptions were RMB3.42 billion (US$481 million), representing 45.3% year-over-year growth. The number of paying users increased by 20.6% year-over-year to 106.7 million, up 3.7 million from the third quarter of 2023.

• Net profit was RMB1.41 billion (US$198 million), representing 16.9% year-over-year growth. Net profit attributable to equity holders of the Company was RMB1.31 billion (US$184 million), representing 13.5% year-over-year growth. Non-IFRS net profit[1]was RMB1.68 billion (US$236 million), representing 12.5% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company[1] was RMB1.58 billion (US$222 million), representing 9.5% year-over-year growth.

• Diluted earnings per ADS was RMB0.83 (US$0.12), up from RMB0.72 in the same period of 2022.

• Total cash, cash equivalents and term deposits as of December 31, 2023 were RMB32.22 billion (US$4.54 billion). 

Full Year 2023 Financial Highlights

• Total revenues were RMB27.75 billion (US$3.91 billion), representing a 2.1% year-over-year decrease.

• Revenues from music subscriptions were RMB12.10 billion (US$1.70 billion), representing 39.1% year-over-year growth.

• Net profit was RMB5.22 billion (US$735 million), representing 36.0% year-over-year growth. Net profit attributable to equity holders of the Company was RMB4.92 billion (US$693 million), representing 33.8% year-over-year growth. Non-IFRS net profit[1] was RMB6.22 billion (US$876 million), representing 26.8% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company[1] was RMB5.92 billion (US$834 million), representing 24.8% year-over-year growth.

Mr. Cussion Pang, Executive Chairman of TME, commented, "2023 marked a pivotal transition at TME. As we continue to shape and propel the music industry's robust development, we are excited about its vibrant growth potential for years to come. The fourth quarter recorded accelerated year-over-year growth in music subscription revenue, anchored by consistent increases in subscribers and ARPPU. Online music services' strong performance mitigated headwinds from social entertainment services and contributed to expanded quarterly net profits. Looking ahead, we are well positioned to capture more multi-faceted opportunities, underpinned by our content and platform dual engines and supported by the online music business' relatively counter-cyclical nature."

Mr. Ross Liang, CEO of TME, continued, "Our laser focus on execution resulted in a year of efficiency. Deeper insights into users and content not only enhanced our operational efficiency but also allowed us to make music journeys more personalized for our users. Expanded user privileges, together with AI-empowered products and tools, contributed positively to subscriber conversion and retention. For 2024, we remain dedicated to delivering a more compelling user experience and easier access to music across a broader range of use cases."