The following is a summary of the Tencent Music Entertainment Group (TME) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Tencent Music reported a 28% year-over-year growth in online music services.

• Adjusted net profit increased by 26% year-over-year.

• IFRS net profit rose by 33% to RMB1.8 billion, with non-IFRS net profit up 26% to RMB2 billion.

• Total revenue was RMB7.2 billion, a 2% decline year-over-year mainly due to decreases in social entertainment and other services, offset by strong growth in online music revenues.

• Music subscription revenues reached RMB3.7 billion, marking a 29% increase year-over-year.

Business Progress:

• Tencent Music continues to enrich its content ecosystem, enhancing partnerships with artists and labels such as Sodagreen and CJ ENM.

• Expanded innovative user engagement through features like 3D Avatar and virtual music events, boosting digital album sales.

• Hosted Tencent Music Entertainment Awards 2024 and other live concerts, significantly growing offline performance revenues.

• Introduced advanced sound technologies and enhanced SVIP membership benefits to improve user experience and retention.

Opportunities:

• The positive trajectory of online music subscriptions and ARPPU growth indicates potential for increased revenue and user engagement.

• Enhanced SVIP memberships and premium sound technology implementations offer growth opportunities in user loyalty and subscription revenue.

Risks:

• Social entertainment services witnessed a 43% decline in revenues, highlighting challenges from competition and macroeconomic factors.

• Dependence on the Chinese market for growth, with fluctuations potentially impacting advertising and sponsorship revenues.

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.