Shares of Tencent Music Entertainment Group (TME) jumped 5.67% in pre-market trading on Tuesday following the release of its fourth quarter and full-year 2024 financial results. The company reported better-than-expected earnings and revenue growth, driven by strong performance in its online music business.
For the fourth quarter of 2024, TME's total revenues increased by 8.2% year-over-year to RMB7.46 billion (US$1.02 billion). The growth was primarily attributed to a 16.1% increase in revenues from online music services, which reached RMB5.83 billion (US$799 million). Music subscription revenues, a key metric for the company, grew by 18.0% to RMB4.03 billion (US$552 million), with the number of paying users rising 13.4% to 121.0 million.
The company's net profit for Q4 2024 surged by 47.3% year-over-year to RMB2.08 billion (US$284 million), while non-IFRS net profit increased by 43.0% to RMB2.40 billion (US$329 million). TME also reported strong full-year 2024 results, with total revenues up 2.3% to RMB28.40 billion (US$3.89 billion) and net profit growing 36.2% to RMB7.11 billion (US$974 million). The company's board of directors approved an annual cash dividend of approximately US$273 million and authorized a new Share Repurchase Program of up to US$1 billion, further boosting investor confidence.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.