Tencent Music Entertainment Beats Revenue Estimates With Strong Streaming Growth

Tencent Music Entertainment (1698.HK) exceeded analysts' expectations for quarterly revenue, marking its second consecutive quarter of growth. The company's robust streaming demand helped it recover from a year-long slowdown.

For the three months ending in December, Tencent Music reported an 8.2% year-over-year revenue increase, reaching 7.46 billion yuan ($1.03 billion). This surpassed analysts' average estimate of 7.30 billion yuan, according to LSEG data.

Following the announcement, the company’s U.S.-listed shares rose 3% in premarket trading.

Tencent Music's premium Super VIP (SVIP) membership, which offers long-form audio content, online karaoke, and high-quality sound, continues to gain traction among users.

However, growth remains tempered by challenges in its social entertainment segment, which has been impacted by the removal of certain live-streaming features to comply with Beijing’s anti-gambling regulations. Revenue from the unit, which includes the karaoke app WeSing and live concert platform Kuwo Music, fell to 1.63 billion yuan in the fourth quarter, down from 1.87 billion yuan a year earlier.