Tencent Music Entertainment Shares Fall After 2Q Revenue Drop

By Michael Susin

Tencent Music Entertainment shares fell on Tuesday after the company reported a revenue drop in its social entertainment platform in the second quarter.

Shares were down 13% to $11.40. The stock is up more than 27% on the year

The Shenzhen-based company said net income for the second quarter rose to 1.68 billion Chinese Yuan ($234.1 million) from CNY1.30 billion in the same quarter a year ago.

Total revenues, however, fell 1.7% to CNY7.16 billion, mainly due to a decline in revenues from social entertainment services and others to CNY1.74 billion from CNY3.04 billion. The same segment saw a 45.8% drop in monthly average revenue per paying user to CNY73.2.

"The continued decrease was mainly the result of adjustments to certain live-streaming interactive functions and more stringent compliance procedures we started to implement in the second quarter of 2023, as well as increased competition from other platforms," it added.

Revenues from music subscriptions, however, rose nearly 30% to CNY3.74 billion.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

August 13, 2024 10:43 ET (14:43 GMT)

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