Tencent (0700) announced its Tencent music performance in the United States. As of the end of March, its first-quarter revenue rose 39.4% year-on-year to 5.74 billion yuan, with a net profit of 987 million yuan, up 17.4% year-on-year. According to non-IFRS, the diluted earnings per ADS were 0.72 yuan, which was higher than market expectations.
Tencent Music’s online music business paid subscribers increased by 27.4% to 28.4 million in the previous quarter, but the average monthly ARPU of each household fell by 1.2%; social entertainment business paying subscribers rose by 12.5% to 10.8 million, and ARPU rose by 28.1%.
With the online music service headed by “QQ Music”, the number of monthly active users was 654 million, up 4.6% year-on-year, the paying user ratio was 4.34%, and the ARPU was 8.3 yuan. Social entertainment services, including the “National K songs” service, had 225 million monthly active users, 4.8% of paying users, and ARPU increased to 127.5 yuan.