SHENZHEN, China, May 16, 2023
/PRNewswire/ -- Tencent Music
Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX:
1698), the leading online music and audio entertainment platform in
China, today announced its
unaudited financial results for the first quarter ended
March 31, 2023.
Financial Highlights
In the three months ended March 31,
2023:
- Total revenues were RMB7.00
billion (US$1.02 billion),
representing 5.4% year-over-year growth.
- Revenues from music subscriptions were RMB2.60 billion (US$378
million), representing 30.4% year-over-year growth. Paying
users increased by 17.7% year-over-year to 94.4 million. On a
sequential basis, the number of online music paying users grew by
5.9 million.
- Net profit attributable to equity holders of the Company
was RMB1.15 billion (US$167 million), representing 88.5%
year-over-year growth. Non-IFRS net profit attributable to
equity holders of the Company[1] was
RMB1.41 billion (US$205 million), representing 57.0%
year-over-year growth.
- Diluted earnings per ADS was RMB0.73 (US$0.11)
and the number of ADSs used in diluted earnings per ADS
computation was 1.58 billion.
- Total cash, cash equivalents and term deposits as
of March 31, 2023 were RMB28.5 billion (US$4.15
billion).
"We started 2023 with great momentum as our strategic emphasis
on quality growth propelled a strong increase in our online music
revenues. We are pleased to see that the revenue size of our online
music services has now caught up with social entertainment services
for the first time. This signifies that our long-term commitment to
developing a sustainable online music business model is bearing
fruit. Our total revenues experienced healthy growth in the first
quarter, while our focus on efficiency optimization also drove
robust net profit growth," said Mr. Cussion Pang, Executive
Chairman of TME. "We are glad to achieve a record-high online music
paying ratio and expand ARPPU for the fourth consecutive quarter.
The broad appeal of our innovative advertising formats and expanded
monetization toolbox have been driving our performance. During the
quarter, we deepened partnerships with top music labels and artists
to further enrich both our iconic music catalogues and vertical
content offerings. We continued to foster creativity and nurture
artists through a rich variety of support programs, stage
performances and monetization opportunities, all of which are
dedicated to amplifying the influence of musicians and their works.
Furthermore, to capitalize on the public's growing demand for
in-person activities, we kept exploring innovative means of
interaction and monetization, while broadening our presence in the
offline entertainment realm via TME Live, our online-merge-offline
performance brand. Looking ahead, we will continue to prioritize
high-quality growth and business development that create long-term
value for our stakeholders and promote the healthy, vibrant
advancement of the music industry."
"We take pride in fostering a community of passionate music
lovers on our platform. To better serve their evolving needs, we
further refined users' music consumption experience in the first
quarter by expanding our premium sound quality and effects to more
scenarios and providing more personalized listening experiences.
These efforts drove a continuous growth of average daily time spent
per daily active user," said Mr. Ross
Liang, CEO of TME. "Audio live streaming has become an
important growth driver for our ecosystem. We are leveraging our
differentiated content and interactive features to fuel its further
advancement, which not only enhances user experience but also
attracts more vibrant audio anchors. This, in turn, benefits our
musician ecosystem by incubating talented artists, showcasing their
skills and helping them reach a wider audience. In addition,
through ongoing exploration of large language models (LLMs), we
have invigorated our platform ecosystem with a broader range of
AI-generated content (AIGC) applications. This endeavour allows us
to improve musician's efficiency in the key steps of music
production as well as to provide users with a more dynamic and
interactive user experience. These innovations are designed to
further enrich our platform's content, creating tremendous
opportunities for us to meet users' diverse and nuanced music
tastes and social needs in new and exciting ways."
Financial Review for the First Quarter of
2023
Total revenues for the first quarter of 2023 were RMB7.00 billion (US$1.02
billion), representing an increase of 5.4% year-over-year.
Revenues from online music services increased by 33.8%
year-over-year to RMB3.50 billion
(US$510 million). Revenues from
social entertainment services and others decreased by 13.0%
year-over-year to RMB3.50 billion
(US$510 million). In the first
quarter, the revenue size of our online music services has caught
up with social entertainment services for the first time along
TME's growth trajectory.
Online Music Services
As we further enhanced our monetization capabilities, revenues
from online music services delivered robust growth of 33.8%
year-over-year to reach RMB3.50
billion (US$510 million) in
the first quarter of 2023. Revenues from music subscriptions
for the first quarter grew by 30.4% year-over-year to RMB2.60 billion (US$378
million), propelled by the rapid expansion of both online
music paying user base and ARPPU. Specifically, the number of
online music paying users increased by 17.7% year-over-year to 94.4
million, which took online music paying ratio to a record high at
15.9%; while ARPPU expanded to RMB9.2, marking its fourth consecutive quarter of
growth. The increases in both paying users and ARPPU were primarily
attributable to our optimized content operations, increased user
willingness to pay for premium features such as sound quality and
effects, and more effective promotions. In addition, our Internet
of Things ("IoT") service also delivered good results as more
customers started to adopt our service, which gives us more
monetization opportunities as we keep expanding use cases and
service offerings.
Revenues from online music services other than
subscriptions for the first quarter recorded robust
year-over-year growth. Advertising revenues achieved notable
growth year-over-year, primarily due to a lower revenue last year
caused by the COVID-19 impact, as well as increasing interest from
advertisers in our innovative advertising formats and an improved
macro environment. Advertising spend by advertisers in the
e-commerce, games, travel, and food and beverage verticals
increased year-over-year, while revenues from ad-supported mode
surged as more users adopted the model. In addition, during the
first quarter, we attracted many brand advertisers, such as
PepsiCo, YangYuanQing and JD.com to
sponsor TME Live events. We also launched artist merchandise
for well-known artists such as Allen
Ren, Lu Han and Justin Huang,[2] with items including
collection cards, action figures and T-shirts, among others. Our
long-form audio is gaining popularity with an increasing
number of trending releases, leading to healthy revenue growth on a year-over-year basis.
Social Entertainment Services and Others
Revenues from social entertainment services and others for the
first quarter of 2023 decreased by 13.0% year-over-year to
RMB3.50 billion (US$510 million). To adapt to the changing
environment, we focused on increasing our competitiveness through
ongoing product innovation and new initiatives in social
entertainment services, such as audio live streaming, real-time
interactive experiences and international expansion.
Revenues from audio live streaming in the first quarter
of 2023 increased year-over-year as we provided differentiated
content and interactive features. We also strove to build a growth
path for more live streaming performers, further tapping into their
potential, while strengthening their connection with users, and
thereby cultivating users' willingness to consume and pay for
content. In the first quarter, the number of performers in audio
live streaming continued to grow year-over-year and
quarter-over-quarter. For WeSing, based on our multi-person
singing and chat rooms in both video and audio settings, we
upgraded our chorus feature to support a chorus of 1,000 people,
further enriching our platform's chorus scenarios and immersive
experience while driving a year-over-year increase in our singing
rooms' penetration rate for the fifth quarter in a row. Revenues
from overseas business increased year-over-year in the first
quarter with our ongoing expansion through both organic growth and
M&A.
Costs, Expenses and Profitability
Cost of revenues for the first quarter of 2023 decreased by 2.0%
year-over-year to RMB4.69 billion
(US$683 million). The decline in
revenues from social entertainment services led to a decrease in
revenue sharing fees, which was the primary reason for the overall
decrease in cost of revenues on a year-over-year basis, partially
offset by the increase in content costs of royalties and higher
payment channel fees.
Gross margin for the first quarter of 2023 increased 5.1
percentage points to 33.1% from 28.0% in the same period of 2022,
primarily due to the strong growth of revenues from music
subscriptions and advertising services, and our effective control
and optimization of content costs, as well as improved operational
cost efficiency.
Total operating expenses for the first quarter of 2023 decreased
by 8.4% year-over-year to RMB1.23
billion (US$179 million).
Operating expenses as a percentage of total revenues decreased to
17.5% in the first quarter of 2023 from 20.2% in the same period of
2022.
- Selling and marketing expenses were RMB212 million (US$31
million), representing a year-over-year decrease of 35.8%.
This decrease was primarily due to effective control over marketing
expenses and optimization of our overall promotion strategies, as
we reduced spending on user acquisition and remained focused on
driving high-quality paying user
growth.
- General and administrative expenses were RMB1.02 billion (US$148
million), which was relatively stable compared with the same
period of 2022. We continued to closely manage employee-related
expenses by improving headcount efficiency as well as to invest in
research and development to further empower music-related content
creation, enhance production efficiency and improve sound quality
and effects.
Driven by effective cost controls and improved operating
efficiency, our operating profit grew to RMB1.38 billion (US$201
million) in the first quarter of 2023, representing an
increase of 84.4% year-over-year.
For the first quarter of 2023, net profit attributable to equity
holders of the Company was RMB1.15
billion (US$167 million), and
non-IFRS net profit attributable to equity holders of the Company
was RMB1.41 billion (US$205 million). Please refer to the section in
this press release titled "Non-IFRS Financial Measure" for
details.
Basic and diluted earnings per American Depositary Shares
("ADS") were RMB0.74 (US$0.11) and RMB0.73 (US$0.11),
respectively, for the first quarter of 2023, and non-IFRS basic and
diluted earnings per ADS were RMB0.90
(US$0.13) and RMB0.89 (US$0.13),
respectively. The Company had weighted averages of 1.56 billion
basic and 1.58 billion diluted ADSs outstanding, respectively. Each
ADS represents two of the Company's Class A ordinary shares.
Other Key Financial Information
As of March 31, 2023, the combined
balance of the Company's cash, cash equivalents and term deposits
amounted to RMB28.5 billion
(US$4.15 billion), compared with
RMB27.4 billion as of December 31, 2022. The increase was primarily
driven by cash flows generated from operations.
Operating Metrics
- TME's online music and social entertainment services key
operating metrics[*][3]
|
1Q23
|
1Q22
|
YoY %
|
MAU – online music
(million)
|
592
|
636
|
(6.9 %)
|
Mobile MAU – social
entertainment (million)
|
136
|
162
|
(16.0 %)
|
Paying users – online
music (million)
|
94.4
|
80.2
|
17.7 %
|
Paying users – social
entertainment (million)
|
7.1
|
8.3
|
(14.5 %)
|
Monthly ARPPU –
online music (RMB)
|
9.2
|
8.3
|
10.8 %
|
Monthly ARPPU –
social entertainment (RMB)
|
164.5
|
161.8
|
1.7 %
|
* Beginning in the first quarter of 2023, "online music MAUs"
includes unique mobile and certain IoT devices. Accordingly,
comparative figures were updated to conform to the current
presentation. "Online music MAUs" for any given period (i) refers
to the monthly average of the sum of the MAUs for that period; and
(ii) includes QQ Music, Kugou Music, Kuwo Music and other music
products, through which such product is accessed at least once in
that month; duplicate access of different services by the same
device is not eliminated from the calculation.
|
Business Review
Deepened partnerships with popular music labels and
artists to enhance our music offerings:
- Established strategic collaboration with Rock Records to
provide users with iconic Chinese songs and original soundtracks of
popular TV dramas, including the works of Chenyue Chang,
Emil Chau, Jonathan Lee, Wu
Bai and Mayday. We also strengthened strategic partnerships
with Ronghao Li and Fenghua Qiushi,
whose managed artists include Lu Han
and Black Panthers, as well as with HYBE from South Korea with artists such as BTS and
SEVENTEEN on its roster.
- Provided users with privileged access to popular artists'
content. Featuring a seven-day head-start period, our partnership
with JJ Lin for his new digital album "Happily, Painfully After"
was well-received by users, with this album breaking his previous
sales record in terms of gross merchandise value on our platform.
We also collaborated with well-known artists like KUN and Oaeen for
head-start benefits on new song releases, together with merchandise
sales, online and offline performances, and artist-fan interaction
events.
- To cater to the increasing demand for rap music among younger
audiences, we strengthened music verticals and made solid progress
in enriching our rap offerings by adding a number of new rap songs
from heavyweight rappers such as Masiwei.
Leveraged a wide range of services to boost the exposure
and influence of talented artists and their original musical
works:
- Unveiled a new initiative on our Tencent Musician Platform, the "Emerging Force
Program." The program offers a wide range of artist services,
including traffic support, revenue sharing and on- and off-line
performance opportunities. Our goal is to increase the exposure and
popularity of quality songs, while amplifying artists' influence,
and thereby improving the vitality of the musician ecosystem on our
platform. As of the first quarter, we had assisted 260
up-and-coming musicians in reaching their first million streams and
helped multiple aspiring artists make their debut performances on
stage. Notably, after joining the program, singer-songwriter Leezi
and Slow-mo experienced a surge in followers and streams.
- Teamed up with Billboard China to hold our first original music
contest, "THE ONE," featuring a distinguished panel of singers and
songwriters in both China and
abroad, including Greyson Chance,
Lenka, MIKA and TIA RAY. Our mission
is to discover emerging artists with the ability to produce
high-quality original Chinese music and expand their global
reach.
- Capitalized on our comprehensive content production strength to
expand the IP value of the entertainment industry, creating musical
works for numerous iconic films, games, animations, and other
media. In the first quarter, we cooperated with the broader
Tencent ecosystem, producing singles
for 11 well-known games and four animations. Notable examples
included "Praying for the Mountain and the Sea" for Honour of Kings
and "Light of Dawn" for Dawn Awakening. We also co-produced
Zhou Shen's Chinese cover of the
theme song from Suzume which raked in over 100 million streams
within three weeks of its release.
- As the performance market recovered, TME Live seized
opportunities to provide users with exceptional audio-visual
experiences anytime and anywhere, while exploring innovative ways
to monetize and interact with users. In the first quarter, we
hosted a total of 29 online and offline concerts, among which the
online concerts by KUN and Richie Jen received widespread user
acclaim and attracted almost 70 million unique visitors in the
Tencent ecosystem. We provided fans
with the option to purchase custom merchandise while enjoying the
shows. We also organized offline tours in cities such as
Shenzhen, Changsha and Hangzhou for musicians such as Coola, Kafe.Hu,
Pharaoh, Switch GodLes and the rock and roll band WhitePaper,
allowing them to interact with fans up close.
Strengthened product features to more
efficiently satisfy users' personalized needs:
- Brought premium sound quality and effects to cover a wider
range of scenarios. During the quarter, we introduced a customized
sound effect for Teens in Times' (TNT) album, Utopia, which
highlights vocal details and instrumental layers to create an air
of a live performance. A total of 2.3 million users have utilized
this sound effect across 170 million streams. In addition, we
extended our premium sound quality to in-car use cases. One example
is QQ Music's Galaxy Sound Effect which maximizes the performance
of in-car audio systems.
- Consistently improved our algorithms and optimized products to
advance recommendation efficiency, gain deeper insights into
content and user behaviors, and create a more personalized
listening experience. In the first quarter, QQ Music and Kugou
Music's recommendation streaming volume and time spent per user
both increased year-over-year and quarter-over-quarter, taking the
proportion of recommended streaming to a new high on our
platform.
- Created more differentiated audio live streaming content by
leveraging the exceptional talent of our performers, with focus on
categories such as music, emotional healing and talk shows. Our
vibrant audio anchor ecosystem also benefits our musician community
by providing a platform for talented artists to showcase their
skills and reach a wider audience. Moreover, QQ Music live
streaming added new interactive features to serve as icebreakers
between performers and users, resulting in a year-over-year and
quarter-over-quarter increase in daily time spent per user.
- AIGC tools empowered us to produce content more efficiently and
create more engaging experiences for users. The launch of "TME
Studio" and "Vocal Producer" feature not only enhances musicians'
creation efficiency in lyrics writing, composition, and music
content analysis and editing, but also facilitates the generation
of high-quality content by seamlessly blending users' original
voice into different songs. In the first quarter, we introduced our
first AI music companion, Xiaoqin, who hosted a live streaming show
of singing and dancing with features of immersive entertainment
experiences. In addition, users were able to engage with performers
through AI-generated virtual gifts and personalized gameplays.
Social Responsibilities
We remain committed to fulfilling our social responsibilities.
We launched a caring program, "If Music Has a Shape," to raise
awareness about autism. The program invited more than 50 groups of
singers and musicians from China
and abroad to perform in our program and share their love,
including Joker Xue, Sean Xiao and
TIA RAY. We also debuted the caring
through music theme song "Secrets Hidden in the Stars," sung by
LUCY, our first hyper-real virtual pop idol.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB6.8676 to US$1.00, the noon buying rate in effect on
March 31, 2023, in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred could be
converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
Non-IFRS Financial Measure
The Company uses non-IFRS net profit for the period, which is a
non-IFRS financial measure, in evaluating its operating results and
for financial and operational decision-making purposes. TME
believes that non-IFRS net profit helps identify underlying trends
in the Company's business that could otherwise be distorted by the
effect of certain expenses that the Company includes in its profit
for the period. TME believes that non-IFRS net profit for the
period provides useful information about its results of operations,
enhances the overall understanding of its past performance and
future prospects and allows for greater visibility with respect to
key metrics used by its management in its financial and operational
decision-making.
Non-IFRS net profit for the period should not be considered in
isolation or construed as an alternative to operating profit, net
profit for the period or any other measure of performance or as an
indicator of its operating performance. Investors are encouraged to
review non-IFRS net profit for the period and the reconciliation to
its most directly comparable IFRS measure. Non-IFRS net profit for
the period presented here may not be comparable to similarly titled
measures presented by other companies. Other companies may
calculate similarly titled measures differently, limiting their
usefulness as comparative measures to the Company's data. TME
encourages investors and others to review its financial information
in its entirety and not rely on a single financial measure.
Non-IFRS net profit for the period represents profit for the
period excluding amortization of intangible and other assets
arising from acquisitions, share-based compensation expenses, net
losses/gains from investments and income tax effects.
Please see the "Unaudited Non-IFRS Financial Measure" included
in this press release for a full reconciliation of non-IFRS net
profit for the period to its net profit for the period.
[1] Non-IFRS net profit
and non-IFRS net profit attributable to equity holders of the
Company were arrived at after excluding the combined effect of
amortization of intangible assets and other assets arising from
acquisitions, share-based compensation expenses, net losses/gains
from investments, and income tax effects.
|
[2] Names of musicians
and bands contained in this press release are sorted according to
the following rules: (i) grouped by musicians and bands; and (ii)
in alphabetical order by given names.
|
[3] Beginning in the
first quarter of 2023, "online music MAUs" includes unique mobile
and certain IoT devices. Accordingly, comparative figures were
updated to conform to the current presentation. "Online music MAUs"
for any given period (i) refers to the monthly average of the sum
of the MAUs for that period; and (ii) includes QQ Music, Kugou
Music, Kuwo Music and other music products, through which such
product is accessed at least once in that month; duplicate access
of different services by the same device is not eliminated from the
calculation.
|
About Tencent Music
Entertainment
Tencent Music Entertainment Group
(NYSE: TME and HKEX: 1698) is the leading online music and audio
entertainment platform in China,
operating the country's highly popular and innovative music apps:
QQ Music, Kugou Music, Kuwo Music and WeSing. TME's mission is to
create endless possibilities with music and technology. TME's
platform comprises online music, online audio, online karaoke,
music-centric live streaming and online concert services, enabling
music fans to discover, listen, sing, watch, perform and socialize
around music. For more information, please visit
ir.tencentmusic.com.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. Further information regarding these and other
risks, uncertainties or factors is included in the Company's
filings with the SEC and the HKEX. All information provided in this
press release is as of the date of this press release, and the
Company does not undertake any duty to update such information,
except as required under applicable law.
Investor Relations Contact
Tencent Music Entertainment
Group
ir@tencentmusic.com
+86 (755) 8601-3388 ext. 818415
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2023
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
(in millions, except
per share data)
|
Revenues
|
|
|
|
|
|
|
|
Online music
services
|
|
|
2,616
|
|
3,501
|
|
510
|
Social entertainment
services and others
|
|
|
4,028
|
|
3,503
|
|
510
|
|
|
|
6,644
|
|
7,004
|
|
1,020
|
Cost of
revenues
|
|
|
(4,784)
|
|
(4,689)
|
|
(683)
|
Gross
profit
|
|
|
1,860
|
|
2,315
|
|
337
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(330)
|
|
(212)
|
|
(31)
|
General and
administrative expenses
|
|
|
(1,012)
|
|
(1,017)
|
|
(148)
|
Total operating
expenses
|
|
|
(1,342)
|
|
(1,229)
|
|
(179)
|
Interest
income
|
|
|
150
|
|
237
|
|
35
|
Other gains,
net
|
|
|
81
|
|
58
|
|
8
|
Operating
profit
|
|
|
749
|
|
1,381
|
|
201
|
|
|
|
|
|
|
|
|
Share of net gains of
investments
accounted for using equity method
|
|
|
20
|
|
20
|
|
3
|
Finance cost
|
|
|
(30)
|
|
(34)
|
|
(5)
|
Profit before income
tax
|
|
|
739
|
|
1,367
|
|
199
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(90)
|
|
(167)
|
|
(24)
|
Profit for the
period
|
|
|
649
|
|
1,200
|
|
175
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
609
|
|
1,148
|
|
167
|
Non-controlling
interests
|
|
|
40
|
|
52
|
|
8
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
Basic
|
|
|
0.19
|
|
0.37
|
|
0.05
|
Diluted
|
|
|
0.18
|
|
0.36
|
|
0.05
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares
equal to 1 ADS)
|
|
|
|
|
|
|
|
Basic
|
|
|
0.37
|
|
0.74
|
|
0.11
|
Diluted
|
|
|
0.37
|
|
0.73
|
|
0.11
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
Basic
|
|
|
3,273,281,390
|
|
3,120,690,738
|
|
3,120,690,738
|
Diluted
|
|
|
3,302,130,101
|
|
3,165,297,869
|
|
3,165,297,869
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
Basic
|
|
|
1,636,640,695
|
|
1,560,345,369
|
|
1,560,345,369
|
Diluted
|
|
|
1,651,065,051
|
|
1,582,648,934
|
|
1,582,648,934
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2022
|
|
2023
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
(in millions, except
per share data)
|
|
Profit for the
period
|
|
|
649
|
|
1,200
|
|
175
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising
from acquisitions*
|
|
|
121
|
|
117
|
|
17
|
|
Share-based
compensation
|
|
|
204
|
|
202
|
|
29
|
|
Gains from
investments**
|
|
|
(2)
|
|
(17)
|
|
(2)
|
|
Income tax
effects***
|
|
|
(33)
|
|
(39)
|
|
(6)
|
|
Non-IFRS Net
Profit
|
|
|
939
|
|
1,463
|
|
213
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
899
|
|
1,411
|
|
205
|
|
Non-controlling
interests
|
|
|
40
|
|
52
|
|
8
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.27
|
|
0.45
|
|
0.07
|
|
Diluted
|
|
|
0.27
|
|
0.45
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.55
|
|
0.90
|
|
0.13
|
|
Diluted
|
|
|
0.54
|
|
0.89
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,273,281,390
|
|
3,120,690,738
|
|
3,120,690,738
|
|
Diluted
|
|
|
3,302,130,101
|
|
3,165,297,869
|
|
3,165,297,869
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,636,640,695
|
|
1,560,345,369
|
|
1,560,345,369
|
|
Diluted
|
|
|
1,651,065,051
|
|
1,582,648,934
|
|
1,582,648,934
|
|
|
|
|
|
|
|
|
|
|
* Represents the
amortization of identifiable assets, including intangible assets
and prepayments for music content,
resulting from acquisitions
|
** Including the net
losses/gains on deemed disposals/disposals of investments, fair
value changes arising from
investments, impairment provision of investments and other expenses
in relation to equity transactions of investments
|
*** Represents the
income tax effects of Non-IFRS adjustments
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED BALANCE
SHEET
|
|
|
|
|
|
|
|
|
|
As at December 31,
2022
|
|
As at March 31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
323
|
|
340
|
|
50
|
Land use
rights
|
|
2,480
|
|
2,462
|
|
358
|
Right-of-use
assets
|
|
398
|
|
362
|
|
53
|
Intangible
assets
|
|
2,368
|
|
2,289
|
|
333
|
Goodwill
|
|
19,493
|
|
19,538
|
|
2,845
|
Investments accounted
for using equity method
|
|
4,330
|
|
4,291
|
|
625
|
Financial assets at
fair value through other comprehensive income
|
3,168
|
|
4,694
|
|
683
|
Other
investments
|
|
304
|
|
301
|
|
44
|
Prepayments, deposits
and other assets
|
|
709
|
|
599
|
|
87
|
Deferred tax
assets
|
|
347
|
|
352
|
|
51
|
Term
deposits
|
|
6,530
|
|
8,040
|
|
1,171
|
|
|
40,450
|
|
43,268
|
|
6,300
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
14
|
|
12
|
|
2
|
Accounts
receivable
|
|
2,670
|
|
2,722
|
|
396
|
Prepayments, deposits
and other assets
|
|
2,958
|
|
2,579
|
|
376
|
Other
investments
|
|
37
|
|
37
|
|
5
|
Term
deposits
|
|
11,291
|
|
8,325
|
|
1,212
|
Restricted
Cash
|
|
34
|
|
41
|
|
6
|
Cash and cash
equivalents
|
|
9,555
|
|
12,129
|
|
1,766
|
|
|
26,559
|
|
25,845
|
|
3,763
|
|
|
|
|
|
|
|
Total
assets
|
|
67,009
|
|
69,113
|
|
10,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity attributable
to equity holders of the
Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in
capital
|
|
36,456
|
|
36,447
|
|
5,307
|
Shares held for share
award schemes
|
|
(202)
|
|
(227)
|
|
(33)
|
Treasury
shares
|
|
(6,349)
|
|
(6,088)
|
|
(886)
|
Other
reserves
|
|
6,140
|
|
7,646
|
|
1,113
|
Retained
earnings
|
|
12,052
|
|
13,200
|
|
1,922
|
|
|
48,099
|
|
50,980
|
|
7,423
|
Non-controlling
interests
|
|
1,028
|
|
1,083
|
|
158
|
|
|
|
|
|
|
|
Total
equity
|
|
49,127
|
|
52,063
|
|
7,581
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payables
|
|
5,536
|
|
5,463
|
|
795
|
Other payables and
other liabilities
|
|
6
|
|
1
|
|
-
|
Deferred tax
liabilities
|
|
211
|
|
193
|
|
28
|
Lease
liabilities
|
|
306
|
|
284
|
|
41
|
Deferred
revenue
|
|
106
|
|
129
|
|
19
|
|
|
6,165
|
|
6,070
|
|
884
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
4,998
|
|
5,320
|
|
775
|
Other payables and
other liabilities
|
|
4,022
|
|
2,797
|
|
407
|
Current tax
liabilities
|
|
404
|
|
414
|
|
60
|
Lease
liabilities
|
|
123
|
|
115
|
|
17
|
Deferred
revenue
|
|
2,170
|
|
2,334
|
|
340
|
|
|
11,717
|
|
10,980
|
|
1,599
|
|
|
|
|
|
|
|
Total
liabilities
|
|
17,882
|
|
17,050
|
|
2,483
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
67,009
|
|
69,113
|
|
10,064
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
2,494
|
|
1,852
|
|
270
|
Net cash (used
in)/provided by investing activities
|
|
(329)
|
|
811
|
|
118
|
Net cash used in
financing activities
|
|
(395)
|
|
(80)
|
|
(12)
|
Net increase in cash
and cash equivalents
|
|
1,770
|
|
2,583
|
|
376
|
Cash and cash
equivalents at beginning of the period
|
|
6,591
|
|
9,555
|
|
1,391
|
Exchange differences on
cash and cash equivalents
|
|
(8)
|
|
(9)
|
|
(1)
|
Cash and cash
equivalents at end of the period
|
|
8,353
|
|
12,129
|
|
1,766
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-first-quarter-2023-unaudited-financial-results-301825341.html
SOURCE Tencent Music Entertainment
Group