- Fourth quarter music paying users up 20.6% with monthly
ARPPU increased by 20.2% year-over-year
- Net adds of 18.2 million music paying users recorded in
2023, up from 12.3 million in 2022
SHENZHEN, China, March 19, 2024 /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 fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights
- Total revenues were RMB6.89
billion (US$971 million),
representing a 7.2% year-over-year decrease, mainly due to the
decline in revenues from social entertainment services and others.
Growth in revenues from online music services partially mitigated
the decline in revenues from social entertainment services and
others.
- Revenues from music subscriptions were RMB3.42 billion (US$481
million), representing 45.3% year-over-year growth. The
number of paying users increased by 20.6% year-over-year to
106.7 million, up 3.7 million from the third quarter of 2023.
- Net profit was RMB1.41
billion (US$198 million),
representing 16.9% year-over-year growth. Net profit
attributable to equity holders of the Company was RMB1.31 billion (US$184
million), representing 13.5% year-over-year growth.
Non-IFRS net profit[1]was RMB1.68
billion (US$236 million),
representing 12.5% year-over-year growth. Non-IFRS net profit
attributable to equity holders of the Company[1] was RMB1.58
billion (US$222 million),
representing 9.5% year-over-year growth.
- Diluted earnings per ADS was RMB0.83 (US$0.12),
up from RMB0.72 in the same period of
2022.
- Total cash, cash equivalents and term
deposits as of December 31,
2023 were RMB32.22 billion
(US$4.54 billion).
Full Year 2023 Financial Highlights
- Total revenues were RMB27.75
billion (US$3.91 billion),
representing a 2.1% year-over-year decrease.
- Revenues from music subscriptions were RMB12.10 billion (US$1.70
billion), representing 39.1% year-over-year growth.
- Net profit was RMB5.22
billion (US$735 million),
representing 36.0% year-over-year growth. Net profit
attributable to equity holders of the Company was RMB4.92 billion (US$693
million), representing 33.8% year-over-year growth.
Non-IFRS net profit[1] was RMB6.22
billion (US$876 million),
representing 26.8% year-over-year growth. Non-IFRS net profit
attributable to equity holders of the Company[1] was RMB5.92 billion (US$834
million), representing 24.8% year-over-year growth.
Mr. Cussion Pang, Executive Chairman of TME, commented, "2023
marked a pivotal transition at TME. As we continue to shape and
propel the music industry's robust development, we are excited
about its vibrant growth potential for years to come. The fourth
quarter recorded accelerated year-over-year growth in music
subscription revenue, anchored by consistent increases in
subscribers and ARPPU. Online music services' strong performance
mitigated headwinds from social entertainment services and
contributed to expanded quarterly net profits. Looking ahead, we
are well positioned to capture more multi-faceted opportunities,
underpinned by our content and platform dual engines and supported
by the online music business' relatively counter-cyclical
nature."
Mr. Ross Liang, CEO of TME,
continued, "Our laser focus on execution resulted in a year of
efficiency. Deeper insights into users and content not only
enhanced our operational efficiency but also allowed us to make
music journeys more personalized for our users. Expanded user
privileges, together with AI-empowered products and tools,
contributed positively to subscriber conversion and retention. For
2024, we remain dedicated to delivering a more compelling user
experience and easier access to music across a broader range of use
cases."
Fourth Quarter 2023 Operational Highlights
|
4Q23
|
4Q22
|
YoY %
|
MAUs – online music
(million)
|
576
|
601
|
(4.2 %)
|
Mobile MAUs – social
entertainment (million)
|
104
|
146
|
(28.8 %)
|
Paying users – online
music (million)
|
106.7
|
88.5
|
20.6 %
|
Paying users – social
entertainment (million)
|
8.0
|
7.6
|
5.3 %
|
Monthly ARPPU – online
music (RMB)
|
10.7
|
8.9
|
20.2 %
|
Monthly ARPPU – social
entertainment (RMB)
|
78.0
|
169.6
|
(54.0 %)
|
Robust online music growth underpinned by our content
leadership, with expansive and differentiated content
offerings.
- Continued to form extensive partnerships with record labels,
strengthening our content offering with over 200 million music and
audio tracks by the end of 2023. For example, we renewed multi-year
strategic cooperation with Universal Music Group to provide users
with ongoing access to its world-class music catalog with expanded
privileges.
- Strengthened content appeal across pop, rock and Chinese
Ancient Style music genres, crucial in attracting and retaining
young user demographics.
- Differentiated content offerings through in-house and
collaborative creation gained further popularity among users as
reflected by: 1) Enriched mid- to long-tail content with over 3
million songs in various genres published by over 480,000 indie
musicians through Tencent Musician
Platform by the end of 2023. 2) Our self- and co-produced content
continued to grow from strength to strength. For example, we had 10
songs showcased during the China Media Group 2024 Spring Festival
Gala, generating massive social buzz and greatly boosting user
engagement on our platform; our self-produced song She, Bathing
in the Light was one standout.
- Capitalized on rising live music opportunities by hosting a
growing number of offline music events in multi-faceted performance
formats in 2023.
Strengthened platform value proposition and elevated user
experiences through product and technology innovation.
- Expanded privileges and improved multi-device experience to
enhance music journeys by: 1) Amassing China's largest Dolby Atmos
music library. 2) Introducing more personalized players and new
skins within our Apps. 3) Extending car model coverage with
upgraded in-car music experience.
- The power of our technology infrastructure, bolstered by our
in-depth understanding of users and content, further improved
content distribution and discovery. More accurate recommendations
led to more content consumption, resulting in enhanced user
conversion and retention.
AIGC application enhanced user experience and fostered
artists' music creation.
- Integrated Large Language Models ("LLMs") into music streaming,
making music discovery increasingly intelligent. For example, we
upgraded our virtual DJ feature to unveil more songs for users.
- Introduced Venus' AI composition tool to support artists' music
creation through their original text prompts and rhythm clips.
Fourth Quarter 2023 Financial Review
Total revenues decreased by RMB532
million, or 7.2%, to RMB6.89
billion (US$971 million) from
RMB7.43 billion in the same period of
2022.
- Revenues from online music services delivered a strong
year-over-year increase of 41.1% to RMB5.02
billion (US$707 million). The
increase was driven by strong growth in music subscription
revenues, supplemented by growth in revenues from advertising
services and revenues from sales of artist-related merchandise.
Revenues from music subscriptions were RMB3.42 billion (US$481
million), representing 45.3% year-over-year growth compared
with RMB2.35 billion in the same
period of 2022. This rapid growth was driven by further expansion
in the online music paying user base and ARPPU. Specifically, the
number of online music paying users increased by 20.6%
year-over-year to 106.7 million, while monthly ARPPU expanded to
RMB10.7, marking its seventh
consecutive quarter of growth and another record-high amount. The
increases in both the number of paying users and ARPPU were
primarily attributable to increased user willingness to pay, more
appealing member privileges, interactive product features, and
attractive music content. The year-over-year increase in
revenues from advertising was primarily because we provided a more
diversified product portfolio and innovative ad formats, which were
well-received by advertisers.
- Revenues from social entertainment services and
others decreased by 51.6% to RMB1.87 billion (US$264
million) from RMB3.87 billion
in the same period of 2022. The decrease was mainly caused by
the adjustments to certain live-streaming interactive functions and
more stringent compliance procedures as we implemented several
service enhancement and risk control measures.
Cost of revenues decreased by 14.6 % year-over-year to
RMB4.25 billion (US$599 million), mainly due to decreased revenues
from social entertainment services leading to lower revenue sharing
fees, partially offset by the increase in content costs of
royalties and advertising agency fees.
Gross margin increased by 5.3 percentage points to 38.3%
from 33.0% in the same period of 2022, primarily due to the
strong growth of revenues from music subscriptions and advertising
services, and the ramp-up of our own content.
Total operating expenses decreased by 7.0% year-over-year
to RMB1.27 billion (US$178 million). Operating expenses as a
percentage of total revenues were 18.4% and 18.3% for the period of
2023 and 2022, respectively.
- Selling and marketing expenses were RMB255 million (US$36
million), representing a year-over-year decrease of 4.1%,
mainly due to reduced promotional expenses for social entertainment
services, partially offset by increased spending on content
promotion.
- General and administrative expenses were RMB1.01 billion (US$142
million), representing a year-over-year decrease of 7.7%.
This decrease was primarily due to reduced employee-related
expenses.
Driven by improved operating efficiency and effective cost
controls, our operating profit grew to RMB1.71 billion (US$241
million) in the fourth quarter of 2023, representing an
increase of 23.5% year-over-year.
Effective tax rate for the fourth quarter of 2023 was 17.3%
compared to 12.2% in the same period of 2022. The increase in
effective tax rate was mainly driven by the accrual of withholding
income tax in the fourth quarter of 2023.
For the fourth quarter of 2023, net profit was
RMB1.41 billion (US$198 million) and net profit attributable to
equity holders of the Company was RMB1.31 billion (US$184
million). Non-IFRS net profit was RMB1.68 billion (US$236
million) and non-IFRS net profit attributable to equity
holders of the Company was RMB1.58
billion (US$222 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") for the fourth quarter of 2023 were RMB0.84 (US$0.12)
and RMB0.83 (US$0.12), respectively; non-IFRS basic and
diluted earnings per ADS were RMB1.02 (US$0.14)
and RMB1.00 (US$0.14), respectively. The Company had weighted
averages of 1.55 billion basic and 1.57 billion diluted ADSs
outstanding, respectively. Each ADS represents two of the Company's
Class A ordinary shares.
As of December 31, 2023, the
combined balance of the Company's cash, cash equivalents and
term deposits amounted to RMB32.22
billion (US$4.54 billion),
compared with RMB30.96 billion as of
September 30, 2023.
Full Year 2023 Financial Review
Total revenues decreased by RMB587
million, or 2.1%, to RMB27.75
billion (US$3.91 billion) from
RMB28.34 billion in 2022.
- Revenues from online music services delivered a strong
year-over-year increase of 38.8% to RMB17.33
billion (US$2.44 billion). The
increase was driven by strong growth in music subscription revenues
and revenues from advertising services, supplemented by growth in
sales of artist-related merchandise. Revenues from music
subscriptions were RMB12.10 billion
(US$1.70 billion), representing 39.1%
year-over-year growth compared with RMB8.70
billion in 2022. This rapid growth was driven by further
expansion in the online music paying user base and ARPPU.
Specifically, the number of online music paying users increased by
19.8% year-over-year to 100.9 million, while monthly ARPPU expanded
to RMB10.0. The increases in both the
number of paying users and ARPPU were primarily attributable to
increased user willingness to pay, more appealing member
privileges, interactive product features, and attractive music
content. The year-over-year increase in revenues from
advertising was primarily because we provided a more diversified
product portfolio and innovative ad formats, which were
well-received by advertisers.
- Revenues from social entertainment services and others
decreased by 34.2% to RMB10.43
billion (US$1.47 billion) from
RMB15.86 billion in 2022. The
decrease was mainly caused by the adjustments to certain
live-streaming interactive functions and more stringent compliance
procedures as we implemented several service enhancement and
risk control measures.
Cost of revenues decreased by 8.2% year-over-year to
RMB17.96 billion (US$2.53 billion). The decrease was mainly due to
decreased revenues from social entertainment services leading to
lower revenue sharing fees, partially offset by the increase in
content costs of royalties, advertising agency fees and payment
channel fees.
Gross margin increased by 4.3 percentage points to 35.3%
from 31.0% in 2022, primarily due to the strong growth of
revenues from music subscriptions and advertising services, and the
ramp-up of our own content.
Total operating expenses decreased by 9.7% year-over-year
to RMB5.02 billion (US$707 million). Operating expenses as a
percentage of total revenues decreased to 18.1% from 19.6% in
2022.
- Selling and marketing expenses were RMB897 million (US$126
million), representing a year-over-year decrease of 21.6%,
mainly due to reduced promotional expenses for social entertainment
services, partially offset by increased spending on content
promotion.
- General and administrative expenses were RMB4.12 billion (US$580
million), representing a year-over-year decrease of 6.6%.
This decrease was primarily due to reduced employee-related
expenses and the expenses related to the Hong Kong secondary listing incurred in
2022.
Driven by improved operating efficiency and effective cost
controls, our operating profit grew to RMB6.06 billion (US$853
million) for the full year of 2023, representing an increase
of 36.4% year-over-year.
For the full year of 2023, net profit was RMB5.22 billion (US$735
million) and net profit attributable to equity holders of
the Company was RMB4.92 billion
(US$693 million). Non-IFRS net
profit was RMB6.22 billion
(US$876 million) and non-IFRS net
profit attributable to equity holders of the Company was
RMB5.92 billion (US$834 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") for the full year of 2023 were RMB3.15 (US$0.44)
and RMB3.11 (US$0.44), respectively; non-IFRS basic and
diluted earnings per ADS were RMB3.79 (US$0.53)
and RMB3.74 (US$0.53), respectively. The Company had weighted
averages of 1.56 billion basic and 1.58 billion diluted ADSs
outstanding, respectively.
Share Repurchase Program
Under the US$500 million Share Repurchase Program
announced on March 21, 2023, as of December 31, 2023, we
had repurchased 25.3 million ADSs from the open market with cash
for a total consideration of US$174.5
million.
Social Responsibilities
In the fourth quarter, we collaborated with local governments
and conducted a series of music events to promote cultural and
economic development in ethnic minority regions. For example, we
partnered with Tencent Charity to
organize the 2023 Shenzhen-Linzhi Music Festival, leveraging
offline music performances to help rejuvenate the rural economy
with increased tourism. These initiatives further expanded music's
positive impact across geographies and industries, maximizing its
social value and potential.
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 RMB7.0999 to US$1.00, the noon buying rate in effect on
December 29, 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 business acquisitions or combinations, share-based
compensation expenses, net losses/gains from investments and
related 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 business acquisitions or combinations, share-based
compensation expenses, net losses/gains from investments, and
related income tax effects.
|
[2]
Starting from the first quarter of 2023, online music MAUs include
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
December 31
|
|
Year Ended December
31
|
|
|
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
(in millions, except
per share data)
|
|
(in millions, except
per share data)
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online music
services
|
|
|
3,559
|
|
5,022
|
|
707
|
|
12,483
|
|
17,325
|
|
2,440
|
|
|
Social entertainment
services and others
|
|
|
3,866
|
|
1,871
|
|
264
|
|
15,856
|
|
10,427
|
|
1,469
|
|
|
|
|
|
7,425
|
|
6,893
|
|
971
|
|
28,339
|
|
27,752
|
|
3,909
|
|
|
Cost of
revenues
|
|
|
(4,978)
|
|
(4,252)
|
|
(599)
|
|
(19,566)
|
|
(17,957)
|
|
(2,529)
|
|
|
Gross
profit
|
|
|
2,447
|
|
2,641
|
|
372
|
|
8,773
|
|
9,795
|
|
1,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(266)
|
|
(255)
|
|
(36)
|
|
(1,144)
|
|
(897)
|
|
(126)
|
|
|
General and
administrative expenses
|
|
|
(1,095)
|
|
(1,011)
|
|
(142)
|
|
(4,413)
|
|
(4,121)
|
|
(580)
|
|
|
Total operating
expenses
|
|
|
(1,361)
|
|
(1,266)
|
|
(178)
|
|
(5,557)
|
|
(5,018)
|
|
(707)
|
|
|
Interest
income
|
|
|
224
|
|
277
|
|
39
|
|
711
|
|
1,052
|
|
148
|
|
|
Other gains,
net
|
|
|
78
|
|
62
|
|
9
|
|
516
|
|
230
|
|
32
|
|
|
Operating
profit
|
|
|
1,388
|
|
1,714
|
|
241
|
|
4,443
|
|
6,059
|
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net profit of
investments accounted for
using equity method
|
|
|
16
|
|
20
|
|
3
|
|
38
|
|
127
|
|
18
|
|
|
Finance cost
|
|
|
(31)
|
|
(30)
|
|
(4)
|
|
(108)
|
|
(141)
|
|
(20)
|
|
|
Profit before income
tax
|
|
|
1,373
|
|
1,704
|
|
240
|
|
4,373
|
|
6,045
|
|
851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(168)
|
|
(295)
|
|
(42)
|
|
(534)
|
|
(825)
|
|
(116)
|
|
|
Profit for the
period/year
|
|
|
1,205
|
|
1,409
|
|
198
|
|
3,839
|
|
5,220
|
|
735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,151
|
|
1,306
|
|
184
|
|
3,677
|
|
4,920
|
|
693
|
|
|
Non-controlling
interests
|
|
|
54
|
|
103
|
|
15
|
|
162
|
|
300
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.37
|
|
0.42
|
|
0.06
|
|
1.15
|
|
1.58
|
|
0.22
|
|
|
Diluted
|
|
|
0.36
|
|
0.42
|
|
0.06
|
|
1.14
|
|
1.55
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.73
|
|
0.84
|
|
0.12
|
|
2.30
|
|
3.15
|
|
0.44
|
|
|
Diluted
|
|
|
0.72
|
|
0.83
|
|
0.12
|
|
2.27
|
|
3.11
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and Class
B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,142,973,505
|
|
3,103,386,279
|
|
3,103,386,279
|
|
3,203,995,973
|
|
3,121,653,686
|
|
3,121,653,686
|
|
|
Diluted
|
|
|
3,175,415,350
|
|
3,145,485,054
|
|
3,145,485,054
|
|
3,234,507,356
|
|
3,168,386,031
|
|
3,168,386,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,571,486,752
|
|
1,551,693,140
|
|
1,551,693,140
|
|
1,601,997,986
|
|
1,560,826,843
|
|
1,560,826,843
|
|
|
Diluted
|
|
|
1,587,707,675
|
|
1,572,742,527
|
|
1,572,742,527
|
|
1,617,253,678
|
|
1,584,193,016
|
|
1,584,193,016
|
|
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31
|
|
Year Ended December
31
|
|
|
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
(in millions, except
per share data)
|
|
(in millions, except
per share data)
|
|
|
Profit for the
period/year
|
|
|
1,205
|
|
1,409
|
|
198
|
|
3,839
|
|
5,220
|
|
735
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising
from business acquisitions or combinations*
|
|
|
126
|
|
111
|
|
16
|
|
498
|
|
445
|
|
63
|
|
|
Share-based
compensation
|
|
|
178
|
|
183
|
|
26
|
|
834
|
|
736
|
|
104
|
|
|
Losses/(gains) from
investments**
|
|
|
-
|
|
23
|
|
3
|
|
(141)
|
|
(7)
|
|
(1)
|
|
|
Income tax
effects***
|
|
|
(17)
|
|
(48)
|
|
(7)
|
|
(123)
|
|
(171)
|
|
(24)
|
|
|
Non-IFRS Net
Profit
|
|
|
1,492
|
|
1,678
|
|
236
|
|
4,907
|
|
6,223
|
|
876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,438
|
|
1,575
|
|
222
|
|
4,745
|
|
5,923
|
|
834
|
|
|
Non-controlling
interests
|
|
|
54
|
|
103
|
|
15
|
|
162
|
|
300
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.46
|
|
0.51
|
|
0.07
|
|
1.48
|
|
1.90
|
|
0.27
|
|
|
Diluted
|
|
|
0.45
|
|
0.50
|
|
0.07
|
|
1.47
|
|
1.87
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.92
|
|
1.02
|
|
0.14
|
|
2.96
|
|
3.79
|
|
0.53
|
|
|
Diluted
|
|
|
0.91
|
|
1.00
|
|
0.14
|
|
2.93
|
|
3.74
|
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,142,973,505
|
|
3,103,386,279
|
|
3,103,386,279
|
|
3,203,995,973
|
|
3,121,653,686
|
|
3,121,653,686
|
|
|
Diluted
|
|
|
3,175,415,350
|
|
3,145,485,054
|
|
3,145,485,054
|
|
3,234,507,356
|
|
3,168,386,031
|
|
3,168,386,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,571,486,752
|
|
1,551,693,140
|
|
1,551,693,140
|
|
1,601,997,986
|
|
1,560,826,843
|
|
1,560,826,843
|
|
|
Diluted
|
|
|
1,587,707,675
|
|
1,572,742,527
|
|
1,572,742,527
|
|
1,617,253,678
|
|
1,584,193,016
|
|
1,584,193,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents the
amortization of identifiable assets, including intangible assets
such as domain name, trademark, copyrights, supplier resources,
corporate customer relationships and
non-compete agreement etc., and fair value adjustment on music
content (i.e., signed contracts obtained for the rights to access
to the music contents for which the amount was
amortized over the contract period), resulting from business
acquisitions or combination.
|
|
|
** 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 December 31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
323
|
|
490
|
|
69
|
Land use
rights
|
|
2,480
|
|
2,437
|
|
343
|
Right-of-use
assets
|
|
398
|
|
367
|
|
52
|
Intangible
assets
|
|
2,368
|
|
2,032
|
|
286
|
Goodwill
|
|
19,493
|
|
19,542
|
|
2,752
|
Investments accounted
for using equity method
|
|
4,330
|
|
4,274
|
|
602
|
Financial assets at
fair value through other comprehensive income
|
3,168
|
|
6,540
|
|
921
|
Other
investments
|
|
304
|
|
307
|
|
43
|
Prepayments, deposits
and other assets
|
|
709
|
|
540
|
|
76
|
Deferred tax
assets
|
|
347
|
|
352
|
|
50
|
Term
deposits
|
|
6,530
|
|
8,719
|
|
1,228
|
|
|
40,450
|
|
45,600
|
|
6,423
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
14
|
|
8
|
|
1
|
Accounts
receivable
|
|
2,670
|
|
2,918
|
|
411
|
Prepayments, deposits
and other assets
|
|
2,958
|
|
3,438
|
|
484
|
Other
investments
|
|
37
|
|
37
|
|
5
|
Term
deposits
|
|
11,291
|
|
9,937
|
|
1,400
|
Restricted
Cash
|
|
34
|
|
31
|
|
4
|
Cash and cash
equivalents
|
|
9,555
|
|
13,567
|
|
1,911
|
|
|
26,559
|
|
29,936
|
|
4,216
|
|
|
|
|
|
|
|
Total
assets
|
|
67,009
|
|
75,536
|
|
10,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity attributable
to equity holders of the
Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in
capital
|
|
36,456
|
|
36,576
|
|
5,152
|
Shares held for share
award schemes
|
|
(202)
|
|
(302)
|
|
(43)
|
Treasury
shares
|
|
(6,349)
|
|
(6,996)
|
|
(985)
|
Other
reserves
|
|
6,140
|
|
9,658
|
|
1,360
|
Retained
earnings
|
|
12,052
|
|
16,969
|
|
2,390
|
|
|
48,099
|
|
55,907
|
|
7,874
|
Non-controlling
interests
|
|
1,028
|
|
1,295
|
|
182
|
|
|
|
|
|
|
|
Total
equity
|
|
49,127
|
|
57,202
|
|
8,057
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payables
|
|
5,536
|
|
5,636
|
|
794
|
Other payables and
other liabilities
|
|
6
|
|
-
|
|
-
|
Deferred tax
liabilities
|
|
211
|
|
239
|
|
34
|
Lease
liabilities
|
|
306
|
|
297
|
|
42
|
Deferred
revenue
|
|
106
|
|
148
|
|
21
|
|
|
6,165
|
|
6,320
|
|
890
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
4,998
|
|
5,006
|
|
705
|
Other payables and
other liabilities
|
|
4,022
|
|
3,472
|
|
489
|
Current tax
liabilities
|
|
404
|
|
567
|
|
80
|
Lease
liabilities
|
|
123
|
|
115
|
|
16
|
Deferred
revenue
|
|
2,170
|
|
2,854
|
|
402
|
|
|
11,717
|
|
12,014
|
|
1,692
|
|
|
|
|
|
|
|
Total
liabilities
|
|
17,882
|
|
18,334
|
|
2,582
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
67,009
|
|
75,536
|
|
10,639
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31
|
|
Year Ended December
31
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
2,494
|
|
1,977
|
|
278
|
|
7,481
|
|
7,337
|
|
1,033
|
Net cash used in
investing activities
|
|
(1,108)
|
|
(193)
|
|
(27)
|
|
(1,446)
|
|
(1,863)
|
|
(262)
|
Net cash used in
financing activities
|
|
(383)
|
|
(576)
|
|
(81)
|
|
(3,419)
|
|
(1,538)
|
|
(217)
|
Net increase in cash
and cash equivalents
|
|
1,003
|
|
1,208
|
|
170
|
|
2,616
|
|
3,936
|
|
554
|
Cash and cash
equivalents at beginning of the period/year
|
|
8,582
|
|
12,381
|
|
1,744
|
|
6,591
|
|
9,555
|
|
1,346
|
Exchange differences on
cash and cash equivalents
|
|
(30)
|
|
(22)
|
|
(3)
|
|
348
|
|
76
|
|
11
|
Cash and cash
equivalents at end of the period/year
|
|
9,555
|
|
13,567
|
|
1,911
|
|
9,555
|
|
13,567
|
|
1,911
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-fourth-quarter-and-full-year-2023-unaudited-financial-results-302092464.html
SOURCE Tencent Music Entertainment
Group