SHENZHEN, China, Nov. 8, 2021 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the
"Company") (NYSE: TME), the leading online music and audio
entertainment platform in China,
today announced its unaudited financial results for the third
quarter ended September 30, 2021.
Financial and Operational Highlights
In the three months ended September
30, 2021:
- Total revenues were RMB7.81
billion (US$1.21billion),
representing an increase of 3.0% year-over-year.
- Online music services revenues grew by 24.3%
year-over-year. Revenues from music subscriptions were RMB1.90 billion (US$295
million), representing 30.2% year-over-year growth.
- Online music paying users reached 71.2 million,
increasing by 37.7% year-over-year. On a sequential basis, the
number of online music paying users grew by 5.0 million. Paying
ratio was 11.2%, up from 8.0% in the third quarter of 2020 and
10.6% in the second quarter of 2021, respectively.
- Net profit of the Company was RMB788 million (US$122
million) and net profit attributable to equity holders of
the Company was RMB740 million
(US$115 million).
- Non-IFRS net profit of the Company[1] was
RMB1.06 billion (US$165 million) and Non-IFRS net profit
attributable to equity holders of the
Company[1] was RMB1.02 billion (US$158
million).
[1]
Non-IFRS net profit and Non-IFRS net profit attributable to equity
holders of the Company was 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, fair value change on puttable shares
and income tax effects.
|
"In the third quarter, our online music services delivered
healthy growth driven by strong momentum in subscriptions as users
continue to be attracted by our enhanced music streaming
experience. While the online music industry in China is adapting to regulatory changes and
facing competition for time spent from short video services, we
will continue to differentiate both our online music and social
entertainment services and execute our dual engine
content-and-platform strategy," said Mr. Cussion Pang, Executive
Chairman of Tencent Music
Entertainment Group (TME). "In parallel with our efforts to promote
the healthy and sustainable development of the music industry in
China, we have made meaningful
strides to build and expand our capability in music creation,
discovery, promotion and monetization. In addition to increased
investments in the production of high-quality music, we have
allocated more resources to support and cultivate indie musicians
and original music through our Tencent Musician Platform, with the goal of
establishing our platform as the preferred destination for music
enthusiasts."
"To better serve our users, we are strengthening our platform's
capability to provide music lovers with more video-based content,
share their passion for music within our community and have a more
socially-engaging experience. In this regard, we have launched
several initiatives that are showing encouraging progress,
including upgraded video and social features on QQ Music and Kugou
Music. Moreover, our efforts to expand long-form audio content
offering and features have resulted in long-form audio MAUs
exceeding 140 million, growing by 89% year-over-year, as our users
discover the complementary experience of music and audio
streaming," commented Mr. Ross
Liang, CEO of TME. "We continue to embrace and collaborate
with the broader Tencent ecosystem
through multiple cross-platform partnerships with Weixin,
Tencent Games and Tencent Video. With innovative product features
and rich content partnerships, we expect these win-win
collaborations to further expand our user reach and content
offering, while simultaneously fulfilling the music needs of users
on Tencent's platform," concluded Mr. Liang.
Recent Operational Highlights
- TME's online music and social entertainment services key
operating metrics*
|
3Q21
|
3Q20
|
YoY %
|
Mobile MAU - online
music (million)
|
636
|
646
|
(1.5%)
|
Mobile MAU - social
entertainment (million)
|
205
|
235
|
(12.8%)
|
Paying users - online
music (million)
|
71.2
|
51.7
|
37.7%
|
Paying users - social
entertainment (million)
|
10.0
|
10.5
|
(4.8%)
|
Monthly ARPPU -
online music (RMB)
|
8.9
|
9.4
|
(5.3%)
|
Monthly ARPPU -
social entertainment (RMB)
|
163.9
|
166.7
|
(1.7%)
|
- The year-over-year decline in online music mobile MAUs was
primarily due to churns of our casual users served by other
pan-entertainment platforms; however, online music mobile MAUs
increased sequentially.
- Due to regulatory changes and industry competition, social
entertainment services MAUs and paying users decreased
year-over-year and quarter-over-quarter. We will continue to invest
in the operations of our social entertainment services through
audio live streaming, virtual live streaming room, as well as
cross-platform live streaming events.
- We continued to enhance our music production and promotion
capability to produce high-quality music. Our process leverages our
deep understanding of music trends, our comprehensive connections
with musicians, songwriters and producers, proprietary music
creation and evaluation technology, and internal and external
promotion channels.
-
- We produced the chart-topping theme song "The Peerless King" by
artist G.E.M. for the popular game "Honour of Kings." The song was
released for the game's 2021 World Champion Cup and has been well
received by both music and game lovers.
- Wang Jing Wen, a rising musician
we nurtured, entered the industry-acclaimed singing competition
show "SING!CHINA 2021" and won the second place, propelling the
popularity of her songs to a new record with 1.9 billion streams on
our platforms in the third quarter.
- We continued to cultivate original works and enrich the indie
musician ecosystem through our Tencent Musician Platform.
-
- We empowered our indie musicians with useful tools and
collaborative opportunities to create, grow, engage and monetize
their art and fan base to realize their full potential. We also
provide access to valuable resources, including TME Live
performances, incentive plans, promotion channels, education
platform, copyright support and more.
- In the third quarter, we launched our (1) "Riding on the Wind
Plan" to inspire new music content creation by efficiently pairing
musicians with top songwriters and lyricists; and (2) an upgraded
"One Hundred Million Yuan Incentive Plan," which incentivizes
eligible musicians to collaborate with us in music creation.
- By the end of the third quarter, the number of indie musicians
on the Tencent Musician Platform reached 260,000, extending its
growth streak with a double-digit year-over-year increase. The
streaming volume of their original works continues to record
healthy growth.
- TME Live continued to deliver on our ambition to create new
online-merge-offline music scenarios with immersive experiences. In
the third quarter, it held 26 online live performances, worked with
the Tencent Musician Platform to showcase offline live
performances, and rolled out a series of indoor music festivals
across multiple cities.
- With respect to our music platform, we upgraded our products to
inspire creation and innovation of content on our platform and
enhance user stickiness.
-
- QQ Music's short video tab featuring immersive video feeds and
Kugou Music's embedded MVs on its streaming page achieved
sequential increases in their user penetration. By the end of the
third quarter, QQ Music's daily video views and daily unique
visitors on our platform reached 100 million and 18 million
respectively, representing triple-digit growth rates.
- We launched a one-click video publishing feature allowing indie
musicians to simultaneously publish and distribute their music
videos across Weixin Video Account, QQ Music, Kugou Music, Kuwo
Music and WeSing, making it easier for musicians to reach a broader
audience.
- Through continued efforts to expand our long-form audio content
offering and features, long-form audio MAUs recorded strong growth
and exceeded 140 million in the third quarter, growing by 89%
year-over-year. Long-form audio paying users reached 5 million by
the end of the third quarter, growing by over 100% year-over-year,
a majority of which are also online music paying users as they are
attracted by the complementary nature of an integrated music and
audio streaming service.
- Within social entertainment services, we focused on product and
operational improvements to better engage users.
-
- We launched WeSing's virtual live streaming room to provide an
all-new interactive experience to users.
- We have made solid progress in expanding audio live streaming,
as demonstrated by incremental growth in both user base and
revenues quarter-over-quarter and year-over-year.
- Kugou Music, QQ Music and WeSing's live streaming services
joined forces in another cross-platform live streaming event to
foster paying user engagement.
- We continued to deepen our partnerships with the broader
Tencent ecosystem:
-
- QQ Music and Roblox China, a joint
venture set up by Tencent and Roblox, collaborated to launch
an immersive virtual music concert with exclusive special effects,
fireworks, virtual gifts, and music mini-games in a 3D
setting.
- Tencent Video users can now seamlessly discover and enjoy
original soundtracks and other music related to the video content
they are watching.
- We enabled users to update their Weixin status when they sing
or finish a recording on the WeSing platform, showcasing singing as
a way to socialize.
[*] For the definitions of the cited key operating metrics,
please refer to the introduction section in the Company's 2020 20-F
filed on April 9, 2021. The monthly ARPPU of social entertainment
services is calculated based on revenues from social entertainment
and others, including advertising services provided on our social
entertainment platforms.
Third Quarter 2021 Financial Results
Revenues
Total revenues in the third quarter of 2021 increased by
RMB230 million, or 3.0%, to
RMB7.81 billion (US$1.21 billion) from RMB7.58 billion in the same period of 2020.
- Revenues from online music services in the third quarter of
2021 increased by 24.3% to RMB2.89
billion (US$448 million) from
RMB2.32 billion in the same period of
2020. The increase was driven by strong growth in music
subscription revenues, supplemented by the growth in revenues from
advertising services. Revenues from music subscriptions were
RMB1.90 billion (US$295 million), representing an increase of
30.2% from RMB1.46 billion in the
third quarter of 2020, primarily due to an increase of 37.7% in the
number of paying users, partially offset by a decrease in ARPPU
from RMB9.4 in the third quarter of
2020 to RMB8.9 this quarter. The
decrease in ARPPU was mainly due to additional promotions this
quarter.
- Revenues from social entertainment services and others in the
third quarter of 2021 decreased by 6.4% to RMB4.92 billion (US$763
million) from RMB5.25 billion
in the same period of 2020. The decrease was mainly due to the
impact from new regulations as well as increased competition from
other pan-entertainment platforms, despite a strong revenue growth
in audio live streaming. On a year-over-year basis, ARPPU and
paying users of social entertainment services decreased by 1.7% and
4.8% in the third quarter of 2021, respectively.
Cost of Revenues
Cost of revenues in the third quarter of 2021 increased by 7.4%
to RMB5.50 billion (US$853 million) from RMB5.12 billion in the same period of 2020,
primarily due to increased revenue sharing fees and content costs
related to royalties.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2021 decreased by 6.1% to
RMB2.31 billion (US$358 million) from RMB2.46 billion in the same period of 2020. Gross
margin was 29.6% in the third quarter of 2021, compared to 32.4% in
the same period of 2020. This decrease in gross margin was
primarily due to the decrease in revenues from social entertainment
services and increased revenue sharing fees and investments in
content offerings.
Operating Expenses for the Period
Total operating expenses in the third quarter of 2021 increased
by 14.4% to RMB1.64 billion
(US$254 million) from RMB1.43 billion in the same period of 2020.
Operating expenses as a percentage of total revenues increased to
21.0% in the third quarter of 2021 from 18.9% in the same period of
2020.
- Selling and marketing expenses in the third quarter of 2021
were RMB587 million (US$91 million), representing a decrease of 8.6%
year-over-year from RMB642 million in
the same period of 2020. This decrease was primarily due to
improved operating efficiencies as we continued to reduce user
acquisition expenses effectively through leveraging our internal
organic user traffic to attract more users.
- General and administrative expenses in the third quarter of
2021 were RMB1.05 billion
(US$163 million), representing an
increase of 33.0% year-over-year from RMB790
million in the same period of 2020. The increase was mainly
due to increased investment in research and development to expand
our competitive advantages in product and technology innovations,
as well as post-acquisition awards, share-based compensation
expenses and amortization of intangible assets arising from the
acquisition of Lazy Audio.
Operating Profit for the Period
Operating profit was RMB919
million (US$143 million) in
the third quarter of 2021, compared to RMB1.26 billion in the same period of 2020.
Income Tax Expenses
Effective tax rate in the third quarter of 2021 was 11.5%,
compared to 9.27% in the same period of 2020, as some of our
entities became qualified for certain tax benefits in the second
half of 2020. The effective tax rate represents certain estimates
by the Company as to the tax obligations and benefits applicable to
it in each quarter.
Net Profit and Non-IFRS Net Profit for the Period
Net profit attributable to equity holders of the Company in the
third quarter of 2021 was RMB740
million (US$115 million),
compared to net profit of RMB1.13
billion in the same period of 2020. Non-IFRS net profit
attributable to equity holders of the Company was RMB1.02 billion (US$ 158
million) in the third quarter of 2021, compared to
RMB1.35 billion in the same period of
2020. Please refer to the section titled "Non-IFRS Financial
Measure" for details.
Earnings per ADS
Basic and diluted earnings per American Depositary Shares
("ADS") were RMB0.45 (US$0.07) and RMB0.44 (US$0.07),
respectively, in the third quarter of 2021. Non-IFRS basic and
diluted earnings per ADS were RMB0.61
(US$0.09) and RMB0.61 (US$0.09),
respectively, in the third quarter of 2021. During the third
quarter of 2021, the Company had weighted averages of 1.65 billion
basic and 1.67 billion diluted ADSs outstanding, respectively. Each
ADS represents two of the Company's Class A ordinary shares. Please
refer to the section titled "Non-IFRS Financial Measure" for
details.
Cash Flows
Net cash provided by operating activities in the third quarter
of 2021 was RMB1.60 billion
(US$248 million), compared to
RMB516 million in cash provided by
operating activities during the same period of 2020. The increase
in operating cash flow was primarily due to higher content royalty
payment during the third quarter of 2020. Net cash used in
investing activities in the third quarter of 2021 was RMB1.69 billion (US$263
million), compared to net cash used in investing activities
of RMB7.90 billion during the same
period of 2020. The fluctuation of cash flows from investing
activities was primarily due to higher purchase and maturity of
term deposits and short-term investments in the third quarter of
2020, and payment for land use right in the same period of
2021. Net cash used in financing activities in the third quarter of
2021 was RMB1.65 billion
(US$256 million), compared to
RMB5.43 billion of cash provided by
financing activities during the same period of 2020. Cash used in
financing activities in the third quarter of 2021 was primarily due
to cash paid for repurchase of ordinary shares and cash
provided by financing activities in the same period of 2020 was
primarily related to proceeds received from notes offering in
September, 2020.
Cash, Cash Equivalents, Term Deposits and Short-term
Investments
As of September 30, 2021, the
combined balance of the Company's cash, cash equivalents, term
deposits and short-term investments amounted to RMB24.46billion (US$3.80
billion), compared to RMB25.75
billion as of June 30, 2021.
The decrease in the combined balance was mainly due to payment for
share repurchases. Cash generated from operating activities had a
positive impact on the combined balances. The Company's cash and
cash equivalents balance was also affected by the change in the
exchange rate of RMB to USD at different balance sheet dates. The
exchange rate was 6.4434 to 1 on September
30, 2021.
Share Repurchase Program
Pursuant to the 2021 Share Repurchase Program announced on
March 28, 2021, during the third
quarter, we repurchased approximately 25.1 million ADSs from the
open market with cash for a total consideration of approximately
US$239 million.
Conference Call Information
TME's management will hold a conference call on Monday,
November 8, 2021, at 8:00 P.M. Eastern
Time or 9:00 A.M. Beijing Time on Tuesday,
November 9, 2021, to discuss its financial results. Listeners may
access the call by dialing the following numbers:
United States Toll
Free:
|
+1-888-317-6003
|
International:
|
+1-412-317-6061
|
Mainland China Toll
Free:
|
400-120-6115
|
Hong Kong, China Toll
Free:
|
800-963-976
|
Access
Code:
|
6920975
|
The replay will be accessible through November
15, 2021, by dialing the following numbers:
United States Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Access
Code:
|
10161315
|
A live and archived webcast of the conference call will also be
available on the Company's investor relations website at
https://ir.tencentmusic.com/.
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 RMB6.4434 to US$1.00, the noon buying rate in effect on
September 30, 2021, 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
year excluding amortization of intangible and other assets arising
from acquisitions, share-based compensation expenses, net
losses/gains from investments, fair value change on puttable shares
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.
About Tencent Music
Entertainment
Tencent Music Entertainment Group
(NYSE: TME) 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 use technology to
elevate the role of music in people's lives by enabling them to
create, enjoy, share and interact with music. 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. 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
September 30
|
|
Nine Months Ended
September 30
|
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online music
services
|
|
|
2,324
|
|
2,888
|
|
448
|
|
6,589
|
|
8,587
|
|
1,333
|
Social entertainment
services and others
|
|
|
5,251
|
|
4,917
|
|
763
|
|
14,229
|
|
15,050
|
|
2,336
|
|
|
|
7,575
|
|
7,805
|
|
1,211
|
|
20,818
|
|
23,637
|
|
3,668
|
Cost of
revenues
|
|
|
(5,117)
|
|
(5,496)
|
|
(853)
|
|
(14,213)
|
|
(16,425)
|
|
(2,549)
|
Gross
profit
|
|
|
2,458
|
|
2,309
|
|
358
|
|
6,605
|
|
7,212
|
|
1,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(642)
|
|
(587)
|
|
(91)
|
|
(1,702)
|
|
(1,928)
|
|
(299)
|
General and
administrative expenses
|
|
|
(790)
|
|
(1,051)
|
|
(163)
|
|
(2,195)
|
|
(2,942)
|
|
(457)
|
Total operating
expenses
|
|
|
(1,432)
|
|
(1,638)
|
|
(254)
|
|
(3,897)
|
|
(4,870)
|
|
(756)
|
Interest
income
|
|
|
139
|
|
131
|
|
20
|
|
466
|
|
408
|
|
63
|
Other gains,
net
|
|
|
95
|
|
117
|
|
18
|
|
240
|
|
368
|
|
57
|
Operating
profit
|
|
|
1,260
|
|
919
|
|
143
|
|
3,414
|
|
3,118
|
|
484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net
profit/(loss) of investments accounted for using equity
method
|
|
|
33
|
|
1
|
|
0
|
|
14
|
|
(48)
|
|
(7)
|
Finance
cost
|
|
|
(42)
|
|
(30)
|
|
(5)
|
|
(79)
|
|
(90)
|
|
(14)
|
Profit before
income tax
|
|
|
1,251
|
|
890
|
|
138
|
|
3,349
|
|
2,980
|
|
462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(116)
|
|
(102)
|
|
(16)
|
|
(385)
|
|
(342)
|
|
(53)
|
Profit for the
period
|
|
|
1,135
|
|
788
|
|
122
|
|
2,964
|
|
2,638
|
|
409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,132
|
|
740
|
|
115
|
|
2,958
|
|
2,493
|
|
387
|
Non-controlling
interests
|
|
|
3
|
|
48
|
|
7
|
|
6
|
|
145
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary
shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.34
|
|
0.22
|
|
0.03
|
|
0.89
|
|
0.75
|
|
0.12
|
Diluted
|
|
|
0.34
|
|
0.22
|
|
0.03
|
|
0.88
|
|
0.74
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS
(2 Class A shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.68
|
|
0.45
|
|
0.07
|
|
1.79
|
|
1.50
|
|
0.23
|
Diluted
|
|
|
0.67
|
|
0.44
|
|
0.07
|
|
1.76
|
|
1.47
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and Class B
ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,316,674,790
|
|
3,305,669,441
|
|
3,305,669,441
|
|
3,311,071,890
|
|
3,334,040,031
|
|
3,334,040,031
|
Diluted
|
|
|
3,361,909,938
|
|
3,337,499,968
|
|
3,337,499,968
|
|
3,355,906,494
|
|
3,382,627,682
|
|
3,382,627,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in
earnings per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,658,337,395
|
|
1,652,834,720
|
|
1,652,834,720
|
|
1,655,535,945
|
|
1,667,020,016
|
|
1,667,020,016
|
Diluted
|
|
|
1,680,954,969
|
|
1,668,749,984
|
|
1,668,749,984
|
|
1,677,953,247
|
|
1,691,313,841
|
|
1,691,313,841
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
Profit for the
period
|
|
|
1,135
|
|
788
|
|
122
|
|
2,964
|
|
2,638
|
|
409
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising from acquisitions*
|
|
|
102
|
|
127
|
|
20
|
|
289
|
|
357
|
|
55
|
Share-based
compensation
|
|
|
153
|
|
202
|
|
31
|
|
429
|
|
551
|
|
86
|
(Gains)/Losses from
investments**
|
|
|
(43)
|
|
(21)
|
|
(3)
|
|
(62)
|
|
16
|
|
2
|
Fair value change on
puttable shares ***
|
|
|
9
|
|
-
|
|
-
|
|
28
|
|
-
|
|
-
|
Income tax
effects****
|
|
|
(7)
|
|
(33)
|
|
(5)
|
|
(41)
|
|
(103)
|
|
(16)
|
Non-IFRS Net
Profit
|
|
|
1,349
|
|
1,063
|
|
165
|
|
3,607
|
|
3,459
|
|
537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,346
|
|
1,015
|
|
158
|
|
3,601
|
|
3,314
|
|
514
|
Non-controlling
interests
|
|
|
3
|
|
48
|
|
7
|
|
6
|
|
145
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary
shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.41
|
|
0.31
|
|
0.05
|
|
1.09
|
|
0.99
|
|
0.15
|
Diluted
|
|
|
0.40
|
|
0.30
|
|
0.05
|
|
1.07
|
|
0.98
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS
(2 Class A shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.81
|
|
0.61
|
|
0.09
|
|
2.18
|
|
1.99
|
|
0.31
|
Diluted
|
|
|
0.80
|
|
0.61
|
|
0.09
|
|
2.15
|
|
1.96
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and Class B
ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,316,674,790
|
|
3,305,669,441
|
|
3,305,669,441
|
|
3,311,071,890
|
|
3,334,040,031
|
|
3,334,040,031
|
Diluted
|
|
|
3,361,909,938
|
|
3,337,499,968
|
|
3,337,499,968
|
|
3,355,906,494
|
|
3,382,627,682
|
|
3,382,627,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in
earnings per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,658,337,395
|
|
1,652,834,720
|
|
1,652,834,720
|
|
1,655,535,945
|
|
1,667,020,016
|
|
1,667,020,016
|
Diluted
|
|
|
1,680,954,969
|
|
1,668,749,984
|
|
1,668,749,984
|
|
1,677,953,247
|
|
1,691,313,841
|
|
1,691,313,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents the
amortization of identifiable assets, including intangible assets
and prepayments for music content, resulting from
acquisitions
|
|
|
** Including the net
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
fair value changes on the put liability of certain shares issued in
2018
|
|
|
**** Represents the
income tax effects of Non-IFRS adjustments
|
|
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED
BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
As at December 31,
2020
|
|
As at September
30, 2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and equipment
|
|
176
|
|
232
|
|
36
|
Right-of-use assets
|
|
311
|
|
291
|
|
45
|
Intangible assets
|
|
2,020
|
|
2,764
|
|
429
|
Goodwill
|
|
17,492
|
|
19,100
|
|
2,964
|
Investments accounted for using equity method
|
|
2,255
|
|
3,631
|
|
564
|
Financial assets at fair value through other
comprehensive income
|
9,771
|
|
7,177
|
|
1,114
|
Other
investments
|
|
349
|
|
201
|
|
31
|
Prepayments, deposits and other assets
|
|
956
|
|
2,297
|
|
356
|
Deferred
tax assets
|
|
303
|
|
340
|
|
53
|
Term
deposits
|
|
2,953
|
|
4,253
|
|
660
|
|
|
36,586
|
|
40,286
|
|
6,252
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
18
|
|
27
|
|
4
|
Accounts
receivable
|
|
2,800
|
|
2,686
|
|
417
|
Prepayments, deposits and other assets
|
|
2,846
|
|
3,152
|
|
489
|
Other
investments
|
|
37
|
|
37
|
|
6
|
Short-term investments
|
|
-
|
|
1,142
|
|
177
|
Term
deposits
|
|
14,858
|
|
13,984
|
|
2,170
|
Cash and
cash equivalents
|
|
11,128
|
|
5,078
|
|
788
|
|
|
31,687
|
|
26,106
|
|
4,052
|
|
|
|
|
|
|
|
Total
assets
|
|
68,273
|
|
66,392
|
|
10,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity
attributable to equity holders of the Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in capital
|
|
35,044
|
|
36,236
|
|
5,624
|
Shares
held for share award schemes
|
|
(78)
|
|
(178)
|
|
(28)
|
Treasury
shares
|
|
(134)
|
|
(3,361)
|
|
(522)
|
Other
reserves
|
|
6,300
|
|
3,594
|
|
558
|
Retained
earnings
|
|
11,111
|
|
13,660
|
|
2,120
|
|
|
52,245
|
|
49,953
|
|
7,753
|
Non-controlling
interests
|
|
486
|
|
662
|
|
103
|
|
|
|
|
|
|
|
Total
equity
|
|
52,731
|
|
50,615
|
|
7,855
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payable
|
|
5,175
|
|
5,148
|
|
799
|
Accounts
payable
|
|
136
|
|
93
|
|
14
|
Other
payables and other liabilities
|
|
68
|
|
40
|
|
6
|
Deferred
tax liabilities
|
|
265
|
|
253
|
|
39
|
Lease
liabilities
|
|
218
|
|
203
|
|
32
|
Deferred
revenue
|
|
78
|
|
80
|
|
12
|
|
|
5,940
|
|
5,817
|
|
903
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
3,565
|
|
4,481
|
|
695
|
Other
payables and other liabilities
|
|
3,881
|
|
3,274
|
|
508
|
Current
tax liabilities
|
|
445
|
|
407
|
|
63
|
Lease
liabilities
|
|
103
|
|
101
|
|
16
|
Deferred
revenue
|
|
1,608
|
|
1,697
|
|
263
|
|
|
9,602
|
|
9,960
|
|
1,546
|
|
|
|
|
|
|
|
Total
liabilities
|
|
15,542
|
|
15,777
|
|
2,449
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
68,273
|
|
66,392
|
|
10,304
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
516
|
|
1,595
|
|
248
|
|
3,021
|
|
4,417
|
|
686
|
Net cash used in
investing activities
|
|
(7,895)
|
|
(1,692)
|
|
(263)
|
|
(14,063)
|
|
(6,995)
|
|
(1,086)
|
Net cash provided
by/(used in) financing activities
|
|
5,429
|
|
(1,651)
|
|
(256)
|
|
5,273
|
|
(3,424)
|
|
(531)
|
Net decrease in cash
and cash equivalents
|
|
(1,950)
|
|
(1,748)
|
|
(271)
|
|
(5,769)
|
|
(6,002)
|
|
(931)
|
Cash and cash
equivalents at beginning of the period
|
|
11,776
|
|
6,822
|
|
1,059
|
|
15,426
|
|
11,128
|
|
1,727
|
Exchange differences
on cash and cash equivalents
|
|
(185)
|
|
4
|
|
1
|
|
(16)
|
|
(48)
|
|
(7)
|
Cash and cash
equivalents at end of the period
|
|
9,641
|
|
5,078
|
|
788
|
|
9,641
|
|
5,078
|
|
788
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-third-quarter-2021-unaudited-financial-results-301418525.html
SOURCE Tencent Music Entertainment
Group