Tencent Music's net profit soars 35pc to 6.64b yuan

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Tencent Music Entertainment (1698) reported a 35 percent year-on-year growth in net profit for 2024 to 6.64 billion yuan (HK$6.18 billion), driven by strong growth in its online music business.

The company's total revenues amounted to 28.4 billion yuan, a 2.3 percent year-over-year increase. Of this, its revenue from music subscriptions grew by nearly 26 percent from a year earlier to 15.23 billion yuan.

The TME board approved an annual cash dividend of about US$273 million (HK$2.13 billion), with a US$0.09 per ordinary share or an US$0.18 per American depositary share.

The board also authorized a new Share Repurchase Program of up to US$1 billion during a 24-month period commencing in March.

Looking ahead to 2025, the company aims to harness the power of artificial intelligence to personalize its services and bring more new experiences to users, according to chief executive Ross Liang Zhu.

Executive chairman Cussion Pang Kar-shun said TME closed the fourth quarter with advancements across key areas of online music business, laying a stronger foundation for future growth and innovation.

The company topped analysts' estimates for a quarterly revenue on Tuesday with a second consecutive quarter of growth as strong demand for its streaming service helped the company bounce back after a year-long slowdown.

For the three months through December, its revenue rose 8.2 percent from the same period a year earlier to 7.46 billion yuan, beating analysts' average estimate of 7.30 billion yuan, according to data compiled by LSEG.

STAFF REPORTER and REUTERS