China Stock Investment Advisory
China's Largest Online Music Entertainment Platform Traded on the NYSE
March 20 2019 - Tencent Music Earnings Meet Estimates; Revenue Falls Short As Stock Tumbles By Investors Business Daily
Tencent Music Entertainment Group (TME) reported fourth-quarter results on Tuesday that met Wall Street estimates on the bottom line but fell short on revenue. Reporting after the close, the Tencent Music earnings report sent the stock down in late trading.
The China-based streaming music provider reported an adjusted profit of 8 cents per American depositary share, on revenue of $785 million. Wall Street expected an 8-cent profit on revenue of $785.8 million.
Revenue rose 50% from the year-ago quarter, in local currency. Operating expenses for the fourth quarter rose 58% to $197 million. Revenue for the full year jumped 73% to $2.76 billion.
Tencent Music stock was down 7.6%, near 17.16, during after-hours trading on the stock market today.
IPO In December
A spinoff from Tencent Holdings (TCEHY), Tencent Music held its initial public offering in December. It priced shares at 13 and raised $1.1 billion.
Tencent Music says it's the largest online music entertainment platform in China. It ended the year with 644 million monthly active users of its online music services. That's up 7% from the year-ago period.
"During the fourth quarter, we recorded strong growth across our business lines, including both online music and social entertainment services, and solidified our market leadership," Chief Executive Cussion Kar Shun Pang said in a news release. "We are firmly committed to continue investing in premium content offerings, innovative products and proprietary technology."