TME Latest Report

Tencent Music's Performance in the Current Report

At the end of 2024, Tencent Music's total operating revenue was US$7.458 billion, up 8.42% from US$6.893 billion at the end of 2023. This growth reflects Tencent Music's competitiveness and business expansion in the market, mainly due to the continuous development of music streaming services, increased advertising revenue, and growth in paid users.

Key Data in the Report

1. Tencent Music's total operating revenue in 2024 was US$7.458 billion, up US$565 million from 2023, with a growth rate of 8.42%.

2. The number of paid users for online music increased significantly in 2024, reaching 117 million in the second quarter, up 17.7% YoY; and 119 million in the third quarter, up 15.5% YoY.

3. Advertising revenue performed strongly in 2024, driving overall revenue growth.

4. The company launched several new products and services, such as high-quality soundtracks, collaboration tracks with popular games, and AI sound quality improvement features, enhancing user experience.

5. The overall digital music market in 2023 reached RMB110.677 billion, and is expected to reach RMB237.986 billion by 2029, with a CAGR of 13.23%.

Peer Comparison

1. Industry-wide analysis: The overall revenue of the digital music industry shows a growth trend, with streaming services driving market expansion, especially in the Asia-Pacific region.

2. Peer evaluation analysis: Tencent Music outperforms its peers in terms of revenue growth rate, particularly in user growth and content investment strategies, enhancing its market competitiveness.

Summary

Tencent Music's revenue growth in 2024 was mainly driven by increased market demand, the growth in paid user numbers, and increased advertising revenue. The company has enhanced user stickiness by continuously enriching content and launching new products, demonstrating its strong competitiveness in the digital music industry.

Opportunities

1. The continuously expanding digital music market provides growth opportunities for the company, especially in the Asia-Pacific region.

2. With the increasing demand for high-quality music content, Tencent Music can further invest in original content to attract more users.

3. Integrating AI technology to optimize user experience can help increase user stickiness and satisfaction, leading to more paid users.

4. Expanding collaborations with brands and popular games can further increase advertising revenue and brand exposure.

Risks

1. Intensified competition may lead to user loss and revenue decline.

2. Digital copyright and content security issues may affect the company's operations, increasing legal and compliance risks.

3. Fluctuations in the advertising market may affect the stability of advertising revenue.

4. Macroeconomic fluctuations may affect consumer spending, thus affecting overall revenue growth.