Revenues surged 50.5% annually to RMB5.40 billion ($785 million), in line with market expectations, mainly reflecting the double-digit growth in the number of paying users across the online and social entertainment services. Revenues from online music services jumped 45% while paid music revenue climbed 38%.
Revenues surged 50.5%, reflecting the double-digit growth in the number of paying users across the online and social entertainment services
During the three-month period, the number of Mobile Monthly Active Users (MAU) for the online music service advanced 6.8% year-over-year to 644 million, while the Mobile MAU for social entertainment moved up 9.1% to 228 million. While the Mobile ARPPU for the social entertainment segment rose sharply by 24.3%, online music Mobile ARPPU dropped 1.1%.
“During the fourth quarter of 2018, we recorded strong growth across our business lines, including both online music and social entertainment services, and solidified our market leadership,” said Tencent Music CEO Cussion Kar Shun Pang.
The company started trading on the New York Stock Exchange in December last year after a $1.1-billion IPO – the fourth largest by a Chinese firm. Earlier, the debut was delayed due to the escalation of the US-China trade war.
Swedish music entertainment platform and rival Spotify (SPOT), which owns a 7.5% stake in Tencent Music, last month reported stronger than expected earnings for the fourth quarter, supported by a 30% revenue growth.
After starting Tuesday’s trading on a high note, Tencent’s shares lost momentum as the session progressed. The stock has gained around 35% since it debuted last year.