SHENZHEN, China, Nov. 14,
2023 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the
"Company") (NYSE: TME and HKEX: 1698), the leading online music and
audio entertainment platform in China, today announced its unaudited financial
results for the third quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights
- Total revenues were RMB6.57
billion (US$900 million),
representing a 10.8% year-over-year decrease, mainly due to the
decline in revenues from social entertainment services and
others.
- Revenues from music subscriptions were RMB3.19 billion (US$438
million), representing 42.0% year-over-year growth. The
number of paying users increased by 20.8% year-over-year to
103.0 million, up 3.6 million from the second quarter of 2023.
- Net profit was RMB1.26
billion (US$173 million),
representing 15.6% year-over-year growth. Net profit
attributable to equity holders of the Company was RMB1.17 billion (US$160
million), representing 10.1% year-over-year growth.
Non-IFRS net profit[1] was RMB1.50 billion (US$206
million), representing 6.5% year-over-year growth.
Non-IFRS net profit attributable to equity holders of the
Company[1] was RMB1.41
billion (US$193 million),
representing 2.1% year-over-year growth.
- Diluted earnings per ADS was RMB0.74 (US$0.10).
- Total cash, cash equivalents and term
deposits as of September 30,
2023 were RMB30.96 billion
(US$4.24 billion).
Mr. Cussion Pang, Executive Chairman of TME, commented,
"Our dual-engine content-and-platform
strategy continues to pay off. In the third quarter, we
reported strong growth in our online music services despite
the topline headwinds from the social entertainment business.
The accelerated year-over-year
subscription revenue growth was supported
by expansion in both subscriber base and ARPPU. Our evolving
ecosystem and resilient businesses enabled us to deliver a
group-wide margin expansion. These achievements further unlock the
value of music and pave the way for our sustainable development in
the long run."
Mr. Ross Liang, CEO of TME,
said, "The third quarter results
highlight efficiency gains across our platforms. Our ecosystem's
strength, platform's scale and AI-empowered technological edges
have enabled us to transition into an increasingly robust music
powerhouse. Online music has more visibly become our core business,
driving engagement and earnings growth, while we adjust our social
entertainment offerings. We will continue to reimagine the way
music connects with people, creating a
more enjoyable user experience through technology and product
innovation."
Third Quarter 2023 Operational Highlights
|
3Q23
|
|
3Q22
|
|
YoY %
|
MAUs – online music
(million)
|
594
|
|
620
|
|
(4.2 %)
|
Mobile MAUs – social
entertainment (million)
|
129
|
|
155
|
|
(16.8 %)
|
Paying users – online
music (million)
|
103.0
|
|
85.3
|
|
20.8 %
|
Paying users – social
entertainment (million)
|
7.8
|
|
7.4
|
|
5.4 %
|
Monthly ARPPU – online
music (RMB)
|
10.3
|
|
8.8
|
|
17.0 %
|
Monthly ARPPU – social
entertainment (RMB)
|
86.2
|
|
177.3
|
|
(51.4 %)
|
Dual-engine content-and-platform strategy
fortifies TME's music ecosystem, driving prosperity for
stakeholders along the industry value chain.
- Leveraging our platform's strength, we invigorated our content
ecosystem by fostering deeper, mutually beneficial partnerships
with record labels and artists. 1) We introduced a series of
music-based interactive features for TFBOYS's 10th anniversary
single to enhance user engagement and their bond with the artists.
2) We forged a strategic partnership with CUBE Entertainment to
further enrich our music catalog.
- We extended our tailored platform for artists at all stages to
develop their careers. 1) We hosted an offline concert for
Zhou Shen celebrating the 9th
anniversary of his debut, highlighted by sales of sought-after
tickets and great excitement among users. 2) We assisted
TIA RAY, our strategic partner
artist, and Kirsty, a rising indie musician cultivated by our
Tencent Musician Platform, with their
appearances on China Central Television and provincial Satellite TV
networks, boosting their influence nationwide.
- We enhanced our technology capabilities in content creation,
promotion and distribution. 1) Venus introduced its zero-shot
AI-powered music production tool and Vocal Producer upgraded its
function to support AI-generated music content in multiple
languages. 2) Our music promotion and distribution tool kits, such
as TME Music Cloud and Kugou's ToMoreMusic platform, made further
advancements in assisting industry participants with efficient
musical work promotions. With our technological capabilities, we
also successfully boosted the popularity of Chinese songs overseas.
For example, we helped Angela
Zhang's Beast and Yang Junan's Summer Love chart on various popular music
lists in Singapore.
Leveraging LLMs, we enhanced music discovery and consumption
efficiency, creating a more engaging user experience.
- Better connecting users with music through enhanced
recommendation and personalization. 1) We continued upgrading
our recommendation middle platform to enhance each of our Apps'
ability to personalize music recommendations. 2) QQ Music's recent
chorus-focused Quick Listen mode, together with Kugou Music's
upgraded version, featuring quick discovery of multiple cover
songs, effectively lowered the barriers to music discovery.
- Better facilitating users' content consumption through more use
cases and entertainment scenarios. 1) We extended our
mobile-end offerings, including seamless user interface, premium
sound quality and tailored playlists, to further enrich in-car
music consumption and user experience. We also cooperated with more
automakers and car models to increase penetration. Moreover, we led
the industry by partnering with Qualcomm to enhance music listening
experience on mobile devices with the help of hardware's AI
computing capabilities. 2) We customized music services for
different entertainment sectors, creating unique touchpoints for
original IPs. For example, we successfully co-produced both theme
and end credits songs for the blockbuster movie No More
Bets.
- Better connecting users with each other in a thriving community
where they can bond through music and music-based interactive
features. For example, QQ Music organized over 30
song-guessing contests featuring musical works by Jay Chou, Zhou
Shen, BLACKPINK and Teens in Times.[3]
Third Quarter 2023 Financial Review
Total revenues decreased by RMB796
million, or 10.8%, to RMB6.57
billion (US$900 million) from
RMB7.37 billion in the same period of
2022.
- Revenues from online music services delivered a strong
year-over-year increase of 32.7% to RMB4.55
billion (US$624 million). The
increase was driven by strong growth in music subscription
revenues, supplemented by growth in revenues from advertising
services. Revenues from music subscriptions were RMB3.19 billion (US$438
million), representing 42.0% year-over-year growth compared
with RMB2.25 billion in the same
period of 2022. This rapid growth was driven by further expansion
in the online music paying user base and ARPPU. Specifically, the
number of online music paying users increased by 20.8%
year-over-year to 103.0 million, while monthly ARPPU expanded to
RMB10.3, marking its sixth
consecutive quarter of growth and another record-high amount. The
increases in both the number of paying users and ARPPU were
primarily attributable to our more appealing member privileges,
interactive product features, attractive music content, disciplined
promotions and member acquisition strategies, as well as high
subscriber retention rate. The year-over-year increase in
revenues from advertising was primarily because we provided a more
diversified product portfolio and innovative ad formats, which are
highly attractive to advertisers.
- Revenues from social entertainment services and others
decreased by 48.8% to RMB2.02 billion
(US$276 million) from RMB3.94 billion in the same period of
2022. The decrease was mainly caused by the adjustments to
certain live-streaming interactive functions and more stringent
compliance procedures as we implemented several service
enhancement and risk control measures.
Cost of revenues decreased by 14.8% year-over-year to
RMB4.23 billion (US$579 million). The decrease was mainly due to
the decrease in revenue sharing fees resulted from the decline in
revenues from social entertainment services, partially offset by
the increase in content costs of royalties and advertising agency
fees.
Gross margin increased by 3.1 percentage points to 35.7%
from 32.6% in the same period of 2022, primarily due to the
strong growth of revenues from music subscriptions and advertising
services, and the ramp-up of our own content.
Total operating expenses decreased by 11.8%
year-over-year to RMB1.27 billion
(US$174 million). Operating expenses
as a percentage of total revenues decreased to 19.3% from 19.5% in
the same period of 2022.
- Selling and marketing expenses were RMB219 million (US$30
million), representing a year-over-year decrease of 10.6%,
as we focused on the ROI of each promotion channel and
improved the effectiveness of promotion measures.
- General and administrative expenses were RMB1.05 billion (US$144
million), representing a year-over-year decrease of 12.0%.
This decrease was primarily due to reduced employee-related
expenses as a result of improved headcount efficiency and the
expenses related to the Hong Kong
secondary listing incurred in the same period of 2022.
Driven by effective cost controls and improved operating
efficiency, our operating profit grew to RMB1.43 billion (US$195
million) in the third quarter of 2023, representing an
increase of 13.0% year-over-year.
For the third quarter of 2023, net profit was
RMB1.26 billion (US$173 million) and net profit attributable to
equity holders of the Company was RMB1.17 billion (US$160
million). Non-IFRS net profit was RMB1.50 billion (US$206
million) and non-IFRS net profit attributable to equity
holders of the Company was RMB1.41
billion (US$193 million).
Please refer to the section in this press release titled "Non-IFRS
Financial Measure" for details.
Basic and diluted earnings per American Depositary Shares
("ADS") were RMB0.75 (US$0.10) and RMB0.74 (US$0.10),
respectively, for the third quarter of 2023; and non-IFRS basic
and diluted earnings per ADS were RMB0.90 (US$0.12)
and RMB0.89 (US$0.12), respectively. The Company had weighted
averages of 1.57 billion basic and 1.59 billion diluted ADSs
outstanding, respectively. Each ADS represents two of the Company's
Class A ordinary shares.
As of September 30, 2023, the
combined balance of the Company's cash, cash equivalents and
term deposits amounted to RMB30.96
billion (US$4.24 billion),
compared with RMB30.5 billion as of
June 30, 2023.
Share Repurchase Program
Under the US$500 million Share Repurchase Program
announced on March 21, 2023, as of September 30, 2023, we
had repurchased 15.8 million ADSs from the open market with cash
for a total consideration of approximately US$103 million.
Social Responsibilities
In the third quarter, we joined hands with Tencent's Sustainable
Social Value ("SSV") and launched our 2023 Youth Music Tech X
program, inviting high school students to explore a
technology-inspired music journey. Working side by side with the
students, we commissioned a theme song, The Most Beautiful Sound
in the World, to champion public care and support for
hearing-impaired senior citizens. In addition, we organized a
special music education project, "Music Garden Space," to help
children from ethnic minorities and remote areas appreciate the
beauty and power of music. These initiatives demonstrate the value
and positive influence that we can bring to a wide range of
communities.
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 RMB7.2960 to US$1.00, the noon buying rate in effect on
September 29, 2023, 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
period excluding amortization of intangible and other assets
arising from business acquisitions or combinations, share-based
compensation expenses, net losses/gains from investments and
related 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.
[1] Non-IFRS net
profit and non-IFRS net profit attributable to equity holders of
the Company were arrived at after excluding the combined effect of
amortization of intangible assets and other assets arising from
business acquisitions or combinations, share-based compensation
expenses, net losses/gains from investments, and related income tax
effects.
|
[2] Starting from
the first quarter of 2023, online music MAUs began to include
unique mobile and certain IoT devices. Accordingly, comparative
figures were updated to conform to the current presentation.
"Online music MAUs" for any given period (i) refers to the monthly
average of the sum of the MAUs for that period; and (ii) includes
QQ Music, Kugou Music, Kuwo Music and other music products, through
which such product is accessed at least once in that month;
duplicate access of different services by the same device is not
eliminated from the calculation.
|
[3] Names of
artists and bands contained in this press release are sorted
according to the following rules: (i) grouped by artists and bands;
and (ii) in alphabetical order by given names.
|
About Tencent Music Entertainment
Tencent Music Entertainment Group
(NYSE: TME and HKEX: 1698) 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
create endless possibilities with music and technology. 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 and the HKEX. 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
|
|
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
|
|
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
|
|
|
3,430
|
|
4,553
|
|
624
|
|
8,924
|
|
12,303
|
|
1,686
|
|
Social entertainment
services and others
|
|
|
3,935
|
|
2,016
|
|
276
|
|
11,990
|
|
8,556
|
|
1,173
|
|
|
|
|
7,365
|
|
6,569
|
|
900
|
|
20,914
|
|
20,859
|
|
2,859
|
|
Cost of
revenues
|
|
|
(4,962)
|
|
(4,227)
|
|
(579)
|
|
(14,588)
|
|
(13,705)
|
|
(1,878)
|
|
Gross
profit
|
|
|
2,403
|
|
2,342
|
|
321
|
|
6,326
|
|
7,154
|
|
981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(245)
|
|
(219)
|
|
(30)
|
|
(878)
|
|
(642)
|
|
(88)
|
|
General and
administrative expenses
|
|
|
(1,192)
|
|
(1,049)
|
|
(144)
|
|
(3,318)
|
|
(3,110)
|
|
(426)
|
|
Total operating
expenses
|
|
|
(1,437)
|
|
(1,268)
|
|
(174)
|
|
(4,196)
|
|
(3,752)
|
|
(514)
|
|
Interest
income
|
|
|
186
|
|
273
|
|
37
|
|
487
|
|
775
|
|
106
|
|
Other gains,
net
|
|
|
109
|
|
78
|
|
11
|
|
438
|
|
168
|
|
23
|
|
Operating
profit
|
|
|
1,261
|
|
1,425
|
|
195
|
|
3,055
|
|
4,345
|
|
596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net profit of
investments accounted for
using equity method
|
|
|
8
|
|
49
|
|
7
|
|
22
|
|
107
|
|
15
|
|
Finance cost
|
|
|
(24)
|
|
(35)
|
|
(5)
|
|
(77)
|
|
(111)
|
|
(15)
|
|
Profit before income
tax
|
|
|
1,245
|
|
1,439
|
|
197
|
|
3,000
|
|
4,341
|
|
595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(152)
|
|
(176)
|
|
(24)
|
|
(366)
|
|
(530)
|
|
(73)
|
|
Profit for the
period
|
|
|
1,093
|
|
1,263
|
|
173
|
|
2,634
|
|
3,811
|
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,061
|
|
1,168
|
|
160
|
|
2,526
|
|
3,614
|
|
495
|
|
Non-controlling
interests
|
|
|
32
|
|
95
|
|
13
|
|
108
|
|
197
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.33
|
|
0.37
|
|
0.05
|
|
0.78
|
|
1.16
|
|
0.16
|
|
Diluted
|
|
|
0.33
|
|
0.37
|
|
0.05
|
|
0.78
|
|
1.14
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares
equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.67
|
|
0.75
|
|
0.10
|
|
1.57
|
|
2.31
|
|
0.32
|
|
Diluted
|
|
|
0.66
|
|
0.74
|
|
0.10
|
|
1.55
|
|
2.28
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,176,110,236
|
|
3,134,975,498
|
|
3,134,975,498
|
|
3,224,870,392
|
|
3,127,809,736
|
|
3,127,809,736
|
|
Diluted
|
|
|
3,206,799,580
|
|
3,173,371,472
|
|
3,173,371,472
|
|
3,255,991,564
|
|
3,172,090,075
|
|
3,172,090,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,588,055,118
|
|
1,567,487,749
|
|
1,567,487,749
|
|
1,612,435,196
|
|
1,563,904,868
|
|
1,563,904,868
|
|
Diluted
|
|
|
1,603,399,790
|
|
1,586,685,736
|
|
1,586,685,736
|
|
1,627,995,782
|
|
1,586,045,038
|
|
1,586,045,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
(in millions, except
per share data)
|
|
(in millions, except
per share data)
|
|
Profit for the
period
|
|
|
1,093
|
|
1,263
|
|
173
|
|
2,634
|
|
3,811
|
|
522
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising
from business acquisitions or combinations*
|
|
|
130
|
|
101
|
|
14
|
|
372
|
|
334
|
|
46
|
|
Share-based
compensation
|
|
|
226
|
|
185
|
|
25
|
|
656
|
|
553
|
|
76
|
|
Gains from
investments**
|
|
|
-
|
|
(3)
|
|
(0)
|
|
(141)
|
|
(30)
|
|
(4)
|
|
Income tax
effects***
|
|
|
(38)
|
|
(43)
|
|
(6)
|
|
(106)
|
|
(123)
|
|
(17)
|
|
Non-IFRS Net
Profit
|
|
|
1,411
|
|
1,503
|
|
206
|
|
3,415
|
|
4,545
|
|
623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,379
|
|
1,408
|
|
193
|
|
3,307
|
|
4,348
|
|
596
|
|
Non-controlling
interests
|
|
|
32
|
|
95
|
|
13
|
|
108
|
|
197
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.43
|
|
0.45
|
|
0.06
|
|
1.03
|
|
1.39
|
|
0.19
|
|
Diluted
|
|
|
0.43
|
|
0.44
|
|
0.06
|
|
1.02
|
|
1.37
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.87
|
|
0.90
|
|
0.12
|
|
2.05
|
|
2.78
|
|
0.38
|
|
Diluted
|
|
|
0.86
|
|
0.89
|
|
0.12
|
|
2.03
|
|
2.74
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,176,110,236
|
|
3,134,975,498
|
|
3,134,975,498
|
|
3,224,870,392
|
|
3,127,809,736
|
|
3,127,809,736
|
|
Diluted
|
|
|
3,206,799,580
|
|
3,173,371,472
|
|
3,173,371,472
|
|
3,255,991,564
|
|
3,172,090,075
|
|
3,172,090,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,588,055,118
|
|
1,567,487,749
|
|
1,567,487,749
|
|
1,612,435,196
|
|
1,563,904,868
|
|
1,563,904,868
|
|
Diluted
|
|
|
1,603,399,790
|
|
1,586,685,736
|
|
1,586,685,736
|
|
1,627,995,782
|
|
1,586,045,038
|
|
1,586,045,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents the
amortization of identifiable assets, including intangible assets
such as domain name, trademark, copyrights, supplier resources,
corporate customer relationships and non-compete agreement
etc., and fair value adjustment on music content (i.e., signed
contracts obtained for the rights to access to the music contents
for which the amount was amortized over the contract period),
resulting from business acquisitions or combination.
|
|
** 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
income tax effects of Non-IFRS adjustments.
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED BALANCE
SHEET
|
|
|
|
|
|
|
|
|
|
As at December 31,
2022
|
|
As at September 30,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
323
|
|
436
|
|
60
|
Land use
rights
|
|
2,480
|
|
2,456
|
|
337
|
Right-of-use
assets
|
|
398
|
|
390
|
|
53
|
Intangible
assets
|
|
2,368
|
|
2,136
|
|
293
|
Goodwill
|
|
19,493
|
|
19,542
|
|
2,678
|
Investments accounted
for using equity method
|
|
4,330
|
|
4,370
|
|
599
|
Financial assets at
fair value through other comprehensive income
|
3,168
|
|
5,502
|
|
754
|
Other
investments
|
|
304
|
|
321
|
|
44
|
Prepayments, deposits
and other assets
|
|
709
|
|
580
|
|
79
|
Deferred tax
assets
|
|
347
|
|
375
|
|
51
|
Term
deposits
|
|
6,530
|
|
8,769
|
|
1,202
|
|
|
40,450
|
|
44,877
|
|
6,151
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
14
|
|
5
|
|
1
|
Accounts
receivable
|
|
2,670
|
|
2,502
|
|
343
|
Prepayments, deposits
and other assets
|
|
2,958
|
|
3,338
|
|
458
|
Other
investments
|
|
37
|
|
37
|
|
5
|
Term
deposits
|
|
11,291
|
|
9,806
|
|
1,344
|
Restricted
Cash
|
|
34
|
|
10
|
|
1
|
Cash and cash
equivalents
|
|
9,555
|
|
12,381
|
|
1,697
|
|
|
26,559
|
|
28,079
|
|
3,849
|
|
|
|
|
|
|
|
Total
assets
|
|
67,009
|
|
72,956
|
|
9,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity attributable
to equity holders of the
Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in
capital
|
|
36,456
|
|
36,595
|
|
5,016
|
Shares held for share
award schemes
|
|
(202)
|
|
(297)
|
|
(41)
|
Treasury
shares
|
|
(6,349)
|
|
(6,539)
|
|
(896)
|
Other
reserves
|
|
6,140
|
|
8,507
|
|
1,166
|
Retained
earnings
|
|
12,052
|
|
15,666
|
|
2,147
|
|
|
48,099
|
|
53,934
|
|
7,392
|
Non-controlling
interests
|
|
1,028
|
|
1,234
|
|
169
|
|
|
|
|
|
|
|
Total
equity
|
|
49,127
|
|
55,168
|
|
7,561
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payables
|
|
5,536
|
|
5,712
|
|
783
|
Other payables and
other liabilities
|
|
6
|
|
-
|
|
-
|
Deferred tax
liabilities
|
|
211
|
|
206
|
|
28
|
Lease
liabilities
|
|
306
|
|
320
|
|
44
|
Deferred
revenue
|
|
106
|
|
137
|
|
19
|
|
|
6,165
|
|
6,375
|
|
874
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
4,998
|
|
5,050
|
|
692
|
Other payables and
other liabilities
|
|
4,022
|
|
3,204
|
|
439
|
Current tax
liabilities
|
|
404
|
|
491
|
|
67
|
Lease
liabilities
|
|
123
|
|
113
|
|
15
|
Deferred
revenue
|
|
2,170
|
|
2,555
|
|
350
|
|
|
11,717
|
|
11,413
|
|
1,564
|
|
|
|
|
|
|
|
Total
liabilities
|
|
17,882
|
|
17,788
|
|
2,438
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
67,009
|
|
72,956
|
|
9,999
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,252
|
|
1,441
|
|
198
|
|
4,987
|
|
5,360
|
|
735
|
Net cash used in
investing activities
|
|
(1,243)
|
|
(1,142)
|
|
(157)
|
|
(338)
|
|
(1,670)
|
|
(229)
|
Net cash used in
financing activities
|
|
(1,668)
|
|
(849)
|
|
(116)
|
|
(3,036)
|
|
(962)
|
|
(132)
|
Net (decrease)/increase
in cash and cash equivalents
|
|
(1,659)
|
|
(550)
|
|
(75)
|
|
1,613
|
|
2,728
|
|
374
|
Cash and cash
equivalents at beginning of the period
|
|
10,044
|
|
12,950
|
|
1,775
|
|
6,591
|
|
9,555
|
|
1,310
|
Exchange differences on
cash and cash equivalents
|
|
197
|
|
(19)
|
|
(3)
|
|
378
|
|
98
|
|
13
|
Cash and cash
equivalents at end of the period
|
|
8,582
|
|
12,381
|
|
1,697
|
|
8,582
|
|
12,381
|
|
1,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-third-quarter-2023-unaudited-financial-results-301986931.html
SOURCE Tencent Music Entertainment
Group