Tencent Music Entertainment Group (TME), the leading online music and audio entertainment platform in China, on Tuesday announced its unaudited financial results for the fourth quarter and full calendar year of 2021.
In the three-month period ended December 31, 2021, TME’s total revenues were 7.61 billion yuan ($1.19 billion), representing a decrease of 8.7% year-on-year.
Revenues from music subscriptions were 1.95 billion yuan in the quarter, representing 23.5% year-on-year growth. The increase was driven by a strong uptick in music subscription revenues and long-form audio, despite a decrease in revenues from sublicensing, sales of digital albums and advertising.
The number of users paying for TME’s music streaming services in Q4 reached 76.2 million, increasing by 36.1% year-on-year. The ratio of paying users was 12.4%, up from 11.2% in the third quarter and 9.0% in the fourth quarter of the previous year.
Net profit of the company was 577 million yuan and net profit attributable to equity holders of the company was 536 million yuan. As of the end of the fourth quarter, the number of independent musicians on the Tencent Musician Platform reached 300,000.
In the full year ended December 31, 2021, TME’s total revenues increased by 7.2% year-on-year to reach 31.24 billion yuan. Revenues from music subscriptions were 7.33 billion yuan, representing year-on-year growth of 31.9%.
In 2021, net profit of the company was 3.22 billion yuan and net profit attributable to equity holders of the company was 3.03 billion yuan.
“In 2021, we are pleased to see our investment in original music production starting to pay off, as well as an increasing number of indie musicians finding a home on our Tencent Musician Platform. Based on the confidence we have in the future of our dual engine content-and-platform strategy, we have completed over 50% of the $1 billion share repurchase program announced last year, and plan to complete the rest of the program throughout this year,” said Cussion Pang, Executive Chairman of TME.
“We are pursuing a secondary listing on the Main Board of the Hong Kong Stock Exchange through a listing by way of introduction (which is a direct listing without any offering of new shares), subject to regulatory approvals,” Pang added.
In terms of new progress this year, TME mentioned in the report that in March 2022, it entered into a definitive agreement to acquire a controlling stake in M&E Mobile Limited, which currently operates Japan’s leading karaoke app, Pokekara, to enrich its karaoke experiences as well as deepen its reach in international markets.