Tencent Music Entertainment Group announced on May 27 that Martin Lau has resigned from the firm’s board of directors with immediate effect.
Lau is now the president of Tencent Group, after joining the Tencent Music board of directors in 2016. Apart from his resignation, Tencent Music also announced the appointment of Matthew Cheng as a new board member. Cheng joined Tencent Group in November 2010 and now serves as VP. Since November 2019, he has served as the non-executive director of China Literature Limited, a digital reading company under Tencent.
Cheng is a senior member of the Association of Chartered Certified Accountants and holds a bachelor’s degree in accounting from Hong Kong Polytechnic University. Before joining Tencent, Cheng worked for PricewaterhouseCoopers and China Everbright Technology Co., Ltd.
Tencent Music currently owns QQ Music, KuGou Music, Kuwo Music and WeSing, and it provides online music, audio, karaoke, music-centered livestreaming content and other services.
On May 17, Tencent Music released its first-quarter financial report, indicating a decline in revenue and net profit. The firm’s revenue in Q1 totaled 664 billion yuan ($99.87 million), a year-on-year decrease of 15.1%. Meanwhile, net profit attributable to shareholders was 609 million yuan, down 34% year-on-year.
Specifically, music subscription revenue in Q1 was 1.99 billion yuan, up 17.8% year-on-year, online music service revenue was 2.62 billion yuan, down 4.8% year-on-year, and social entertainment services and other revenue was 4.03 billion yuan, down 20.6% year-on-year.
The number of paid user of Tencent Music’s online music services in Q1 was 80.2 million, an increase of 31.7% compared with the same period last year. The paid rate of online music services was 13.3%, higher than that in Q1 and Q4 of fiscal 2021. It is worth noting that the mobile monthly users of online music services decreased by 1.8% year-on-year to 604 million, and social entertainment monthly users decreased by 27.7% to 162 million.