Tencent Music is in a dilemma

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Both revenues declined in the fourth quarter and the whole year, monthly active users and paying users continued to lose, and the single-quarter net profit hit the best level in recent years... This kind of contradiction happened to Tencent Music Group, which announced its financial report on March 21. . Like long videos, the digital music market has been controversial in recent years, and the loss of paying users seems to be expected. It is not easy for Tencent Music to produce the current report card. Compared with international giants such as old rivals Notecase Cloud Music and Spotify, its performance is not inferior.

However the capital market does not buy into this, nor will it be lenient just because the general environment is not good. After the Hong Kong stock market opened on March 22, Tencent Music opened lower and moved lower, falling more than 7% in early trading. Investors phone number list have put heavy pressure on Tencent Music with their own actions. Objectively speaking, Tencent Music’s financial report is not that bad, but it does send some unfavorable signals. Where does the digital music market go from here? Tencent Music wants to know the answer more than onlookers. 01 Saving profits and losing users, Tencent Music is happy in sorrow The latest financial report of Tencent Music has both advantages and disadvantages.



Looking at revenue first, it is generally not optimistic, continuing the downward trend in recent quarters. According to the data, Tencent Music’s revenue in the fourth quarter was 7.425 billion yuan, a year-on-year decrease of 2.4%, but slightly higher than the market’s expected 7.344 billion yuan; the total revenue in fiscal year 2022 was 28.34 billion yuan, a year-on-year decrease of 9.3%. Looking at the single-quarter growth curve, its revenue has recorded five consecutive declines: from the fourth quarter of 2021 to the third quarter of last year, year-on-year growth of -8.7%, -15.1%, -13.8% and -5.6%, respectively. From the perspective of revenue structure, online music subscription and other online music business revenues.