SHENZHEN, China, May 16, 2022 /PRNewswire/ -- Tencent Music
Entertainment Group ("TME," or the "Company") (NYSE: TME), the
leading online music and audio entertainment platform in
China, today announced its
unaudited financial results for the first quarter ended
March 31, 2022.
Financial and Operational Highlights
In the three months ended March 31,
2022:
- Net profit of the Company was RMB649 million (US$102
million). Non-IFRS net profit of the
Company[1] was
RMB939 million (US$148 million), representing a 7.6% increase on
a sequential basis.
- Total revenues were RMB6.64
billion (US$1.05 billion),
representing a 15.1% year-over-year decrease.
- Revenues from music subscriptions were RMB1.99 billion (US$314
million), representing an increase of 17.8%
year-over-year.
- Online music paying users reached 80.2 million,
increasing by 31.7% year-over-year. On a sequential basis, the
number of online music paying users grew by 4.0 million. Paying
ratio was 13.3%, up from 12.4% and 9.9% in the fourth and first
quarter of 2021, respectively.
- Net profit attributable to equity holders of the Company
was RMB609 million (US$96 million) and Non-IFRS net profit
attributable to equity holders of the Company[1] was RMB899 million
(US$142 million).
"We delivered a healthy 18% year-over-year growth in
subscription revenues with paying users exceeding 80 million in the
first quarter, as supported by our dual engine content-and-platform
strategy. Despite the headwinds in an evolving market
landscape, which resulted in a year-over-year decline in total
revenues, our efforts to optimize cost structure and improve
operating efficiency led to improved profitability
quarter-over-quarter," said Mr. Cussion Pang, Executive Chairman of
TME. "In an era of increasing entertainment choices, the ability to
sustain a competitive advantage is awarded to those who offer users
a differentiated experience. We are encouraged by the increasing
benefits our original content production investments and
Tencent Musician Platform have
brought to our users, musicians and the overall content ecosystem.
With these initiatives, we continue to make critical
investments that align with our long-term strategic goals and
create sustainable value for all our music stakeholders."
"In the first quarter, we continued to build an immersive music
entertainment ecosystem, bringing music lovers innovative
possibilities for how they listen, watch, sing and play. With the
goal of creating a sense of belonging that makes our products a
must-have, we look for ways to address the multi-faceted needs of
diverse user cohorts," said Mr. Ross
Liang, CEO of TME. "In the first quarter, we further
strengthened our cooperation with Tencent's ecosystem in content
production and promotion, with the rewards becoming increasingly
manifest. In addition, our long-form audio continued to gain
traction thanks to differentiated content, and we are working on
improving its monetization efficiency mainly through memberships.
Moving forward, we will continue to make our ecosystem, content,
products and services differentiated and highly specialized. This,
in turn, will help us better serve hundreds of millions of music
lovers, music creators and the music industry as a whole, and
unlock the massive opportunity in front of us," concluded Mr.
Liang.
Recent Operational Highlights
- TME's online music and social entertainment services key
operating metrics[2]
|
1Q22
|
1Q21
|
YoY %
|
Mobile MAU - online
music (million)
|
604
|
615
|
(1.8%)
|
Mobile MAU - social
entertainment (million)
|
162
|
224
|
(27.7%)
|
Paying users - online
music (million)
|
80.2
|
60.9
|
31.7%
|
Paying users - social
entertainment (million)
|
8.3
|
11.3
|
(26.5%)
|
Monthly ARPPU - online
music (RMB)
|
8.3
|
9.3
|
(10.8%)
|
Monthly ARPPU - social
entertainment (RMB)
|
161.8
|
149.7
|
8.1%
|
- The year-over-year decline in online music mobile MAUs was
primarily due to churn of our casual users and reduced marketing
spending required by our more disciplined cost management. However,
online music paying users continued to deliver robust
year-over-year and quarter-over-quarter growth, reaching 80.2
million, which was attributable to our high-quality content and
services, effective promotions, as well as improvement in paying
user loyalty.
- Social entertainment services MAUs and paying users were lower
year-over-year and quarter-over-quarter, affected by industry and
macro headwinds. We will continue to improve our competitiveness
through ongoing product innovations and new initiatives in social
entertainment such as audio live streaming, international expansion
and virtual interactive product offerings.
- We remained committed to strengthening our original
content production capabilities, to systematically create,
evaluate and promote music.
-
- With Xingyao Plan and Galaxy Plan, we empower original content
production by leveraging technology to add value across demo and
singer discovery throughout the phases of production, distribution
and promotion for these original works. In the first quarter, we
delivered dozens of original hit songs to a broad audience,
including "Mirage" and "Drown," two sweeping successes that topped
multiple music charts and both achieved peak daily streams in
excess of 13 million.
- We achieved top rankings for our original content in key
verticals such as gaming, Chinese Ancient Style and pop music. In
the first quarter, we collaborated with Tencent Games' popular titles, including PUBG
Mobile, Honour of Kings, League of Legends: Wild Rift to produce
chart-topping original songs by leading artists such as Hua Chenyu,
Chen Linong, Mao Buyi and Z.TAO.
- Tencent
Musician Platform cultivates budding musicians
by providing them with all-round services to help showcase
their talent and passion.
-
- Established sustainable and diverse monetization models for
musicians, which helps them earn a better living while focusing on
honing their craft, as demonstrated by the distribution of over
RMB200 million from our platform to
musicians during the past 12 months.
- Launched a new behind-the-scenes producer service, with more
than 50 well-known industry professionals and more than 100,000
creators joining in the first quarter, as well as a customized
self-service productivity toolkit to empower musicians to create
and promote their works more efficiently and reach a larger
audience.
- Motivated aspiring talents with diverse creative scenarios and
rich online and offline promotion resources, driving accelerated
professional growth and broader recognition for musicians such as
Liu Shuang and Georgina Qian.
- Our TME Chart serves as a solid music rating
infrastructure, showcasing our commitment to promoting healthy and
sustainable industry development. In the first quarter, we released
the TME Music Chart Annual Review, providing a snapshot of the
Chinese music landscape in 2021 with ratings and reviews of over
1,800 songs and generating a huge wave of social buzz from
professionals and music lovers upon release.
- Our platform strategy embodies our commitment to
continuous product innovations. We are creating a more immersive
user experience with enhancements to our four pillars of music
entertainment: listen, watch, sing and play.
-
- Listen: We were the first in China to launch three advanced listening
functions to improve sound quality and equalize music volume,
delivering a smoother music listening experience. Optimized
algorithms drove a new record high penetration rate of
recommendations in QQ Music by the end of the first quarter. Our
upgraded Music Popularity Index also has considerably strengthened
users' sense of participation.
- Watch: Deepened collaboration with Weixin Video
Accounts to create vibrant music scenes and strengthen our music
promotion capabilities through events such as "Spring Never Ends," a large-scale live charity
concert during the pandemic. Beyond video, our efforts on the
visual front also include the use of graphics and other formats
such as the comment display function and streaming
visualizations.
- Sing: We were the first in the industry to offer
sound tuning without requiring earbuds, as well as cloud-based
sound mixing, which can help substantially improve the sound
effects of songs recorded.
- Play: Upgraded the TMELAND experience and plan to launch
featured events such as virtual avatar concerts in the second
quarter. We also pioneered dedicated virtual rooms for artists and
recently launched virtual rooms for Jay
Chou and Roy Wang, combining
listening with virtual interactions.
- Long-form Audio: We expanded and differentiated our
long-form audio content by enriching our podcast ecosystem and
enhancing our joint content operation with popular IPs. Mid- and
long-tail podcast hosts are flourishing in the TME ecosystem. For
instance, Lao Shi Qi and his audio title "The Northern Time
Raiders" racked up 23 million streams within one month since its
launch.
- We are committed to fulfilling our social
responsibilities. In the first quarter, we initiated an autism
care charity project, "Shape of Music," which featured our first
public welfare digital collectable single, "The Brightest Star"
among others, to advocate for social connections with autism groups
while allowing music to not only be heard but also seen and
treasured through the crossover of different content and art forms
online and offline.
[1] Non-IFRS net profit
and Non-IFRS net profit attributable to equity holders of the
Company was arrived at after excluding the combined effect of
amortization of intangible assets and other assets arising from
acquisitions, share-based compensation expenses, net losses/gains
from investments and income tax effects.
|
[2] For the definitions
of the cited key operating metrics, please refer to the
introduction section in the Company's 2021 20-F filed on April 26,
2022. The monthly ARPPU of social entertainment services is
calculated based on revenues from social entertainment and others,
including advertising services provided on our social entertainment
platforms.
|
First Quarter 2022 Financial Results
Revenues
Total revenues for the first quarter of 2022 decreased by
RMB1.18 billion, or 15.1%, to
RMB6.64 billion (US$1.05 billion) from RMB7.82 billion in the same period of 2021.
- Revenues from online music services for the first quarter of
2022 decreased by 4.8% to RMB2.62
billion (US$413 million) from
RMB2.75 billion in the same period of
2021. Revenues from music subscriptions were RMB1.99 billion (US$314
million), representing a 17.8% growth compared to
RMB1.69 billion in the first quarter
of 2021, primarily due to the increase in the number of paying
users by 31.7%. ARPPU decreased from RMB9.3 in the first quarter of 2021 to
RMB8.3 this quarter. The decrease in
ARPPU was mainly due to promotions offered to attract users. We are
focusing on the quality growth of our subscription revenue while
maintaining a stable ARPPU. Revenues from advertising decreased on
a year-over-year basis due to the impact from industry adjustments
on splash ads and the COVID-19 pandemic in some major cities.
Sublicensing revenues also decreased on a year-over-year basis due
to restructuring of agreements with certain music labels.
- Revenues from social entertainment services and others for the
first quarter of 2022 decreased by 20.6% to RMB4.03 billion (US$635
million) from RMB5.08 billion
in the same period of 2021. On a year-over-year basis, ARPPU
increased by 8.1% in the first quarter of 2022, while paying users
of social entertainment services decreased by 26.5%. The decrease
was mainly due to the impact of evolving macro environment and
increased competition from other pan-entertainment platforms.
Cost of Revenues
Cost of revenues for the first quarter of 2022 decreased by
10.7% to RMB4.78 billion
(US$755 million) from RMB5.36 billion in the same period of 2021. The
decrease was primarily due to decrease in revenue sharing fees and
agency fees resulting from decrease in revenues from social
entertainment services and advertising services while the revenue
sharing ratio remained stable on a year over year
basis. Content costs also decreased as a result of improved
efficiency.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2022 decreased by 24.6% to
RMB1.86 billion (US$293 million) from RMB2.47 billion in the same period of 2021. Gross
margin for the first quarter of 2022 decreased by 3.5% to 28.0%
from 31.5% in the same period of 2021. This decrease in gross
margin was primarily because revenue from online music
accounted for a higher percentage of revenue, which typically has a
lower gross margin.
Operating Expenses for the Period
Total operating expenses for the first quarter of 2022 decreased
by 13.7% to RMB1.34 billion
(US$212 million) from RMB1.56 billion in the same period of 2021.
Operating expenses as a percentage of total revenues slightly
increased to 20.2% in the first quarter of 2022 from 19.9% in the
same period of 2021. After excluding the impact from the
post-acquisition awards, share-based compensation expenses and
amortization of intangible assets arising from the acquisition of
Lazy Audio, operating expenses as a percentage of total revenues
would have decreased by 0.4% year-over-year.
- Selling and marketing expenses were RMB330 million (US$52
million), representing a decrease of 50.9% year-over-year
from RMB672 million in the same
period of 2021. This decrease was primarily due to tighter control
over marketing expenses and optimization of the overall promotion
structure to improve operating efficiency. We continued to
effectively manage external promotion channels' efficiency and
better utilize internal traffic to attract users and promote our
brand.
- General and administrative expenses were RMB1.01 billion (US$160
million), representing an increase of 14.6% year-over-year
from RMB883 million in the same
period of 2021. The increase was mainly due to increased investment
in research and development to expand our competitive advantages in
product and technology innovations. Meanwhile, we are closely
monitoring employee related expenses and improving headcount
efficiency. Post-acquisition awards, share-based compensation
expenses and amortization of intangible assets arising from the
acquisition of Lazy Audio also contributed to the increase in
general and administrative expenses.
Operating Profit for the Period
Operating profit was RMB749
million (US$118 million) in
the first quarter of 2022, compared to an operating profit of
RMB1.16 billion in the same period of
2021.
Income Tax Expenses
Effective tax rate in the first quarter of 2022 was 12.2%,
compared to 11.5% in the same period of 2021. The increase in
effective tax rate was mainly because some of our entities are
entitled to different tax benefits in 2021 and 2022.
Net Profit and Non-IFRS Net Profit for the Period
Net profit attributable to equity holders of the Company for the
first quarter of 2022 was RMB609
million (US$96 million),
compared to a net profit of RMB926
million in the same period of 2021. Non-IFRS net profit
attributable to equity holders of the Company was RMB899 million (US$142
million) for the first quarter of 2022, compared to
RMB1.18 billion in the same period of
2021. Please refer to the section in this press release titled
"Non-IFRS Financial Measure" for details.
Earnings per ADS
Basic and diluted earnings per American Depositary Shares
("ADS") were RMB0.37 (US$0.06) and RMB0.37(US$0.06),
respectively, for the first quarter of 2022. Non-IFRS basic and
diluted earnings per ADS were RMB0.55
(US$0.09) and RMB0.54 (US$0.09),
respectively, for the first quarter of 2022. During the first
quarter of 2022, the Company had weighted averages of 1.64 billion
basic and 1.65 billion diluted ADSs outstanding, respectively. Each
ADS represents two of the Company's Class A ordinary shares.
Cash, Cash Equivalents, Term Deposits and Short-term
Investments
As of March 31, 2022, the combined
balance of the Company's cash, cash equivalents, term deposits and
short-term investments amounted to RMB25.93
billion (US$4.09 billion),
compared to RMB24.69 billion as of
December 31, 2021. The increase in
cash, cash equivalents, term deposits and short-term investments
was primarily due to cash flows generated from operations of
RMB2.49 billion (US$393 million), partially offset by cash used in
the purchase of land use right and share repurchases. Such combined
balance was also affected by the change in the exchange rate
of RMB to USD at different balance sheet dates. The exchange rate
was 6.3393 to 1 on March 31,
2022.
Share Repurchase Program
Pursuant to the 2021 Share Repurchase Program announced on
March 28, 2021, as of May 13, 2022, we have repurchased approximately
73.3 million ADSs from the open market with cash for a total
consideration of approximately US$674
million.
Conference Call Information
TME's management will hold a conference call on Monday, May
16, 2022, at 8:00 P.M. Eastern Time or 8:00
A.M. Beijing Time on Tuesday, May 17, 2022, to discuss
its financial results. Listeners may access the call by dialing the
following numbers:
United States Toll
Free:
|
+1-888-317-6003
|
International:
|
+1-412-317-6061
|
Mainland China Toll
Free:
|
400-120-6115
|
Hong Kong, China Toll
Free:
|
800-963-976
|
Access Code:
|
2636670
|
The replay will be accessible through May 23, 2022, by
dialing the following numbers:
United States Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Access Code:
|
4475331
|
A live and archived webcast of the conference call will also be
available on the Company's investor relations website at
https://ir.tencentmusic.com/.
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 RMB6.3393 to US$1.00, the noon buying rate in effect on
March 31, 2022, 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 acquisitions, share-based compensation expenses, net
losses/gains from investments and 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.
About Tencent Music
Entertainment
Tencent Music Entertainment Group
(NYSE: TME) 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 use technology to
elevate the role of music in people's lives by enabling them to
create, enjoy, share and interact with music. 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. 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
March 31,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
(in millions, except
per share data)
|
Revenues
|
|
|
|
|
|
|
|
Online music
services
|
|
|
2,749
|
|
2,616
|
|
413
|
Social entertainment
services and others
|
|
|
5,075
|
|
4,028
|
|
635
|
|
|
|
7,824
|
|
6,644
|
|
1,048
|
Cost of
revenues
|
|
|
(5,358)
|
|
(4,784)
|
|
(755)
|
Gross
profit
|
|
|
2,466
|
|
1,860
|
|
293
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(672)
|
|
(330)
|
|
(52)
|
General and
administrative expenses
|
|
|
(883)
|
|
(1,012)
|
|
(160)
|
Total operating
expenses
|
|
|
(1,555)
|
|
(1,342)
|
|
(212)
|
Interest
income
|
|
|
154
|
|
150
|
|
24
|
Other gains,
net
|
|
|
99
|
|
81
|
|
13
|
Operating
profit
|
|
|
1,164
|
|
749
|
|
118
|
|
|
|
|
|
|
|
|
Share of net loss of
investments accounted for
using equity method
|
|
|
(27)
|
|
20
|
|
3
|
Finance cost
|
|
|
(31)
|
|
(30)
|
|
(5)
|
Profit before income
tax
|
|
|
1,106
|
|
739
|
|
117
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(127)
|
|
(90)
|
|
(14)
|
Profit for the
period
|
|
|
979
|
|
649
|
|
102
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
926
|
|
609
|
|
96
|
Non-controlling
interests
|
|
|
53
|
|
40
|
|
6
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class
B ordinary shares
|
|
|
|
|
|
|
|
Basic
|
|
|
0.28
|
|
0.19
|
|
0.03
|
Diluted
|
|
|
0.27
|
|
0.18
|
|
0.03
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares
equal to 1 ADS)
|
|
|
|
|
|
|
|
Basic
|
|
|
0.55
|
|
0.37
|
|
0.06
|
Diluted
|
|
|
0.54
|
|
0.37
|
|
0.06
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
Basic
|
|
|
3,354,845,726
|
|
3,273,281,390
|
|
3,273,281,390
|
Diluted
|
|
|
3,403,590,157
|
|
3,302,130,101
|
|
3,302,130,101
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS
computation
|
|
|
|
|
|
|
|
Basic
|
|
|
1,677,422,863
|
|
1,636,640,695
|
|
1,636,640,695
|
Diluted
|
|
|
1,701,795,078
|
|
1,651,065,051
|
|
1,651,065,051
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2021
|
|
2022
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
(in millions, except
per share data)
|
|
Profit for the
period
|
|
|
979
|
|
649
|
|
102
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising
from acquisitions*
|
|
|
110
|
|
121
|
|
19
|
|
Share-based
compensation
|
|
|
162
|
|
204
|
|
32
|
|
Losses/(gains) from investments**
|
|
|
21
|
|
(2)
|
|
-
|
|
Income tax
effects***
|
|
|
(37)
|
|
(33)
|
|
(5)
|
|
Non-IFRS Net
Profit
|
|
|
1,235
|
|
939
|
|
148
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,182
|
|
899
|
|
142
|
|
Non-controlling
interests
|
|
|
53
|
|
40
|
|
6
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.35
|
|
0.27
|
|
0.04
|
|
Diluted
|
|
|
0.35
|
|
0.27
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.70
|
|
0.55
|
|
0.09
|
|
Diluted
|
|
|
0.69
|
|
0.54
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,354,845,726
|
|
3,273,281,390
|
|
3,273,281,390
|
|
Diluted
|
|
|
3,403,590,157
|
|
3,302,130,101
|
|
3,302,130,101
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,677,422,863
|
|
1,636,640,695
|
|
1,636,640,695
|
|
Diluted
|
|
|
1,701,795,078
|
|
1,651,065,051
|
|
1,651,065,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents the
amortization of identifiable assets, including intangible assets
and prepayments for music content, resulting
from acquisitions
|
** Including the net
losses/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,
2021
|
|
As at March 31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant
and equipment
|
|
243
|
|
247
|
|
39
|
Land use
rights
|
|
1,495
|
|
2,535
|
|
400
|
Right-of-use
assets
|
|
283
|
|
268
|
|
42
|
Intangible
assets
|
|
2,829
|
|
2,692
|
|
425
|
Goodwill
|
|
19,121
|
|
19,126
|
|
3,017
|
Investments
accounted for using equity method
|
|
3,599
|
|
3,652
|
|
576
|
Financial assets
at fair value through other comprehensive income
|
7,302
|
|
4,904
|
|
774
|
Other
investments
|
|
199
|
|
348
|
|
55
|
Prepayments,
deposits and other assets
|
|
743
|
|
675
|
|
106
|
Deferred tax
assets
|
|
346
|
|
357
|
|
56
|
Term
deposits
|
|
4,303
|
|
5,933
|
|
936
|
|
|
40,463
|
|
40,737
|
|
6,426
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
24
|
|
23
|
|
4
|
Accounts
receivable
|
|
3,610
|
|
2,513
|
|
396
|
Prepayments,
deposits and other assets
|
|
2,731
|
|
2,690
|
|
424
|
Other
investments
|
|
37
|
|
37
|
|
6
|
Short-term
investments
|
|
1,029
|
|
1,088
|
|
172
|
Term
deposits
|
|
12,769
|
|
10,556
|
|
1,665
|
Cash and cash
equivalents
|
|
6,591
|
|
8,353
|
|
1,318
|
|
|
26,791
|
|
25,260
|
|
3,985
|
|
|
|
|
|
|
|
Total
assets
|
|
67,254
|
|
65,997
|
|
10,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity attributable
to equity holders of the
Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional
paid-in capital
|
|
36,238
|
|
36,187
|
|
5,708
|
Shares held for
share award schemes
|
|
(183)
|
|
(186)
|
|
(29)
|
Treasury
shares
|
|
(3,660)
|
|
(3,664)
|
|
(578)
|
Other
reserves
|
|
3,726
|
|
1,290
|
|
203
|
Retained
earnings
|
|
14,194
|
|
14,803
|
|
2,335
|
|
|
50,317
|
|
48,432
|
|
7,640
|
Non-controlling
interests
|
|
738
|
|
789
|
|
124
|
|
|
|
|
|
|
|
Total
equity
|
|
51,055
|
|
49,221
|
|
7,764
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payables
|
|
5,062
|
|
5,041
|
|
795
|
Accounts
payable
|
|
93
|
|
93
|
|
15
|
Other payables
and other liabilities
|
|
32
|
|
22
|
|
3
|
Deferred tax
liabilities
|
|
271
|
|
254
|
|
40
|
Lease
liabilities
|
|
205
|
|
199
|
|
31
|
Deferred
revenue
|
|
86
|
|
105
|
|
17
|
|
|
5,749
|
|
5,714
|
|
901
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
4,329
|
|
5,179
|
|
817
|
Other payables
and other liabilities
|
|
3,832
|
|
3,500
|
|
552
|
Current tax
liabilities
|
|
363
|
|
425
|
|
67
|
Lease
liabilities
|
|
92
|
|
86
|
|
14
|
Deferred
revenue
|
|
1,834
|
|
1,872
|
|
295
|
|
|
10,450
|
|
11,062
|
|
1,745
|
|
|
|
|
|
|
|
Total
liabilities
|
|
16,199
|
|
16,776
|
|
2,646
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
67,254
|
|
65,997
|
|
10,411
|
|
|
|
|
|
|
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,878
|
|
2,494
|
|
393
|
Net cash used in
investing activities
|
|
(2,382)
|
|
(329)
|
|
(52)
|
Net cash used in
financing activities
|
|
(372)
|
|
(395)
|
|
(62)
|
Net
(decrease)/increase in cash and cash equivalents
|
|
(876)
|
|
1,770
|
|
279
|
Cash and cash
equivalents at beginning of the period
|
|
11,128
|
|
6,591
|
|
1,040
|
Exchange differences on
cash and cash equivalents
|
|
22
|
|
(8)
|
|
(1)
|
Cash and cash
equivalents at end of the period
|
|
10,274
|
|
8,353
|
|
1,318
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-first-quarter-2022-unaudited-financial-results-301548109.html
SOURCE Tencent Music Entertainment
Group