SHENZHEN, China, Aug. 15,
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 second
quarter ended June 30, 2022.
Financial and Operational Highlights
In the three months ended June 30,
2022:
- Net profit of the Company was RMB892 million (US$133
million). Non-IFRS net profit of the
Company[1] was RMB1.07
billion (US$159 million),
representing an 8.3% decrease year-over-year and a 13.4% increase
on a sequential basis.
- Total revenues were RMB6.91
billion (US$1.03 billion),
representing a 13.8% year-over-year decrease and a 3.9% increase on
a sequential basis.
- Revenues from music subscriptions were RMB2.11 billion (US$315
million), representing an increase of 17.6% year-over-year.
Paying users reached 82.7 million, increasing by 24.9%
year-over-year. On a sequential basis, the number of online music
paying users grew by 2.5 million.
- Net profit attributable to equity holders of the Company
was RMB856 million (US$128 million) and Non-IFRS net profit
attributable to equity holders of the Company[1] was
RMB1.03 billion (US$154 million).
"Amidst a complex and evolving environment, macro headwinds
continued to affect our total revenue growth. However, growth in
subscription revenue remained resilient, increasing by 18%
year-over-year in the second quarter, demonstrating our success in
executing a balanced approach of driving growth in both paying
users and ARPPU. Meanwhile, our cost optimization and operating
efficiency enhancements continued to bear fruit, resulting in
margin improvements during the quarter," said Mr. Cussion Pang,
Executive Chairman of TME. "In June
2022, we celebrated the first anniversary of launching our
dual engine content-and-platform strategy, which has continued to
empower our increasingly vibrant music ecosystem. Through original
content production and our Tencent
Musician Platform, we are not only enhancing the scale, quality and
market appeal of our content, but also nurturing creators and
connecting them with music lovers. We will continue to empower
music creators by helping them to unlock both the cultural and
commercial value embedded in music. To demonstrate our confidence
in the Company's prospects, by the end of the second quarter, we
had completed over $700 million of
the $1 billion share repurchase
program announced last year, and plan to complete the rest of the
program throughout the rest of the year."
"Driving product and technological innovation is always our top
priority. In the second quarter, we continued to upgrade the
immersive music experience across our four pillars – listen, watch,
sing and play – enhancing each category to provide our users with a
stage to express their musical tastes and build their sense of
identity on TME's platform. Particularly, QQ Music and WeSing
launched major version upgrades to bring dynamic visuals and a 3D
avatar functionality, respectively, to our users," said Mr.
Ross Liang, CEO of TME. "As a
natural extension of music, our long-form audio continued to round
out our music portfolio while further differentiating our content.
We also strengthened our partnership with Tencent's ecosystem in
key areas, including content production, promotion and
monetization. Furthermore, through our innovative model that
combines music with public welfare, we organized a number of
philanthropic events in the second quarter, employing the
emotional power of music to advance our social commitment. As we
move forward, we will continue to leverage our business and product
innovations to grow the digital music ecosystem and support the
sustained, healthy development of China's music industry," concluded Mr.
Liang.
Recent Operational Highlights
- TME's online music and social entertainment services key
operating metrics[2]
|
2Q22
|
2Q21
|
YoY%
|
Mobile MAU - online
music (million)
|
593
|
623
|
(4.8 %)
|
Mobile MAU - social
entertainment (million)
|
166
|
209
|
(20.6 %)
|
Paying users - online
music (million)
|
82.7
|
66.2
|
24.9 %
|
Paying users - social
entertainment (million)
|
7.9
|
11.0
|
(28.2 %)
|
Monthly ARPPU -
online music (RMB)
|
8.5
|
9.0
|
(5.6 %)
|
Monthly ARPPU -
social entertainment (RMB)
|
169.9
|
153.3
|
10.8 %
|
-
-
- The year-over-year decline in online music mobile MAUs was
primarily due to reduced marketing spending. However, subscription
revenue continued to deliver robust year-over-year and
quarter-over-quarter growth along with paying user growth and a
sequential rebound of ARPPU, driven by expanded sales channels and
paying user loyalty due to the range of high-quality content and
services we provide, as well as moderated promotions.
- Social entertainment services MAUs sequentially improved while
paying users declined year-over-year due to macro headwinds. We
will continue to improve our competitiveness through ongoing
product innovations and new initiatives in social entertainment,
such as audio live streaming and virtual interactive product
offerings.
- Our content strategy continued to strengthen the scale,
quality and appeal of our content offerings.
-
- Deepened content partnership, to
enrich user experience and explore additional monetization avenues
in digital music:
-
- We launched Jay Chou's digital
album "Greatest Works of Art" with copies sold exceeded 6 million
by the end of July, marking another blockbuster on our
platform.
- We entered into strategic partnerships with leading labels and
artists across the Greater China
region, such as Time Fengjun Entertainment (the music label for
TFBOYS and Teens in Times), avex China and the talented female artist XIN Liu
(Yuxin Liu), where our platform has
a head start period on their latest music, customized artist
merchandise or unique artist-fan interaction events.
- Joined hands with YH Entertainment Group to launch Artist
Subscription packages for its 13 renowned artists such as Meng
Meiqi and Justin Huang, providing
customized audio and video content for their subscribing fans.
- Original content production
capabilities, to systematically create, evaluate and
promote music:
-
- We continued to invest in creating high-quality original
content, notable examples in the second quarter included "Blessing
of Three Lifetimes" by Hai Lai A Mu, which dominated major music
charts and generated social media buzz comprising over 2.5 billion
views and 350 million streams since its launch in May, as well as
15 chart-topping game songs we produced in collaboration with
Tencent's popular game titles and "Time to Shine," the first
Chinese theme song to appear in the NBA finals.
- Leveraging our proprietary AI tools and PDM predictive model
technologies, we launched a smart music assistant that enables more
efficient decision making at key stages of the music production
process, such as demo evaluation.
- Tencent Musician
Platform, an all-round service platform that helps indie
musicians showcase their talent and passion in music:
-
- We continued to empower musicians with a wealth of online and
offline promotion capabilities and monetization avenues. For
example, we introduced a new service to easily mass distribute
musical works globally to over 150 popular platforms, which has
already brought 190,000 songs by over 10,000 musicians to overseas
audiences as of the end of the second quarter.
- TME Live presented an array of online and offline
live performances to enrich our users' experience:
-
- In the second quarter, in addition to online live concerts for
Roy Wang, among others, we presented
Leslie Cheung and Jay Chou's AI-enhanced recorded concerts online.
These two huge hits accumulated over 100 million unique viewers
within the Tencent ecosystem and
social media buzz of 6 billion views.
- As we have strengthened our advertising monetization with
additional avenues, we successfully attracted well-known brands
such as Sprite, Beijing-Hyundai and Pepsi to sponsor a variety of
customized online and offline live events recently, attracting
participation by dozens of popular artists and aspiring
musicians.
- Our platform strategy embodies our commitment to
continuous product innovations through our four pillars of
entertainment: listen, watch, sing and play, deepening users'
recognition of and connection with our products.
-
- Listen: We added more refined
features to our products for a more professional and personal music
streaming experience in the second quarter. Highlighted new
features include our pioneering synchronous lyrics display
functionality, a premium sound feature which supports real-time
sound quality enhancement, and a number of new search features to
bolster music discovery efficiency.
- Watch: We continued to work with
Weixin Video Accounts to attract a broader user base and boost our
promotion capabilities for musicians. New visualization updates in
the second quarter include customized dynamic images on personal
playlists, our "Focus Station" featuring video elements for
studying, sleeping aid and meditation listening scenarios, and a
vinyl record player interface that strengthens the visual
experience on our apps.
- Sing: WeSing launched a major version
upgrade in July to offer "KK Show," our 3D avatar functionality,
which can serve as users' identity card in the virtual world, as
well as a brand-new AI-based voice synthesis singing tool. Kugou
also unveiled its first AI singer in the voice of Gen Z celebrity
Yang Chaoyue, enabling users to customize and synthesize songs with
just one click.
- Play: Teaming up with Adidas Originals, TMELAND
hosted China's first virtual
avatar rap concert, attracting over 7 million views, a new record
in viewership for TMELAND. A total of 13 stars have settled in our
VR album rooms, including singer and actress Cyndi Wang and musician Liu Shuang, who joined in the second
quarter.
- Long-form Audio: We continued to differentiate our
offering with a wealth of high-quality long-form audio
content, enriching popular vertical content such as sleeping aid in
the second quarter. We have also been deepening our collaborations
with Tencent Video to successfully
promote popular audiobooks and associated IPs such as the third
season of "Martial Universe" and "Who Rules the World."
- We are committed to fulfilling our social
responsibilities. In the second quarter, we worked with
Tencent to launch the Little Red
Flower Charity Concert to deliver a heartwarming live concert to
children with special needs. We also created environmental
awareness around the marine ecosystem through a special public
welfare concert for World Oceans Day in partnership with La
Mer.
[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. Online music mobile MAUs for a given month refers to the
sum of mobile MAUs of our music products, including QQ Music, Kugou
Music and Kuwo Music, for that month; duplicate access of different
services by the same device is not eliminated from the
calculation.
|
Second Quarter 2022 Financial Results
Revenues
Total revenues for the second quarter of 2022 decreased by
RMB1.10 billion, or 13.8%, to
RMB6.91 billion (US$1.03 billion) from RMB8.01 billion in the same period of 2021.
- Revenues from online music services for the second quarter of
2022 decreased by 2.4% to RMB2.88
billion (US$430 million) from
RMB2.95 billion in the same period of
2021. Revenues from music subscriptions were RMB2.11 billion (US$315
million), representing a 17.6% growth compared to
RMB1.79 billion in the second quarter
of 2021, primarily due to the increase in the number of paying
users by 24.9%. ARPPU decreased from RMB9.0 in the second quarter of 2021 to
RMB8.5 this quarter and improved by
2.4% sequentially mainly due to the fact that we offered more
promotions to attract users in the past several quarters since 2021
and we are more focused on the quality growth of our subscription
revenue while maintaining a healthy ARPPU since last quarter.
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
second quarter of 2022 decreased by 20.4% to RMB4.03 billion (US$601
million) from RMB5.06 billion
in the same period of 2021. On a year-over-year basis, ARPPU
increased by 10.8% in the second quarter of 2022, while paying
users of social entertainment services decreased by 28.2%. The
decrease was mainly due to the impact of evolving macro environment
and increased competition from other platforms.
Cost of Revenues
Cost of revenues for the second quarter of 2022 decreased by
13.1% to RMB4.84 billion
(US$723 million) from RMB5.57 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 on a year over year
basis.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2022 decreased by 15.3%
to RMB2.06 billion (US$308 million) from RMB2.44 billion in the same period of 2021. Gross
margin for the second quarter of 2022 slightly decreased by 0.5% to
29.9% from 30.4% in the same period of 2021. This decrease in gross
margin was primarily because the decrease in our total revenues
outpaced the decrease in our total cost of revenues as some of them
remained fixed in nature. We are taking
measures to manage costs effectively and improve overall
efficiency.
Operating Expenses for the Period
Total operating expenses for the second quarter of 2022
decreased by 15.5% to RMB1.42 billion
(US$212 million) from RMB1.68 billion in the same period of 2021.
Operating expenses as a percentage of total revenues decreased by
0.4% to 20.5% in the second quarter of 2022 from 20.9% in the same
period of 2021. After excluding the impact from the expenses
related to our application for secondary listing, operating
expenses as a percentage of total revenues would have decreased by
1% year-over-year.
- Selling and marketing expenses were RMB303 million (US$45
million), representing a decrease of 54.7% year-over-year
from RMB669 million in the same
period of 2021. This decrease was primarily due to effective
control over marketing expenses and optimization of the overall
promotion structure to improve operating efficiency. Our selling
and marketing expenses also decreased sequentially as a result of
the improvement of external promotion channels' efficiency and
better utilization of internal traffic to attract users and promote
our brand.
- General and administrative expenses were RMB1.11 billion (US$166
million), representing an increase of 10.5% year-over-year
from RMB1.01 billion in the same
period of 2021. After excluding the impact from the expenses
related to our application for secondary listing, general and
administrative expenses would have increased by 6.2%
year-over-year. The increase was mainly due to increased investment
in research and development to expand our competitive advantages in
product and technology innovations.
Operating Profit for the Period
Operating profit was RMB1.05
billion (US$156 million) in
the second quarter of 2022, compared to an operating profit of
RMB1.04 billion in the same period of
2021.
Income Tax Expenses
Effective tax rate in the second 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 were
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
second quarter of 2022 was RMB856
million (US$128 million),
compared to a net profit of RMB827
million in the same period of 2021. Non-IFRS net profit
attributable to equity holders of the Company was RMB1.03 billion (US$154
million) for the second quarter of 2022, compared to
RMB1.12 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 RMB0.53 (US$0.08) and RMB0.53(US$0.08),
respectively, for the second quarter of 2022. Non-IFRS basic and
diluted earnings per ADS were RMB0.64
(US$0.10) and RMB0.63 (US$0.09),
respectively, for the second quarter of 2022. During the second
quarter of 2022, the Company had weighted averages of 1.61 billion
basic and 1.62 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 June 30, 2022, the combined
balance of the Company's cash, cash equivalents, term deposits and
short-term investments amounted to RMB25.80
billion (US$3.85 billion),
compared to RMB25.93 billion as of
March 31, 2022. During the three
months ended June 30, 2022, net cash
generated from operations was RMB1.24
billion (US$185 million) and
cash used in share repurchases was RMB969
million (US$145 million). We
also incurred a net cash outflow of RMB497
million (US$74 million) for
acquisition of shares in various subsidiaries and associates. 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 6.6981 to 1 on June 30,
2022.
Share Repurchase Program
Pursuant to the US$1 billion 2021
Share Repurchase Program announced on March
28, 2021, as of June 30, 2022,
we have repurchased approximately 86.8 million ADSs from the open
market with cash for a total consideration of approximately
US$735 million.
Conference Call Information
TME's management will hold a conference call on Monday,
August 15, 2022, at 8:00 P.M. Eastern
Time or 8:00 A.M. Beijing Time on Tuesday,
August 16, 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:
|
6831525
|
The replay will be accessible through August 22, 2022, by
dialing the following numbers:
United States Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Access Code:
|
2652958
|
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 RMB6.6981 to US$1.00, the noon buying rate in effect on
June 30, 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
June 30
|
|
Six Months Ended
June 30
|
|
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
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
|
|
|
2,950
|
|
2,878
|
|
430
|
|
5,699
|
|
5,494
|
|
820
|
Social entertainment
services and others
|
|
|
5,058
|
|
4,027
|
|
601
|
|
10,133
|
|
8,055
|
|
1,203
|
|
|
|
8,008
|
|
6,905
|
|
1,031
|
|
15,832
|
|
13,549
|
|
2,023
|
Cost of
revenues
|
|
|
(5,571)
|
|
(4,842)
|
|
(723)
|
|
(10,929)
|
|
(9,626)
|
|
(1,437)
|
Gross
profit
|
|
|
2,437
|
|
2,063
|
|
308
|
|
4,903
|
|
3,923
|
|
586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(669)
|
|
(303)
|
|
(45)
|
|
(1,341)
|
|
(633)
|
|
(95)
|
General and
administrative expenses
|
|
|
(1,008)
|
|
(1,114)
|
|
(166)
|
|
(1,891)
|
|
(2,126)
|
|
(317)
|
Total operating
expenses
|
|
|
(1,677)
|
|
(1,417)
|
|
(212)
|
|
(3,232)
|
|
(2,759)
|
|
(412)
|
Interest
income
|
|
|
123
|
|
151
|
|
23
|
|
277
|
|
301
|
|
45
|
Other gains,
net
|
|
|
152
|
|
248
|
|
37
|
|
251
|
|
329
|
|
49
|
Operating
profit
|
|
|
1,035
|
|
1,045
|
|
156
|
|
2,199
|
|
1,794
|
|
268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net
(loss)/profit of investments
accounted for using equity method
|
|
|
(22)
|
|
(6)
|
|
(1)
|
|
(49)
|
|
14
|
|
2
|
Finance cost
|
|
|
(29)
|
|
(23)
|
|
(3)
|
|
(60)
|
|
(53)
|
|
(8)
|
Profit before income
tax
|
|
|
984
|
|
1,016
|
|
152
|
|
2,090
|
|
1,755
|
|
262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(113)
|
|
(124)
|
|
(19)
|
|
(240)
|
|
(214)
|
|
(32)
|
Profit for the
period
|
|
|
871
|
|
892
|
|
133
|
|
1,850
|
|
1,541
|
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
827
|
|
856
|
|
128
|
|
1,753
|
|
1,465
|
|
219
|
Non-controlling
interests
|
|
|
44
|
|
36
|
|
5
|
|
97
|
|
76
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class
B ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.25
|
|
0.27
|
|
0.04
|
|
0.52
|
|
0.45
|
|
0.07
|
Diluted
|
|
|
0.24
|
|
0.26
|
|
0.04
|
|
0.52
|
|
0.45
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares
equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.49
|
|
0.53
|
|
0.08
|
|
1.05
|
|
0.90
|
|
0.13
|
Diluted
|
|
|
0.49
|
|
0.53
|
|
0.08
|
|
1.03
|
|
0.90
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,342,313,643
|
|
3,226,303,011
|
|
3,226,303,011
|
|
3,348,467,092
|
|
3,249,655,648
|
|
3,249,655,648
|
Diluted
|
|
|
3,375,732,279
|
|
3,248,584,128
|
|
3,248,584,128
|
|
3,388,178,977
|
|
3,272,858,914
|
|
3,272,858,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,671,156,821
|
|
1,613,151,506
|
|
1,613,151,506
|
|
1,674,233,546
|
|
1,624,827,824
|
|
1,624,827,824
|
Diluted
|
|
|
1,687,866,139
|
|
1,624,292,064
|
|
1,624,292,064
|
|
1,694,089,489
|
|
1,636,429,457
|
|
1,636,429,457
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions, except
per share data)
|
|
(in millions, except
per share data)
|
Profit for the
period
|
|
|
871
|
|
892
|
|
133
|
|
1,850
|
|
1,541
|
|
230
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising
from acquisitions*
|
|
|
120
|
|
121
|
|
18
|
|
230
|
|
242
|
|
36
|
Share-based
compensation
|
|
|
187
|
|
226
|
|
34
|
|
349
|
|
430
|
|
64
|
Losses/(gains) from
investments**
|
|
|
16
|
|
(139)
|
|
(21)
|
|
37
|
|
(141)
|
|
(21)
|
Income tax
effects***
|
|
|
(33)
|
|
(35)
|
|
(5)
|
|
(70)
|
|
(68)
|
|
(10)
|
Non-IFRS Net
Profit
|
|
|
1,161
|
|
1,065
|
|
159
|
|
2,396
|
|
2,004
|
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,117
|
|
1,029
|
|
154
|
|
2,299
|
|
1,928
|
|
288
|
Non-controlling
interests
|
|
|
44
|
|
36
|
|
5
|
|
97
|
|
76
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.33
|
|
0.32
|
|
0.05
|
|
0.69
|
|
0.59
|
|
0.09
|
Diluted
|
|
|
0.33
|
|
0.32
|
|
0.05
|
|
0.68
|
|
0.59
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.67
|
|
0.64
|
|
0.10
|
|
1.37
|
|
1.19
|
|
0.18
|
Diluted
|
|
|
0.66
|
|
0.63
|
|
0.09
|
|
1.36
|
|
1.18
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,342,313,643
|
|
3,226,303,011
|
|
3,226,303,011
|
|
3,348,467,092
|
|
3,249,655,648
|
|
3,249,655,648
|
Diluted
|
|
|
3,375,732,279
|
|
3,248,584,128
|
|
3,248,584,128
|
|
3,388,178,977
|
|
3,272,858,914
|
|
3,272,858,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,671,156,821
|
|
1,613,151,506
|
|
1,613,151,506
|
|
1,674,233,546
|
|
1,624,827,824
|
|
1,624,827,824
|
Diluted
|
|
|
1,687,866,139
|
|
1,624,292,064
|
|
1,624,292,064
|
|
1,694,089,489
|
|
1,636,429,457
|
|
1,636,429,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 June 30,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
243
|
|
268
|
|
40
|
Land use
rights
|
|
1,495
|
|
2,517
|
|
376
|
Right-of-use
assets
|
|
283
|
|
465
|
|
69
|
Intangible
assets
|
|
2,829
|
|
2,751
|
|
411
|
Goodwill
|
|
19,121
|
|
19,493
|
|
2,910
|
Investments accounted
for using equity method
|
|
3,599
|
|
4,117
|
|
615
|
Financial assets at
fair value through other
comprehensive income
|
7,302
|
|
3,240
|
|
484
|
Other
investments
|
|
199
|
|
285
|
|
43
|
Prepayments, deposits
and other assets
|
|
743
|
|
622
|
|
93
|
Deferred tax
assets
|
|
346
|
|
399
|
|
60
|
Term
deposits
|
|
4,303
|
|
4,433
|
|
662
|
|
|
40,463
|
|
38,590
|
|
5,761
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
24
|
|
23
|
|
3
|
Accounts
receivable
|
|
3,610
|
|
2,898
|
|
433
|
Prepayments, deposits
and other assets
|
|
2,731
|
|
3,398
|
|
507
|
Other
investments
|
|
37
|
|
37
|
|
6
|
Short-term
investments
|
|
1,029
|
|
1,116
|
|
167
|
Term
deposits
|
|
12,769
|
|
10,202
|
|
1,523
|
Cash and cash
equivalents
|
|
6,591
|
|
10,044
|
|
1,500
|
|
|
26,791
|
|
27,718
|
|
4,138
|
|
|
|
|
|
|
|
Total
assets
|
|
67,254
|
|
66,308
|
|
9,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity attributable
to equity holders of the
Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in
capital
|
|
36,238
|
|
36,379
|
|
5,431
|
Shares held for share
award schemes
|
|
(183)
|
|
(193)
|
|
(29)
|
Treasury
shares
|
|
(3,660)
|
|
(4,631)
|
|
(691)
|
Other
reserves
|
|
3,726
|
|
22
|
|
3
|
Retained
earnings
|
|
14,194
|
|
15,659
|
|
2,338
|
|
|
50,317
|
|
47,238
|
|
7,052
|
Non-controlling
interests
|
|
738
|
|
1,038
|
|
155
|
|
|
|
|
|
|
|
Total
equity
|
|
51,055
|
|
48,276
|
|
7,207
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payables
|
|
5,062
|
|
5,331
|
|
796
|
Accounts
payable
|
|
93
|
|
48
|
|
7
|
Other payables and
other liabilities
|
|
32
|
|
14
|
|
2
|
Deferred tax
liabilities
|
|
271
|
|
250
|
|
37
|
Lease
liabilities
|
|
205
|
|
378
|
|
56
|
Deferred
revenue
|
|
86
|
|
110
|
|
16
|
|
|
5,749
|
|
6,131
|
|
915
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
4,329
|
|
5,738
|
|
857
|
Other payables and
other liabilities
|
|
3,832
|
|
3,787
|
|
565
|
Current tax
liabilities
|
|
363
|
|
393
|
|
59
|
Lease
liabilities
|
|
92
|
|
88
|
|
13
|
Deferred
revenue
|
|
1,834
|
|
1,895
|
|
283
|
|
|
10,450
|
|
11,901
|
|
1,777
|
|
|
|
|
|
|
|
Total
liabilities
|
|
16,199
|
|
18,032
|
|
2,692
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
67,254
|
|
66,308
|
|
9,900
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
944
|
|
1,241
|
|
185
|
|
2,822
|
|
3,735
|
|
558
|
Net cash (used
in)/provided by investing activities
|
|
(2,921)
|
|
1,234
|
|
184
|
|
(5,303)
|
|
905
|
|
135
|
Net cash used in
financing activities
|
|
(1,401)
|
|
(973)
|
|
(145)
|
|
(1,773)
|
|
(1,368)
|
|
(204)
|
Net (decrease)/increase
in cash and cash equivalents
|
|
(3,378)
|
|
1,502
|
|
224
|
|
(4,254)
|
|
3,272
|
|
488
|
Cash and cash
equivalents at beginning of the period
|
|
10,274
|
|
8,353
|
|
1,247
|
|
11,128
|
|
6,591
|
|
984
|
Exchange differences on
cash and cash equivalents
|
|
(74)
|
|
189
|
|
28
|
|
(52)
|
|
181
|
|
27
|
Cash and cash
equivalents at end of the period
|
|
6,822
|
|
10,044
|
|
1,500
|
|
6,822
|
|
10,044
|
|
1,500
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-second-quarter-2022-unaudited-financial-results-301605799.html
SOURCE Tencent Music Entertainment
Group