SHENZHEN, China, Nov. 15,
2022 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the
"Company") (NYSE: TME and HKEX: 1698), the leading online music and
audio entertainment platform in China, today announced its unaudited financial
results for the third quarter ended September 30, 2022.
Financial and Operational Highlights
In the three months ended September
30, 2022:
- Net profit of the Company was RMB1.09 billion (US$154
million), representing a 38.7% increase year-over-year and a
22.5% increase on a sequential basis. Non-IFRS net profit of the
Company[1] was RMB1.41
billion (US$198 million),
representing a 32.7% increase year-over-year and a 32.5% increase
on a sequential basis.
- Total revenues were RMB7.37
billion (US$1.04 billion),
representing a 5.6% year-over-year decrease and a 6.7% increase on
a sequential basis.
- Revenues from music subscriptions were RMB2.25 billion (US$316
million), representing an increase of 18.3% year-over-year.
Paying users reached 85.3 million, increasing by 19.8%
year-over-year. On a sequential basis, the number of online music
paying users grew by 2.6 million.
- Net profit attributable to equity holders of the Company
was RMB1.06 billion (US$149 million) and Non-IFRS net profit
attributable to equity holders of the
Company[1] was RMB1.38 billion (US$194
million).
"As we are employing a balanced approach to grow paying users
and ARPPU, revenues from online music services increased at a
healthy pace in the third quarter, driven by year-over-year gains
in subscriptions. Meanwhile, effective cost optimization measures
and improved operating efficiency led to increased profitability
amid challenging macro conditions this quarter," said Mr. Cussion
Pang, Executive Chairman of TME. "Leveraging our dual engine
content-and-platform strategy, we introduced more resources and
optimized services to furnish music content creators and musicians
with the tools they need and music lovers with the sounds and
features they want. Each new element we offer drives the
development of our business and the overall industry. Furthermore,
completing our listing on the Main Board of The Stock Exchange of
Hong Kong, in addition to our
primary listing on the NYSE, demonstrates our commitment to
protecting long-term value for shareholders. Also, as a
token of confidence in our Company's bright future, as
of the end of the third quarter, we had repurchased over
$800 million of our stock, pursuant
to the $1 billion share repurchase
program we announced last year."
"Propelled by our innovative spirit, we introduced numerous
immersive and connective product upgrades in the third quarter.
Users now have even more unique ways to interact with our content
and with one another as they listen, watch, sing and play," said
Mr. Ross Liang, CEO of TME. "Today,
we cater to more diverse music tastes and nuanced user demands than
ever before. Improved experiences, together with more privileges,
translate into new, attractive monetization opportunities for us to
actively tap into, such as TME Live, TMELAND, Super VIP Membership,
Artist Subscription and more. To supplement our expanding world of
music content, we also introduced a number of tech-supported tools
to facilitate long-form audio podcast creation. Our deepened
connection with Tencent's broader ecosystem has continued to
bolster our content production, promotion and monetization
capabilities. Finally, developing music experiences with resounding
positive influence is the backbone of our company. As we nurture
these strengths, we continue to bring more social awareness and
value to our music-empowered charity programs while supporting
music and its evolution."
Recent Operational Highlights
- TME's online music and social entertainment services key
operating metrics[2]
|
3Q22
|
3Q21
|
YoY %
|
Mobile MAU - online
music (million)
|
587
|
636
|
(7.7 %)
|
Mobile MAU - social
entertainment (million)
|
155
|
205
|
(24.4 %)
|
Paying users - online
music (million)
|
85.3
|
71.2
|
19.8 %
|
Paying users - social
entertainment (million)
|
7.4
|
10.0
|
(26.0 %)
|
Monthly ARPPU - online
music (RMB)
|
8.8
|
8.9
|
(1.1 %)
|
Monthly ARPPU - social
entertainment (RMB)
|
177.3
|
163.9
|
8.2 %
|
-
-
- The year-over-year decline in online music mobile MAUs was
primarily due to churn of our casual users amid competition from
pan-entertainment platforms, as well as cost optimization measures
to focus on boosting monetization efficiency as a platform of
scale. Nevertheless, QQ Music DAUs continued to increase
year-over-year, indicating healthy user engagement with our
flagship products. Notably, online music paying users, a cohort
representing high-quality users, continued to grow at a robust pace
and drove paying ratio to a new record, while ARPPU also kept
improving sequentially, driven by our expanding content offerings
and product enhancements, as well as broadened sales channels and
moderated promotions. As a result, our subscription revenue
continued to deliver healthy year-over-year and
quarter-over-quarter growth.
- Social entertainment services MAUs and 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,
international expansion and virtual interactive product
offerings.
- Our content strategy continued to strengthen the scale,
quality and appeal of our content offerings.
-
- Broad content partnerships with top labels and
artists, both domestically and internationally, to improve the
diversity of collaborations:
-
- Teamed up with YG Entertainment, Faye
Wong, Roy Wang, Lay Zhang and
others to provide our users with benefits in the 30-day head start
period following the release of their new songs.
- Jay Chou's digital album
"Greatest Works of Art" recorded sales of close to 7 million copies
by the end of the third quarter.
- Cooperated with professional institutions and industry partners
in the gaming, classical and electronic music verticals to enhance
our reputation as the go-to destination.
- Original content production
capabilities to grow our expansive and cross-generational
music library:
-
- Expanded the influence of our original works by bringing them
to both domestic and overseas audiences. Notable examples in the
third quarter included our musician Akini
Jing's album Endless Farewell, which was recognized as the
monthly pick by Pitchfork, a worldwide authority in music reviews,
as well as a number of original singles that went viral on the
internet and each raked in over 100 million streams, such as Heard
from You by Dongran Yu.
- Rolled out a patented voice synthesis technology, Lingyin
Engine, to accelerate original content production through
technological innovations. Developed the synthetic voices in memory
of legendary artists such as Teresa
Teng and Anita Mui, and
created an AI singer lineup with the voices of trending stars such
as Yang Chaoyue, among others. As of the end of the third quarter,
we have launched over 1,000 songs with AI synthetic voices.
- Tencent Musician
Platform, an all-round service platform that helps indie
musicians showcase their talent and passion for music:
-
- Empowered over 350,000 independent musicians in the third
quarter to help create, distribute and monetize their music
content.
- Scaled up online and offline support during the third quarter
to introduce new features such as "TME Artists' Albums" which helps
musicians release digital albums and brings them income generated
by their albums sales. Also recommended a diverse group of our
musicians to various shows and events hosted by TME and sponsored
by Sprite, SAIC Audi and JD, among others, to provide strong
promotion and commercial resources, and in the meantime help
advertisers raise the value and influence of their brands.
- TME Live pairs on- and off-line music
entertainment to bring fans various A-list performances:
-
- Hosted 32 online and offline performances in the third quarter
by various A-list stars, including Han
Hong and Wakin Chau.
- Pioneered TME Live Moment's "Vote Your Encore," an interactive
feature enabling fans to vote on a concert's closing song and
engage more deeply with performances.
- Our platform strategy creates an immersive, bonding
experience for our users, highlighted by our four pillars of
entertainment: listen, watch, sing and play.
-
- Became the first music platform domestically to offer new
features such as Dolby Surround Sound, Adaptive Sound Adjustment,
iOS 16 lock-screen widgets and more to provide a nimble user
interface and a tech-oriented, professional listening experience
for our users.
- Upgraded the personalized playlist function and smart
recommendation feature to further simplify the listening process
and bolster music discovery efficiency. As a result of these
refinements, QQ Music and Kugou Music's recommendation streaming
volume and time spent per user both registered year-over-year
increases.
- Hosted a virtual 3D live show in TMELAND partnering with Pepsi
and its virtual idol group TEAM PEPSI, with over 4 million fans
joining.
- Debuted new interactive features such as Music Zone, a 2D
virtual music community, and Tan Go, a music entertainment feature,
to bring users even more fun ways to interact with music, artists
and each other.
- Long-form Audio: We launched Shengbo, putting a one-stop
audio creation assistant in our podcasters' pockets. We also
enhanced our Text to Sound (TTS) technology to facilitate and
supplement podcast content production.
- Social responsibility is another fundamental part of our
music ecosystem. On 99 Giving Day, we teamed up with artists
including Mao Buyi and Tencent
Charity to launch "Hear the Light of Music," a philanthropic album,
and "Surprised by Music," a charity concert, to raise awareness and
funds for environmental protection, as well as young and elderly
groups in rural areas.
[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 to different
services by the same device is not eliminated from the
calculation.
|
Third Quarter 2022 Financial Results
Revenues
Total revenues for the third quarter of 2022 decreased by
RMB440 million, or 5.6%, to
RMB7.37 billion (US$1.04 billion) from RMB7.81 billion in the same period of 2021.
- Revenues from online music services for the third quarter of
2022 increased by 18.8% to RMB3.43
billion (US$482 million) from
RMB2.89 billion in the same period of
2021. The increase was driven by strong growth in music
subscription revenues, supplemented by growth in revenues from
sales of digital albums and advertising services, partially offset
by a decrease in sublicensing revenues. Revenues from music
subscriptions were RMB2.25 billion
(US$316 million), representing growth
of 18.3% compared to RMB1.90 billion
in the same period of 2021, primarily due to an increase in the
number of paying users by 19.8%. ARPPU remained stable at
RMB8.8 this quarter compared to
RMB8.9 in the third quarter of 2021
and improved by 3.5% sequentially, because we focused more intently
on high-quality growth of our subscription revenue while
maintaining a healthy ARPPU this year. The increase in revenues
from sales of digital albums was mainly due to the launch of
digital albums during the period. Moreover, revenues from
advertising increased on both a year-over-year and sequential basis
as we began to recover moderately from the impact of COVID-19 and
offered more advertising formats to our customers. Sublicensing
revenues 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
third quarter of 2022 decreased by 20.0% to RMB3.94 billion (US$553
million) from RMB4.92 billion
in the same period of 2021. On a year-over-year basis, ARPPU
increased by 8.2% in the third quarter of 2022, while paying users
of social entertainment services decreased by 26.0%. The decrease
was mainly due to the impact of the evolving macro environment and
increased competition from other platforms.
Cost of Revenues
Cost of revenues for the third quarter of 2022 decreased by 9.7%
to RMB4.96 billion (US$698 million) from RMB5.50 billion in the same period of 2021. The
declined revenues from social entertainment services led to the
decrease in revenue sharing fees, which was the primary reason for
the overall decrease in cost of revenues on a year-over-year
basis.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2022 increased by 4.1% to
RMB2.40 billion (US$338 million) from RMB2.31 billion in the same period of 2021. Gross
margin for the third quarter of 2022 increased by 3.0% to 32.6%
from 29.6% in the same period of 2021. This increase in gross
margin was primarily due to our effective control of
content costs including revenue sharing fees for our live streaming
business, as well as improved operational cost efficiencies and the
increase in revenues from advertising services and sales of digital
albums.
Operating Expenses for the Period
Total operating expenses for the third quarter of 2022 decreased
by 12.3% to RMB1.44 billion
(US$202 million) from RMB1.64 billion in the same period of 2021.
Operating expenses as a percentage of total revenues decreased by
1.5% to 19.5% in the third quarter of 2022 from 21.0% in the same
period of 2021. After excluding the impact from the expenses
related to our secondary listing, operating expenses as a
percentage of total revenues would have decreased by 2.1%
year-over-year.
- Selling and marketing expenses were RMB245 million (US$34
million), representing a decrease of 58.3% year-over-year
from RMB587 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 continuously decreased during this year as
we reduced the marketing spending on user acquisition and remained
more focused on paying user growth.
- General and administrative expenses were RMB1.19 billion (US$168
million), representing an increase of 13.4% year-over-year
from RMB1.05 billion in the same
period of 2021. After excluding the impact from the expenses
related to our secondary listing, general and administrative
expenses would have increased by 9.2% year-over-year. The increase
was mainly due to increased investment in research and
development.
Operating Profit for the Period
Operating profit for the third quarter of 2022 increased by
37.2% to RMB1.26 billion
(US$177 million) from RMB919 million in the same period of 2021,
resulting from our improved gross profit and effective control over
operational efficiency.
Income Tax Expenses
Effective tax rate in the third 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
third quarter of 2022 increased by 43.4% to RMB1.06 billion (US$149
million) from RMB740 million
in the same period of 2021. Non-IFRS net profit attributable to
equity holders of the Company for the third quarter of 2022
increased by 35.9% to RMB1.38 billion
(US$194 million) from RMB1.02 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 RMB0.67 (US$0.09) and RMB0.66(US$0.09),
respectively, for the third quarter of 2022. Non-IFRS basic and
diluted earnings per ADS were RMB0.87
(US$0.12) and RMB0.86 (US$0.12),
respectively, for the third quarter of 2022. During the third
quarter of 2022, the Company had weighted averages of 1.59 billion
basic and 1.60 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 September 30, 2022, the
combined balance of the Company's cash, cash equivalents, term
deposits and short-term investments amounted to RMB25.45 billion (US$3.58
billion), compared to RMB25.80
billion as of June 30, 2022.
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 7.1135 to 1 on September
30, 2022.
Share Repurchase Program
Pursuant to the US$1 billion 2021
Share Repurchase Program announced on March
28, 2021, as of September 30,
2022, we had repurchased approximately 114.0 million ADSs
from the open market with cash for a total consideration of
approximately US$860 million.
Conference Call Information
TME's management will hold a conference call at 7:00 P.M. on
Tuesday, November 15, 2022
(Hong Kong time) (6:00 A.M. on November 15,
2022, U.S. Eastern Time) to discuss the financial result for
the three months ended September 30,
2022. The dial-in details of the conference call are as
follows:
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:
|
2420087
|
The replay will be accessible through November 22, 2022, by
dialing the following numbers:
United States Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Access Code:
|
4004801
|
Additionally, a live and archived webcast of the conference call
will 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 RMB7.1135 to US$1.00, the noon buying rate in effect on
September 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 and HKEX: 1698) 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 and the HKEX. 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
September 30
|
|
Nine Months Ended
September 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
|
|
|
2,888
|
|
3,430
|
|
482
|
|
8,587
|
|
8,924
|
|
1,255
|
Social entertainment
services and others
|
|
|
4,917
|
|
3,935
|
|
553
|
|
15,050
|
|
11,990
|
|
1,686
|
|
|
|
7,805
|
|
7,365
|
|
1,035
|
|
23,637
|
|
20,914
|
|
2,940
|
Cost of
revenues
|
|
|
(5,496)
|
|
(4,962)
|
|
(698)
|
|
(16,425)
|
|
(14,588)
|
|
(2,051)
|
Gross
profit
|
|
|
2,309
|
|
2,403
|
|
338
|
|
7,212
|
|
6,326
|
|
889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(587)
|
|
(245)
|
|
(34)
|
|
(1,928)
|
|
(878)
|
|
(123)
|
General and
administrative expenses
|
|
|
(1,051)
|
|
(1,192)
|
|
(168)
|
|
(2,942)
|
|
(3,318)
|
|
(466)
|
Total operating
expenses
|
|
|
(1,638)
|
|
(1,437)
|
|
(202)
|
|
(4,870)
|
|
(4,196)
|
|
(590)
|
Interest
income
|
|
|
131
|
|
186
|
|
26
|
|
408
|
|
487
|
|
68
|
Other gains,
net
|
|
|
117
|
|
109
|
|
15
|
|
368
|
|
438
|
|
62
|
Operating
profit
|
|
|
919
|
|
1,261
|
|
177
|
|
3,118
|
|
3,055
|
|
429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net
profit/(loss) of investments accounted for
using equity method
|
|
|
1
|
|
8
|
|
1
|
|
(48)
|
|
22
|
|
3
|
Finance cost
|
|
|
(30)
|
|
(24)
|
|
(3)
|
|
(90)
|
|
(77)
|
|
(11)
|
Profit before income
tax
|
|
|
890
|
|
1,245
|
|
175
|
|
2,980
|
|
3,000
|
|
422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(102)
|
|
(152)
|
|
(21)
|
|
(342)
|
|
(366)
|
|
(51)
|
Profit for the
period
|
|
|
788
|
|
1,093
|
|
154
|
|
2,638
|
|
2,634
|
|
370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
740
|
|
1,061
|
|
149
|
|
2,493
|
|
2,526
|
|
355
|
Non-controlling
interests
|
|
|
48
|
|
32
|
|
4
|
|
145
|
|
108
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class
B ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.22
|
|
0.33
|
|
0.05
|
|
0.75
|
|
0.78
|
|
0.11
|
Diluted
|
|
|
0.22
|
|
0.33
|
|
0.05
|
|
0.74
|
|
0.78
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares
equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.45
|
|
0.67
|
|
0.09
|
|
1.50
|
|
1.57
|
|
0.22
|
Diluted
|
|
|
0.44
|
|
0.66
|
|
0.09
|
|
1.47
|
|
1.55
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,305,669,441
|
|
3,176,110,236
|
|
3,176,110,236
|
|
3,334,040,031
|
|
3,224,870,392
|
|
3,224,870,392
|
Diluted
|
|
|
3,337,499,968
|
|
3,206,799,580
|
|
3,206,799,580
|
|
3,382,627,682
|
|
3,255,991,564
|
|
3,255,991,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS
computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,652,834,720
|
|
1,588,055,118
|
|
1,588,055,118
|
|
1,667,020,016
|
|
1,612,435,196
|
|
1,612,435,196
|
Diluted
|
|
|
1,668,749,984
|
|
1,603,399,790
|
|
1,603,399,790
|
|
1,691,313,841
|
|
1,627,995,782
|
|
1,627,995,782
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 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
|
|
|
788
|
|
1,093
|
|
154
|
|
2,638
|
|
2,634
|
|
370
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising
from acquisitions*
|
|
|
127
|
|
130
|
|
18
|
|
357
|
|
372
|
|
52
|
Share-based
compensation
|
|
|
202
|
|
226
|
|
32
|
|
551
|
|
656
|
|
92
|
(Gains)/Losses from
investments**
|
|
|
(21)
|
|
-
|
|
-
|
|
16
|
|
(141)
|
|
(20)
|
Income tax
effects***
|
|
|
(33)
|
|
(38)
|
|
(5)
|
|
(103)
|
|
(106)
|
|
(15)
|
Non-IFRS Net
Profit
|
|
|
1,063
|
|
1,411
|
|
198
|
|
3,459
|
|
3,415
|
|
480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,015
|
|
1,379
|
|
194
|
|
3,314
|
|
3,307
|
|
465
|
Non-controlling
interests
|
|
|
48
|
|
32
|
|
4
|
|
145
|
|
108
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary
shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.31
|
|
0.43
|
|
0.06
|
|
0.99
|
|
1.03
|
|
0.14
|
Diluted
|
|
|
0.30
|
|
0.43
|
|
0.06
|
|
0.98
|
|
1.02
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (2
Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.61
|
|
0.87
|
|
0.12
|
|
1.99
|
|
2.05
|
|
0.29
|
Diluted
|
|
|
0.61
|
|
0.86
|
|
0.12
|
|
1.96
|
|
2.03
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,305,669,441
|
|
3,176,110,236
|
|
3,176,110,236
|
|
3,334,040,031
|
|
3,224,870,392
|
|
3,224,870,392
|
Diluted
|
|
|
3,337,499,968
|
|
3,206,799,580
|
|
3,206,799,580
|
|
3,382,627,682
|
|
3,255,991,564
|
|
3,255,991,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in earnings
per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,652,834,720
|
|
1,588,055,118
|
|
1,588,055,118
|
|
1,667,020,016
|
|
1,612,435,196
|
|
1,612,435,196
|
Diluted
|
|
|
1,668,749,984
|
|
1,603,399,790
|
|
1,603,399,790
|
|
1,691,313,841
|
|
1,627,995,782
|
|
1,627,995,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 September 30,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
243
|
|
289
|
|
41
|
Land use
rights
|
|
1,495
|
|
2,499
|
|
351
|
Right-of-use
assets
|
|
283
|
|
435
|
|
61
|
Intangible
assets
|
|
2,829
|
|
2,491
|
|
350
|
Goodwill
|
|
19,121
|
|
19,493
|
|
2,740
|
Investments accounted
for using equity method
|
|
3,599
|
|
4,386
|
|
617
|
Financial assets at
fair value through other comprehensive
income
|
7,302
|
|
3,172
|
|
446
|
Other
investments
|
|
199
|
|
299
|
|
42
|
Prepayments, deposits
and other assets
|
|
743
|
|
659
|
|
93
|
Deferred tax
assets
|
|
346
|
|
392
|
|
55
|
Term
deposits
|
|
4,303
|
|
6,570
|
|
924
|
|
|
40,463
|
|
40,685
|
|
5,719
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
24
|
|
20
|
|
3
|
Accounts
receivable
|
|
3,610
|
|
2,916
|
|
410
|
Prepayments, deposits
and other assets
|
|
2,731
|
|
4,221
|
|
593
|
Other
investments
|
|
37
|
|
37
|
|
5
|
Short-term
investments
|
|
1,029
|
|
-
|
|
-
|
Term
deposits
|
|
12,769
|
|
10,294
|
|
1,447
|
Cash and cash
equivalents
|
|
6,591
|
|
8,582
|
|
1,206
|
|
|
26,791
|
|
26,070
|
|
3,665
|
|
|
|
|
|
|
|
Total
assets
|
|
67,254
|
|
66,755
|
|
9,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity attributable
to equity holders of the
Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in
capital
|
|
36,238
|
|
36,493
|
|
5,130
|
Shares held for share
award schemes
|
|
(183)
|
|
(200)
|
|
(28)
|
Treasury
shares
|
|
(3,660)
|
|
(5,445)
|
|
(765)
|
Other
reserves
|
|
3,726
|
|
5,404
|
|
760
|
Retained
earnings
|
|
14,194
|
|
10,970
|
|
1,542
|
|
|
50,317
|
|
47,224
|
|
6,639
|
Non-controlling
interests
|
|
738
|
|
1,070
|
|
150
|
|
|
|
|
|
|
|
Total
equity
|
|
51,055
|
|
48,294
|
|
6,789
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payables
|
|
5,062
|
|
5,641
|
|
793
|
Accounts
payable
|
|
93
|
|
-
|
|
-
|
Other payables and
other liabilities
|
|
32
|
|
6
|
|
1
|
Deferred tax
liabilities
|
|
271
|
|
219
|
|
31
|
Lease
liabilities
|
|
205
|
|
349
|
|
49
|
Deferred
revenue
|
|
86
|
|
108
|
|
15
|
|
|
5,749
|
|
6,323
|
|
889
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
4,329
|
|
4,838
|
|
680
|
Other payables and
other liabilities
|
|
3,832
|
|
4,490
|
|
631
|
Current tax
liabilities
|
|
363
|
|
476
|
|
67
|
Lease
liabilities
|
|
92
|
|
99
|
|
14
|
Deferred
revenue
|
|
1,834
|
|
2,235
|
|
314
|
|
|
10,450
|
|
12,138
|
|
1,706
|
|
|
|
|
|
|
|
Total
liabilities
|
|
16,199
|
|
18,461
|
|
2,595
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
67,254
|
|
66,755
|
|
9,384
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
|
2021
|
|
2022
|
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,595
|
|
1,252
|
|
176
|
|
4,417
|
|
4,987
|
|
701
|
Net cash used in
investing activities
|
|
(1,692)
|
|
(1,243)
|
|
(175)
|
|
(6,995)
|
|
(338)
|
|
(48)
|
Net cash used in
financing activities
|
|
(1,651)
|
|
(1,668)
|
|
(234)
|
|
(3,424)
|
|
(3,036)
|
|
(427)
|
Net (decrease)/increase
in cash and cash equivalents
|
|
(1,748)
|
|
(1,659)
|
|
(233)
|
|
(6,002)
|
|
1,613
|
|
227
|
Cash and cash
equivalents at beginning of the period
|
|
6,822
|
|
10,044
|
|
1,412
|
|
11,128
|
|
6,591
|
|
927
|
Exchange differences on
cash and cash equivalents
|
|
4
|
|
197
|
|
28
|
|
(48)
|
|
378
|
|
53
|
Cash and cash
equivalents at end of the period
|
|
5,078
|
|
8,582
|
|
1,206
|
|
5,078
|
|
8,582
|
|
1,206
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-third-quarter-2022-unaudited-financial-results-301677824.html
SOURCE Tencent Music Entertainment
Group