Overview
- For the quarter ended Sept. 30, online music service revenue rose 27.2% year over year to RMB6.97 billion (about $979 million), and total operating profit increased 26.4% to $381 million.
- Results topped expectations with total revenue of $1.19 billion versus the $1.11 billion consensus and adjusted EPADS of $0.22 versus $0.20, sending shares higher premarket.
- Music subscription revenue grew 17.2% to $632 million as SVIP penetration increased and monthly ARPPU reached 11.9 yuan (about $1.6).
- User trends were mixed, with online-music MAUs down 4.3% to 551 million but paying users up 5.6% to 125.7 million.
- Growth drivers included the rollout of an ad-supported membership tier, new partnerships with South Korean and Japanese labels, a viral Honor of Kings theme-song collaboration, and expanded live events including 14 sold-out G-Dragon shows drawing over 150,000 attendees plus new TMElive and TMEA awards gatherings.