This is the largest net increase since the first quarter of 2018.
On August 13, Tencent Music announced its earnings for the second quarter and the first six months of June 30, 2019. In 2019, Q2, Tencent’s total revenue increased by 31% year-on-year to 5.9 billion yuan, and the market estimate was 5.94 billion yuan. Net profit attributable to shareholders of the company was RMB 927 million, slightly lower than the 987 million yuan in the previous quarter.
Tencent Music’s online music pays continued to increase this quarter, reaching 31 million, a year-on-year increase of 33.0%, a net increase of 2.6 million from the previous quarter, Span> This is the largest net increase since the first quarter of 2018.
The increase in the number of online payers is reflected in the income of online music services, which has increased from the previous year’s 1.3 billion yuan to 1.56 billion yuan, a year-on-year increase of 20.2%. The increase in music subscription revenue and sales of digital music albums has led to an increase in revenue. Among them, music subscription revenue was 798 million yuan, a year-on-year increase of 31.9%, compared with 605 million yuan in the same period last year.
Tencent Music CEO Peng Jiaxin mentioned that the growth of online music paying users this quarter was mainly due to its cooperation with more music brands and added more content. Includes music-centered variety shows. And strengthen alliances with short video and audio products such as audio books and podcasts. At the same time, including the development of more original music for games, movies and TV shows in the Tencent ecosystem, the number of online music paying users has increased.
In terms of social entertainment services and other services, Q2 revenue in 2012 was 4.34 billion yuan, up 35.3% year-on-year, compared with 3.2 billion yuan in the same period last year, mainly for online karaoke and live broadcast service growth. Pushed . The number of payers in this segment increased by 16.8% to 11.1 million.
This part of the revenue is still the main revenue pillar of Tencent Music. Tencent Music has continued to exert its strength in this part of the business this season.The K-small program was launched and launched. APP Extreme Edition to lower user thresholds and attract new users.
In terms of revenue costs, Q2 in 2019 was 3.96 billion yuan, up 46.1% year-on-year, compared with 2.71 billion yuan in the same period last year. Tencent Music said that it was mainly due to the increase in content fees and revenue sharing fees. The increase in content costs is mainly due toThe market price of licensed music content obtained by record companies and other content companies is rising, and the number of licensed music required is also increasing. The increase in revenue sharing expenses reflects the growth of the company’s social entertainment services. In order to strengthen social functions and increase user participation, corresponding incentives have been taken.
In order to further stimulate users, Tencent Music is still in contact with manufacturers such as smart phones and smart watches. This has also become a common means for Internet products to further acquire users and cooperate with terminals. From its own point of view, Tencent Music’s cool dog products have been updated in the quarter, adding short video capabilities, UGC and PGC content can also attract users to a certain extent. In addition, Tencent Music is also making efforts to acquire overseas users. WeSing, the national version of Wego, is currently responsible for the mission of Tencent Music, mainly for Southeast Asian countries.