The accelerated era of payment is coming.
On November 12th, Tencent Music Entertainment Group released its financial report for the third quarter ended September 30, 2019.
The financial report shows that in the third quarter of 2019, Tencent Music Entertainment’s total revenue was 6.51 billion yuan, year-on-year growth of 31.0%; net profit of 1.03 billion yuan, Year-on-year growth of 6.4%, and this figure is higher than the 927 million yuan in the previous quarter.
As of press time, Tencent’s share price fell by 7.96%.
During the quarter, Tencent Music’s online music pays continued to increase, reaching 35.4 million, up 42.2% year-on-year, a net increase of 4.4 million from the previous quarter, both higher than the 2.6 million and the second quarter of the same year. In the first quarter, 1.4 million, the net increase reached a new high in the quarter.
The increase in the number of online payers is reflected in the revenue of online music services from 14.6to 18.5100 million yuan, an increase of 26.2%. Among them, music subscription revenue was 942 million yuan, up 48.3% year-on-year, This was mainly due to the increase in the retention rate of paying users and the increase in the number of paying users.
Humin, chief financial officer of Tencent Music, mentioned that “ the release of the new album has enabled Tencent’s digital album revenue to double this quarter compared to the third quarter of last year.”The top traffic Jay has played a significant role in promoting it. Jay Chou released the single “Say Good to Cry” at 23 o’clock on September 16 this quarter. Two days later, “Say no cry” In the QQ music sold 6.66 million, sales of nearly 20 million yuan. It is also the highest single digital single in the history of QQ music platform, and the first digital single that breaks through the hallmark of the Golden Diamond record. Not only that, Jay Chou’s new song release also boosted the user activity of Tencent’s K-song software. Tencent’s music said that the song has 10 days after its release. More than 12 million WeSing K song users make K songs.
In terms of social entertainment services and other services revenue, Q3’s revenue in 2019 was 4.66 billion yuan, a year-on-year increase of 32.9%.The same period last year was 3.51 billion yuan, mainly driven by the growth of online karaoke and live broadcast services. The number of payers in this segment increased by 23.2% and ARPPU increased by 7.4%.
This segment of revenue is still the main revenue pillar of Tencent Music,Tencent Music has continued to develop this part of the business this quarter, Tencent in the K song social entertainment program adds new social and gamification features to facilitate user connections. The gap between this portion of revenue and online music service revenue is still widening.
In terms of revenue costs, Q3 in 2010 was 4.30 billion yuan, an increase of 42.9% year-on-year, compared with 3.01 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 fees is mainly due to the rising market price of authorized music content obtained from record companies and other content companies, and the increasing number of original music has also increased the cost of content fees. 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 aims to target more young user groups, and to promote young users by establishing contacts with colleges and universities, launching comics and games that adapt to young music users. Activities such as subscription promotions are also offered to younger users.
From the perspective of the entire content ecosystem, Tencent Music has expanded its audio, PGC and UGC short videos in addition to expanding its songs. At present, several major music apps are trying. In the context of increasingly fierce competition in streaming media, the music platform is constantly expanding its extension.