Executive Changes - Mr Zhenyu Xie has resigned from his executive positions as President, Chief Technology Officer, and board member, effective March 31, 2024, for personal reasons [1] - Mr Xie will continue to serve as a consultant to the company [1] - Ms Min Hu (Shirley Hu), the Chief Financial Officer, has been appointed as a director of the company, effective March 31, 2024 [1] Leadership Background - Ms Min Hu has over 20 years of experience in finance, including financial management, capital operations, mergers and acquisitions, and internal control [2] - Prior to joining Tencent Music Entertainment, Ms Hu held various controller roles in Tencent's business groups from 2007 to 2016 and served as the director of internal audit at Huawei Technologies [2] - Ms Hu holds professional certifications including CIMA, CPA Australia, CICPA, and CIA, and holds degrees in Industrial Foreign Trade and Systems Engineering [2] Company Overview - Tencent Music Entertainment Group is the leading online music and audio entertainment platform in China, operating popular apps such as QQ Music, Kugou Music, Kuwo Music, and WeSing [3] - The company's platform includes online music, audio, karaoke, live streaming, and online concert services, enabling users to discover, listen, sing, watch, perform, and socialize around music [3]

Investment Rating - The investment rating for Tencent Music (TME US) is "Buy" with a target price of $13.00, indicating a potential upside of 17.8% from the current price of $11.04 [1][7]. Core Insights - Tencent Music's Q4 2023 performance exceeded expectations, with total revenue of 6.89 billion RMB, a year-on-year decline of 7%, primarily due to adjustments in the social entertainment segment, which saw a 52% decrease [1][2]. - The adjusted net profit for Q4 2023 was 1.7 billion RMB, representing a 12% increase year-on-year, which was higher than both the report's and market's expectations [1][2]. - The online music segment showed strong growth, with revenue of 5.02 billion RMB, a year-on-year increase of 41%, driven by a 45% increase in music subscription revenue [2][5]. Summary by Sections Financial Performance - Q4 2023 total revenue was 6.89 billion RMB, down 7% year-on-year, but better than the market expectation of a 10% decline [5]. - Online music revenue reached 5.02 billion RMB, up 41% year-on-year, accounting for 73% of total revenue [2][5]. - The adjusted net profit for Q4 2023 was 1.7 billion RMB, with an adjusted net profit margin of 24% [1][5]. Membership and Revenue Growth - The number of music subscribers reached 107 million, with a net increase of 3.7 million in Q4 2023, resulting in a payment rate of 18.5% [2][5]. - Monthly ARPPU (Average Revenue Per Paying User) increased to 10.7 RMB, reflecting a 20% year-on-year growth [2][5]. - The report forecasts a 37% increase in music subscription revenue for Q1 2024 and a 25% increase for the full year [2][6]. Cost and Profitability - Gross margin improved to 38% in Q4 2023, benefiting from increased subscription and advertising revenues [1][5]. - The report anticipates a further increase in gross margin to 40% in 2024 due to better cost optimization in online music [2][6]. - The adjusted net profit for 2024 is projected to be 6.62 billion RMB, with a corresponding adjusted net profit margin of 23% [8]. Valuation and Market Outlook - The target price for Tencent Music has been raised to $13.00 based on a comparable music and copyright company average P/E ratio of 20x for 2024 [2][8]. - The company continues to see growth potential in music membership over the next two years, supported by scale effects and increased self-produced content [2][6].

Tencent Music Entertainment (NYSE:TME) Q4 2023 Results Conference Call March 19, 2024 7:00 AM ET Company Participants Millicent Tu - Head of Investor Relations Kar Shun Pang - Executive Chairman Ross Liang - Chief Executive Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alex Poon - Morgan Stanley Alicia Yap - Citigroup Lincoln Kong - Goldman Sachs Fang Wei - Mizuho Zhang Lei - Bank of America Merrill Lynch Xueqing Zhang - CICC Thomas Chong - Jefferies Millicent Tu Good evening, go ...

Exhibit 99.1 Tencent Music Entertainment Group Announces Fourth Quarter and Full-Year 2023 Unaudited Financial Results SHENZHEN, China, March 19, 2024 /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 fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Financial Highlights Full Year 2023 Financial Highlights 1 • ...

Core Insights - Tencent Music Entertainment Group (TME) reported a 20.6% year-over-year increase in music paying users, reaching 106.7 million, with a monthly ARPPU growth of 20.2% [1][4] - The company experienced a total revenue decline of 7.2% year-over-year in Q4 2023, primarily due to decreased revenues from social entertainment services [2][5] - Music subscription revenues grew by 45.3% year-over-year, contributing significantly to the overall revenue despite the decline in other segments [2][3] Financial Highlights - Total revenues for Q4 2023 were RMB 6.89 billion (US$ 971 million), down from RMB 7.43 billion in Q4 2022 [2][5] - Net profit for Q4 2023 was RMB 1.41 billion (US$ 198 million), reflecting a 16.9% year-over-year increase [2][5] - For the full year 2023, total revenues were RMB 27.75 billion (US$ 3.91 billion), a decrease of 2.1% compared to 2022 [3][5] Operational Highlights - Monthly active users (MAUs) for online music decreased by 4.2% year-over-year to 576 million, while mobile MAUs for social entertainment dropped by 28.8% [4][5] - The company expanded its content offerings, partnering with over 200 record labels and publishing over 3 million songs from indie musicians [4][5] - TME enhanced user experience through technology innovations, including a larger Dolby Atmos music library and personalized app features [4][5] Strategic Initiatives - TME's focus on AI-driven tools, such as the upgraded virtual DJ feature and the Venus AI composition tool, aims to improve music discovery and artist creation [5][6] - The company hosted various offline music events to promote cultural and economic development, particularly in ethnic minority regions [7] Shareholder Returns - Under its US$ 500 million share repurchase program, TME repurchased 25.3 million ADSs for a total consideration of US$ 174.5 million as of December 31, 2023 [6]

SHENZHEN, China, Feb. 20, 2024 /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 that it will report its unaudited financial results for the fourth quarter and full year of 2023 before the U.S. market opens on Tuesday, March 19, 2024. TME's management will host a Tencent Meeting Webinar on Tuesday, March 19, 2024, at 7:00 A.M. Eastern Time or 7:00 P.M. Beijing/Hong Kong T ...

SHENZHEN, China, Jan. 3, 2024 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, and Universal Music Group ("UMG"), the world's leading music-based entertainment company, today announced the renewal of a multi-year strategic licensing agreement, fortifying their shared commitment to creating value for artists and exceptional experiences for music lovers. Under the agreement, TME continues ...

Tencent Music Entertainment Group (NYSE:TME) Q3 2023 Earnings Conference Call November 14, 2023 6:00 AM ET Company Participants Millicent Tu - Investor Relations Kar Shun Pang - Executive Chairman Ross Liang - Chief Executive Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alicia Yap - Citigroup Alex Poon - Morgan Stanley Zhang Lei - Bank of America Merrill Lynch Lincoln Kong - Goldman Sachs Thomas Chong - Jefferies Alex Yao - JPMorgan Xueqing Zhang - CICC Wei Xiong - UBS Millicent ...

Company Information - Tencent Music Entertainment Group filed its report for April 2024 under Form 20-F[1] - The company is headquartered in Shenzhen, China, with a principal office address at Unit 3, Building D, Kexing Science Park[2] Report Details - The report was signed by Min Hu, Chief Financial Officer, on April 18, 2024[5]

Tencent Music Entertainment Group (NYSE:TME) Q2 2023 Results Conference Call August 15, 2023 8:00 AM ET Company Participants Tony Yip - Chief Strategy Officer Kar Shun Pang - Executive Chairman Ross Liang - Chief Executive Officer Shirley Hu - Chief Financial Officer Conference Call Participants Alex Yao - JPMorgan Lei Zhang - Bank of America Merrill Lynch Alex Poon - Morgan Stanley Lincoln Kong - Goldman Sachs Alicia Yap - Citicorp Thomas Chong - Jefferies Xueqing Zhang - CICC Tony Yip Good evening and goo ...