TME(TME) - 2025 Q1 - Quarterly Results

Revenue Growth - Total revenues for Q1 2025 were RMB7.36 billion (US $1.01 billion), an 8.7% year-over-year increase, driven by growth in online music services[3] - Revenues from music subscriptions reached RMB4.22 billion (US$ 581 million), representing a 16.6% year-over-year growth, with paying users increasing by 8.3% to 122.9 million[3] - Revenues from online music services increased by 15.9% year-over-year to RMB5.80 billion (US $800 million), driven by subscription and advertising revenue growth[15] - Total revenues for the three months ended March 31, 2025, increased to RMB 7,356 million, up 8.7% from RMB 6,768 million in the same period of 2024[31] - Online music services revenue rose to RMB 5,804 million, representing a 15.9% increase compared to RMB 5,007 million in the prior year[31] Profitability - Net profit attributable to equity holders was RMB4.29 billion (US$ 591 million), a 201.8% year-over-year increase, while non-IFRS net profit was RMB2.12 billion (US $293 million), up 24.6% year-over-year[3] - Gross margin improved to 44.1% from 40.9% in the same period of 2024, primarily due to strong growth in music subscription revenues[13] - Gross profit for the period was RMB 3,242 million, reflecting a gross margin of 44.1%, compared to RMB 2,771 million and a margin of 41.0% in the previous year[31] - Operating profit surged to RMB 4,836 million, a significant increase of 146.5% from RMB 1,959 million in the same quarter of 2024[31] - Non-IFRS net profit for the period was RMB 2,226 million, up 22.9% from RMB 1,812 million year-over-year[32] - Basic earnings per share increased to RMB 1.40, compared to RMB 0.46 in the same period last year, marking a growth of 204.3%[31] Cash and Investments - Total cash and short-term investments as of March 31, 2025, amounted to RMB37.67 billion (US$ 5.19 billion), slightly up from RMB37.58 billion at the end of 2024[20] - Cash and cash equivalents at the end of the period were RMB 12,022 million, an increase from RMB 10,218 million at the end of the previous quarter[38] - The company reported a net cash used in investing activities of RMB 3,221 million for the quarter, down from RMB 5,498 million in the same period last year[38] Shareholder Returns - The company declared a cash dividend of US $0.09 per ordinary share, totaling US$ 275 million, paid in April 2025[22] - The company repurchased 5.9 million ADSs for approximately US $64.5 million at an average price of US$ 10.8 per ADS during Q1 2025[21] Assets and Equity - Total assets as of March 31, 2025, reached RMB 98,084 million, up from RMB 90,444 million at the end of December 2024[36] - The company’s equity attributable to equity holders increased to RMB 73,237 million, compared to RMB 67,863 million at the end of the previous year[36] Social Entertainment Services - Revenues from social entertainment services decreased by 11.9% to RMB1.55 billion (US$214 million), attributed to adjustments in live-streaming functions[15] User Engagement - Monthly ARPPU for online music grew to RMB11.4 from RMB10.6 in Q1 2024, reflecting a 7.5% increase[5]