TME Earnings Prediction
The chart below shows how TME performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TME sees a -3.53% change in stock price 10 days leading up to the earnings, and a +1.47% change 10 days following the report. On the earnings day itself, the stock moves by +3.06%. This data can give you a slight idea of what to expect for the next quarter's release.
TME Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.46B
8.20%
6.32%
Gross Margin
43.62%
13.86%
2.30%
Operating Margin
27.88%
39.75%
10.33%
Net Margin
27.84%
36.20%
14.29%
EPS
0.63
53.66%
26.00%
No Data Available
TME Earnings Analysis
Tencent Music Entertainment Group Corporation (TME.N) Earnings Conference Call
Positive
Earnings Per Share Surprise: Tencent Music Entertainment Group reported an impressive EPS of $1.47, significantly exceeding expectations of $0.19.
Record High Net Profit: The company achieved a record high annual net profit of RMB7.1 billion, marking a 36% year-over-year increase.
Q4 Revenue Increase: Total revenues for Q4 2024 reached RMB7.5 billion, up 8% year-over-year, driven by strong growth in music subscription and advertising revenues.
Music Subscription Revenue Growth: Music subscription revenues in Q4 2024 reached RMB4 billion, representing an 18% increase year-over-year and a 5% rise sequentially.
Online Music User Growth: The number of online music paying users increased to 121 million, a 13% year-over-year growth with quarterly net adds of 2 million users.
Gross Margin Improvement: The gross margin for Q4 2024 improved to 43.6%, an increase of 5.3 percentage points year-over-year, driven by robust subscription and advertising revenue growth.
Share Repurchase Program Announcement: The company announced a new share repurchase program of up to $1 billion, reflecting confidence in future growth.
Music Library Expansion: TME's music and audio library exceeded 260 million licensed and co-created tracks, up from 200 million the previous year, enhancing user experience.
SVIP Membership Growth: The SVIP membership program saw strong growth, with notable increases in membership and ARPPU, driven by enhanced user privileges.
Support for Female Musicians: The company made significant strides in supporting female musicians, with 192,000 female artists receiving support, promoting diversity in the music community.
Negative
Revenue Decline in Services: Social entertainment services and other revenues decreased by 13% year-over-year, indicating a decline in this segment.
Social Entertainment Revenue Decline: Despite overall revenue growth, the social entertainment service revenues saw a significant decline of 36% year-over-year, raising concerns about this segment's performance.
Operating Expenses Analysis: Operating expenses were RMB1.2 billion, which, while down from the previous year, still represent a significant portion of total revenues at 15.7%.
Social Entertainment Growth Challenges: The company faced challenges in maintaining growth in social entertainment services, which could impact overall profitability and diversification efforts.
Social Entertainment Revenue Decline: The decline in social entertainment services revenue outpaced the decrease in operating expenses, suggesting inefficiencies in this segment.
Revenue Sustainability Concerns: The company’s reliance on music subscription revenues and advertising growth raises concerns about sustainability if these areas do not continue to perform well.
TME FAQs
How does TME typically perform around its earnings report dates?
Is Tencent Music Entertainment Group (TME) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
TME Earning Call Sentiment
Tencent Music Entertainment Group (NYSE:TME) Q4 2024 Earnings Call Transcript
TME.N
-1.04%Positive
The earnings report shows strong financial performance with significant growth in revenue, net profit, and gross margin. The company also completed a substantial share repurchase program and announced future plans for shareholder returns. Despite some vague responses in the Q&A, the optimistic guidance for 2025, particularly in subscription revenue growth and AI integration, suggests a positive outlook. The market is likely to react positively over the next two weeks, with a predicted stock price movement in the 2% to 8% range.
