TME - Earnings call 3 2023 | Tencent Music Entertainment Group

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Millicent T.

Good evening, good morning. Welcome to Tencent Music Entertainment Group's Third Quarter 2023 Earnings Webinar. I'm Millicent, Head of IR and the company. TME announced its quarterly financial results today before the U.S. market opened. available IR now newswire and is services. release on website our via Earnings

from our our Cussion will you'll Mr. Today, hear Pang, business call an and start with Executive overview strategies of company's updates. the who Chairman,

Mr. thoughts our additional will on developments. Liang, CEO, and Next, Ross share our strategies

will Hu, results our before questions. we Ms. Shirley discuss for Finally, open our CFO, financial the call

forward-looking as release, refer make Before safe-harbor earnings to to I statements. our you which we we today's call continue, in statements applies will

the most that non-IFRS in today, reported is note And and discuss Please company and be Instructions] measures [Operator release IFRS please which webinar will being explained filings advised thoroughly recorded. reconciled under SEC. today's with the earnings are comparable more company's to the the measures that

turn call pleased Cussion, With to Chairman company. very of that, I'm over the the Cussion? to Executive

Kar Shun Pang

thank everyone, joining Millicent. and call you, you Thank today. for Hello, our

strong services the of even development. We entertainment streaming for quarter ultimately to footing our certain industry-wide for represented of another interactive headwinds on us place sustainable line It in stronger our top live features music are some report the while long-term the adjusting challenges growth online quarter. business pleased an social despite

businesses evolving quarter. by cash become flows As in point, for expansion and a case our more illustrated the margin resilient, have group-wide strong

of revenue both worth particularly in momentum Growth growth. carried year-over-year subscriber business mentioning with into ARPPU. accelerated expansion What's is third registered our This online base subscriptions. has the quarter and music our

and further high of testament the and to user value base strong grew products music broad Our XXX to a million, paying our appeal services.

us existing attract with privileges and ones. new strong offerings, subscribers compelling execution, product interactive impressive retaining subscribers features, content while together to enabled Our

share value our few XX.X, strategy. execution content for monthly from subscriber the pay pleased the ARPPU solid high of the result further way member highlights. to thanks to retention of and success. I'd acquisitions see It RMB engine our and our We are disciplined platform These music rate. will promotions, and a long-term also achievements effective to unlocks to like expanded that dual

beneficial First, deeper and labels artists. mutually we record cultivate partnerships with

Our approach to supported the with insights our cooperations music our across well as industry, partners. and as content holistic users growing strengthened

on strengthened their music-based release several start our XX-year strengthen You collaboration amplify anniversary See For head interactive sale -- Years. song with with well Tomorrow, we as -- user features launched instance, album, and the single. To single, XX-day artists, the contest we engagement of of their this and their bond XX the online for as

to will channel partnership opened YG our be tickets, dedicated expanded Entertainment for with subscriber a concert ticketing further into We users purchase expanding purchases. BLACKPINK's

only formed music not Entertainment, of new addition, a we XX-day a which on partnership collaboration prominent and [ bringing releases. line such sum as grant like start the catalog, in ]. head of song new This BXB, with also but Pentagon, Cube brands and GIDle period In a our us groups in privilege

cycle of examples ratio Each strengthens and win-win our a situation. creates these

all stakeholders fortify Our users for value the also more privileges along music -- bringing with artists to creating our enables evolved relationships industry while our chain. prosperity ecosystem,

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have the her show, musicians sounds CCTV nationwide. on our at festival her ]. Treasury musicians, appearance Satellite As gardens emerging influence TIA for our social original Among we users quarter, by mid-autumn strategic India our organized increasing his Voice variety TV this assisted media, artists, Hulan we explore we our [ with and on the more team Through partnership showcases to help successfully -- the performed attract exposure platform. and and music talent RAY

X also activities rising coming the quarter XX Musician further this had over their explore Music Festival. opportunities. talent showcased us our brands at Refreshing forming Line form advertising and high-quality also up Music Limited musicians year, sponsorship XXXX to the In that program Festival. we Many sponsor Coca-Cola encourage Tencent at musicians Such Summer with

creation, promotion Third, our capabilities technology we enhanced and content in distribution.

convenient functions AI content -- music a user's works, success initial overseas. also music produce its brief third featuring Mandarin, effectively Japanese who the to in in allow -- can recorded music training songs and boosted section, upgraded introduced Kugou languages. generation and Cantonese, also In Some this voice AI-generated quarter a to a of of vocal tool, creators' it and fast produce both Korean efficiently AI-powered production English, multiple content substantially Music's producer creativity. to Through

in TME advancement Cloud Music creators record TME's platform, musicians work. Google project promote distribution musical the to big as and ToMoreMusic and kids, promotion the helping efficiently labels, and such

industry Chinese deep overseas. successfully us enable -- sons Our latex insights and to promote data and

we For music Singapore leases ] [ the in Angela ], help popular during [ Jan quarter. various example, Yangjiang Beast and

the and explore Moving our Tech third school with inspired to hearing X the side citizens. high we it on the our -- in beautiful inviting on most efforts to public Working the and technology ESG. the the students to Tencent's commissioned music campaign our song, support theme quarter, XXXX we continued hand by SSV program senior in joined side launched sound -- with journey. world student, In Music

ethic to help and Music These initiatives appreciate of the music. Garden a influence you we beauty can education to children addition, and demonstrate areas positive the value In organized bring of power range a music remote communities. special from minorities and wide project, Space,

making approach our summary, ecosystem our is and In capabilities, robust. platform strengthening holistic and expanding increasingly and our strategic

We with label subscriptions cycle. and partnership strengthen ] and continue to our our and artists, content our music virtual grow our protecting [ enriching

combination drive our fans adviser [ development in our [indiscernible]. sustainable support industry new leveraging long the fostering broader the and ] and This will support to also technology are run and advancement. evolution We company's our powerful official

for to color platform ahead. turn Ross Now Ross, call I our would go more like please to over on the development.

Liang Zhu

Thank our would efficiency you, sale I like heart the quarter commenting highlighted by platforms. the across that Music gains is everyone. results to begin on the Cussion. of Hello, X TME.

Specifically, are our an strong platform, ecosystems into to scale important AI enabled and us hub. have robust transition music technology increasingly

based one technologies environment. upgraded level, operational AI is expand the our and to music on the of From key our our effort highlight across services products application

our and to creating the support a AI, more of efficiency, quarter, to music models integration third-party with be integrated enhanced platform, user the consumption music engaging discovery vertical. we This the adaptive With integrated allowing an experience. -- better we

First, discovery. content and better connection

our quarter, middle enhanced This we on music personalized and continued recommendation to our each platform upgrade recommendations apps.

in sales. share of record an well recommendations users' new increase a reached we result, to as streams in the number as added a personal the from of As songs

significantly music to also the barriers discovery. We --

Quick Music QQ full mode, users example, to listen quickly chorus its introduced at song's the For Listen song allows [ a to then ]. which look and

[ Music's version well as songs, ] of revamped Kugou different featuring played multiple discovery faster -- song installments. by example, Another versions covers as

our in-car in-cabin tailored our entertainment more mobile consumption industry with models user led and such richer BYD music models. seamless -- premium latest AI leveraging consumption. the for to enrich Mercedes-Benz a as with facilitating capabilities hardware manufacturers, enhance users' sensations. experience To more additional smart car coverage, we including listening and [ more we ] signed Partnering Qualcomm's by computer recently details user the and playlist and In scenarios. and music quality test, extended interface, song use our to Second, music through we cases offerings, better increase

data terms analysis In we of content our of including broadening film in promotion across the areas services, entertainment gaming and animation. music television, production, consumption, and and customized content

Through their a tailored music unique original touch points IPs, works, we unlocking create value. for

-- for [Foreign boast Language]. the blockbuster, core same the the example, Bets No songs and For product More

of Dungeon We Peace -- -- mobile the which widespread produced the original acclaim. also games, from soundtracks have received and Keeper and Crossfire all including

for connections, community medley have in platform and we long experience making music their Third, lasting. immersive -- our user lovers more -- created on our thriving

events QQ social XX Music TME's quickly song and and example, interactive featurings platforms Teens as such across [ These viral groups, went Jay over in-app Chou, media community our ] amplifying dancing launched in BLACKPINK Funko context and For Times. influence. artists

further connections [ making is the provide ] to platform three Airport technology and experience of efficient. increasingly up, user music there to better us sum are value. To dimensions us supporting inspire unlock

Our online music and pillar. business has growth crucial become diversifying

as of holistic -- part music our remain services entertainment offerings. Social

XXXX will the user and efficiencies ahead, ] stay [ For we years laser on enlightening operational focused experiences platform. driving providing, across while

CFO, over With will for a our the turn that, into our dive deep financials. Shirley, to I call

Min Hu

Thank you, Hello, everyone. Ross.

business. by In Next, to from RMB from strong results in a by I'll year-over-year a subscription third and music music advertising basis, billion on X.X of the discuss our financial driven XX% increased revenues our perspective. online growth XXXX, quarter

revenues XX% by the driven total X.X up million, sequentially, services space [ billion, online new down XX.X due as decline XX% sequentially. Our to record and ] billion users attractive app. of consecutive from of by up year-over-year revenues quarters of the further year-over-year, our its both Basically, high high as well RMB at entertainment X.X in year-over-year marking paying RMB XX% growth RMB revenues was and and services. Music were to member subscription was and number Monthly content subscriber X% rate. XXX X.X other expansion monthly amount. sequentially, users adds privileges from This by another [ strategies social user in by QX billion, paying by results ], year-over-year net -- representing reached and grew and online and products of XX% futures, appealing acquisition promotion more up active member ARPPU product retention million sixth XX% of music

growth advertising portfolio highly revenues -- model basis product including sponsorship year-over-year to innovative advertisers. Additionally, the and are our supported advertising as AD a from on attractive strong and diversified achieved

competition branded music campus Coca-Cola examples festivals -- good XXXX, -- attracted young two music how -- portfolio contest music IPs sponsored of advertisers. comprised were of the and Music various QQ XXXX Our our

by pave measures. with our long-term -- control about functions This in several enhancements entertainment we sustainable streaming RMB revenues these and will more year-over-year. development the measures caused expectation for XX% services and of help by and decrease app revenues as certain active stringent other risk and the to as were to our adjustments mainly X -- live was The We way down the in line previously. believe our billion, Social implemented servers streaming users, procedures business. our discussed which beneficial is

Gross margin points was percentage following the in year-over-year, XX.X%, X.X to primarily QX due factors. up

subscription strong quarter. this growth -- our had First, revenues

had expansion gross Specifically, monthly improvement base a in paying both on our and impact favorable user ARPPU, in margin.

Second, revenues gross benefit which a had also our our margin. also strong advertising growth,

we margin. as has our it gradually own ramp Third, positively impacted up content, our

live in labels win-win more As and and a several from years, past the shifting streaming over number than artists see ARPPU, model revenues. to you outside relationships impact subscription here, decline and have margin with increasing --

expenses. billion moving operating by RMB or Now as total QX down revenues by a XX.X% from of the marketing were million, percentage Selling X.X were period expenses on XXX revenue, to for Total same in last and down XX.X% year. X.X% year-over-year. total operating XX% expenses RMB of

of monitor in of effectiveness As were administrative promotion to X% channel the related we down promotions, each Kong those This ROI X expenses the the and the primarily general result efficiency and billion, to period by and -- closely due year-over-year. a decrease improved XXXX. improve headcount same of incurred expenses RMB employee-related Hong was as basis

for was QX XX.X%. Our rate effective tax

attributable Diluted were per and to Non-IFRS ADS the profit billion profit basis. was [ X.X billion, company For XX% ] the RMB year-over-year active per net on were non-IFRS RMB and a billion diluted RMB net equity and the and X.XX, a Non-IFRS were profit RMB attributable respectively. on company -- respectively. X.X earnings RMB of X.XX, holders net of QX, up basis. earnings holders to X.X billion, RMB year-over-year X.X X% owners up ADS our

were September RMB balance of combined was different as base. RMB in affected combined to of cash, billion, billion XX.X balances deposits equivalents a exchange as XXXX, cash of and June XX, XX, compared by our USD, rate with also As XX term Such balances sheet XXXX. change RMB the

announced repurchase March program we of million. In XXXX, XXX a USD share

had we of a USD the XXXX, XX.X total As open the ADS market consideration from of XX, for with million. cash million repurchased September XXX approximately

ARPPU business our focus In such operating trajectory and and users, both conclusion, and with we in on strong in expect our costs a a quarterly has channels. to music the continue prepared demonstrated trend subscription management improve -- paying growth keen efficiencies and by growth

in investing growth. to services, profitability. expect the to our our continue new but keep new We well as long-term overall technologies organic Last, driving as through least, development high-quality and products and foundation not content for solidify

This concludes our remarks. prepared

call for the to open questions. ready are We

Operator

comes question from And Thank you, line Instructions] the the Shirley. from from Yap [Operator Citigroup. first Alicia

Alicis a Yap

solid [Foreign Language] I'm the and Congrats on reverse. result. [indiscernible] the to ask going questions

translate I'm myself. going to

the if to how your wonder management and event revenue business the in expectations your online the on evolve preliminary expect view years? competitive X So next and for music can the growth share you XXXX in I gets

wondering addition, how in prospect if over In growth the the years? and share think macro you also affect the next management could X next might environment year

Kar Shun Pang

us. Thank you XXXX for think for And good year question, Alicia. your is I a

We been music ecosystem, expanding making actually business a much have number resilient. mix transitioning our of aspects. and is our This factored more in

First, taking our and sustainable. social quickly proactive the it to entertainment facing, we live responded making industry, the business challenge adjust actions to more streaming

mid our evolving of like ecosystem while core the Secondly, prosperity music revenue advertising music robust and And and growth, we business continue online to environment. subscriptions diversifying macro streams. our drive thirdly, our the record

second our this quarter and financial So in you results. can third see

we For opportunity to subscription our have to business subscription that growth of XXXX, and assuming growth going expansion to we expansion line external a continue revenue well. the see think overall as the will drive we and by stable compared ARPPU online with drive also music XXXX, to and especially, are growth driven our I solid margin top environment,

we Outside merchandise the from healthily. of subscription expect revenues continue grow initiatives artist as to new and advertising revenue, the such to

the continue strategy entertainment social execute factors current with the the competition. we backdrop to operational For will services, of macro and our

and Before, the stabilize primary target serve to our users. core our is business better

generating business ecosystem, flow part a our As us. music to expect for our holistic social of cash healthy we continue entertainment

point so far both results to our drive and XXXX expansion. to For margin strong in net we continue aimed earnings, and XXXX gross

the the X of I businesses, X lots core our For next especially TME's outlook, years still over years. music to services think have online grow room

well. to opportunities potential growth excited more in as from including see long-form are We audio the advertising the existing areas, and ARPPU the subscription,

as capabilities extended we addition In and have rich music entire services our we online to well, the -- the chain. being value along expanding music

music increase merchandise developed market And our streams. monetization new and models live diversifying these like artist to festivals, with successfully our performances have revenue more. We the include the target concerts addressable and

initiatives to all a growth. the areas for long-term believe still early into built have that these more tap stage, With strong we in the we foundation

glad content to continue So opportunities are strategy amid that in businesses great a nutshell, think future platform I show current and dual-engine the we are our confident core that that growth. resilience environment. our service music the we for our and online more like healthy will macro capture

Operator

comes question Poon line next Alex Stanley. from The Morgan from the of

Chun Poon

question Congratulations especially quarterly management for to is a growth. very strong related results, ARPPU the subscription business. My our

have and we and quarter, third So on year-over-year high record absolute a also basis. growth number achieved sequential

we [ X because deflationary competition promotion years East and is our with Net much this continuing macro us? still growth lot renewal charging also lower the of next are we XX, there even a Double which X, is how price trajectory? auto RMB price than users paying also still is of at have than forward, issue, blended price, our lower for ARPPU very strong do so about maybe a a XX the should think Going visibility the environment in ARPPU because How ],

Min Hu

That's adopting actually -- at attractive regarding the strategies. benefits we're area downsize events same and show able for of we Well, actually, a maintained X quarter, make our also the for you and ], be also And adjusted the we raising Thanks . Well, our future and that membership it's make actually at to growth policies. Well, [ we also business users. already this in more we And [Interpreted] the our rate can promotional Therefore, price to retain time, performance. RMB effective good subscription the QX continue confident concessions our for growth. time, but rep the subscription still for because some year discounted very consecutive are business operational also XX.X. the question. our we say this quarters. the the we regarding proactively will very regarding revenue same

the You're asking the very and also we're confident happy going about grow we and QX are also to performance, number.

to of industrial further then actually optimize same own for you we're competition, about and also operational And asked years. eye the to RMB your keep mentioned, XX next our an on and elements going you the question, our the the factoring outtake for X like to is X In part fee example, performance. the inflation around our mentioned you and

Operator

The the Bank next from Lynch. from of question comes line Zhang of America Lei Merrill

Lei Zhang

look margin reached can XXXX. share and Language] [Foreign high in and trend how record since Noticed we that should And of gross margin? pretty entertainment terms quarters margin in track past And on you going forward? of us with music social the at business trend gross our is the the

Min Hu

XX.X% the increased by Gross factors QX, as to is in due X.X% margin year-over-year follows.

growth positive revenues in a had had paying multi-ARPPU, gross improvement subscription margin. music First a user and both on our in impact expansion significant space

growth the gross a margin. of robust favorable Second, has advertising also revenues impact on

our gradually ROC ramped which content of requirement of our we content Third, costs. and content, ROC up gross self-owned increased Fourth, the model we cost optimized margins. benefit

revenues than ratio Our net online music was growth content costs. ratio faster of

of of Five, after advertising a impact membership rising strategy basis. operation year-over-year margin. and social -- the a form the related And from license technology had entertainment long equipment. to have the sixth, audio of in and to our seven, optimized revenues brand increased, live on proportion our adjustment streaming and capability revenues at decreased cost short and service And improved business, gross utilization and which favorable

consecutive Our gross quarters. for margin X has improved

forward strong revenue we will and continue expect growth. to advertisement to QX, revenue be Looking subscription

by -- year, will look live items will our later we margin revenue On be will gross margin positive to to X on than gross decreased will will increased, content year. have next be sequentially monitor but efficiency expect our model. our degree the the in our in-house cost continue in be will cost stable impact forward be gross we increased will expect the increased streaming our increase we and margin, a next made side, expect be Despite and we -- and QX, this operational

Operator

line The comes next to Sachs. question from Kong of Goldman Lincoln the

Lincoln Kong

business. about question my business, subscription is So the the --

[ chain, all, enterprising can passed advertising, on into you the management stay single so fourth et [indiscernible] the bit cetera? we ]. So interesting, of how in third a particularly outcome, first terms the more doing supply trend in including quarter, elaborate investment just business We're this as a quarter digital

see do or the So what have we potential about areas And -- the how ramping quarter. still we think growth think XXXX, when are this year fourth for for enterprising see? up [indiscernible] we we have

Unknown Executive

your subscription year. Thanks [Interpreted] this question. and double In to business Well, a going for the we're of QX year, of the performed business as the maintain what QX this good do the shopping advertising for to as we're festival. long QX in year, because of in seen we regarding we've XX have believe growth going

from like the and -- to business app. Well, also in performance QX out we Super on total efforts our with the functions regarding mobile and the business, down going We're positive couple music solutions, believe to going intensify effect would rate XXXX, the the we economy to or going would do would in-car membership regarding continue be we're our outperform for still grow, of family base the -- providing keep XXXX. Well, XXXX, and the subscription advertising outlook also regarding maybe believe household our slowed XXXX, compared the membership to music a the QX. Well, but working year, application additional over of VIP the growth to application. in brands. also roll the we So besides up regarding to XXXX. next continue and and in in revenue subscriber And grow we're continue model our step to like efforts the business, and IoT will the

a the in we'll So and the -- to deep and we're advertising year going we sure along year, driver the promotion we're able commercial next the going of offline would business maintain promotion, concerts mode, our regarding between events. great next target what because XXXX, and a also same -- to going mentioned ad-supported regarding growth our in also commercialization This the to advertising revenue the events be XXXX. besides growth our business. for and . Well, efforts we're to intensify make as leverage for bond be we with our find growth

Operator

question Chong from The comes Jefferies. next Thomas from

Thomas Chong

LLM. My question is relating to AI and

also user the And over X-year with AI. AI and been important have we creation to in kind we next engagement, the get our color [Foreign and couple strategies, Given -- of and years? musicians spending should of LLM so also level is some what content on our seeing supporting what of just driving expect Language] want to regard

Unknown Executive

believe going and questions, is a [Interpreted] AI-related company, question. the been to the AI the very Thanks for believe years. for Tencent. ways by going with what our -- next strong has force driving I We Well, we're robust regarding few provided to parent be do

Group Tencent our to not going by continue already because -- going relationship for Group with some and and their with -- to to business due Well, we're also system, its -- our we're the more do produced model. research for to -- actually, leverage released to Group Tencent basic Tencent models, has

application our is business Actually, driven. more

do industry, with to language the So to in near support be able going [indiscernible]. leading LLM the the existing solution we'll what the believe integration. to to And the seamlessly we we're that future models is great leverage in including to fully do switch

committed As and making And probably accelerating production this especially so the trying fully QX launched cost, music system also noticed, are continue platform help work and our the model low to to our boost us going efficiency. to of part can they're model model be a it you our -- in we the that in have also year, already we use X.X. of connection

that LLM to to what existing the years, leverage application. do X next you its we're expand say to trying still also continue is can Well, in the

the user are product with find to also LLM. allow already the music, having chat those and based the together each we also out to by listen same other the have to models, updated and example, is on the listening been also the Q&A improved. For we can In greatly chat other able efficiencies that it words,

actually been compared trying Well, results AIGC been engines in fundamental research LLM, at And has adopting video, mentioned, preliminary improve to also commercial and the in with same I industry what of live already the and our the the is the results time, some we're what capacity. performance. we're some graphics has in and achieved harvested audio you already in our and streaming in know leading

not experience explore diversified and suite. continue music creation invest will innovation to Last that least, to the to ]. in AIGC and creators for also enhancement. technical near join our vital We're improved user the that lyrics immersive hands this we believe continue a in and we content and so to play will music can the In we provide the also It room music create the going industry. personalized, user developed future, partners with a yet more [

Operator

from The next question comes from Alex JPMorgan. Yao

Alex Yao

Can you hear me okay?

Operator

Yes, hear we now. you can Yes.

Alex Yao

marketing. a sales and on on a I quarter. have congrats question And good

past quarters. successfully sales, potentially the been have the very music revenue and guys activities. rationalizing and significantly integration of towards mix few -- spending more shifted online/offline marketing sorry, on the offline back music the past You The years in few involvement in has

expenses think are year, we strategy ramp For in forward? going to quarters? up think more we How see next should example, this few and potential even flattish the will focus a increasingly gradually and you or with sales more offline the modeling on year? activities, music sales as Or marketing the about, going marketing lower versus slightly should sales next we still about

Min Hu

to we're our your invest returns. regarding because actually, we the the future, are still Thanks investment Yes, well the going indeed, music the few business will question. expenses. channel to we're manage been . Well, ROC confidently to the do for as improve music in able managed of expense business. we has we for translate to sales well our adopted quarters, we and the believe always adopting into profitability regarding first [Interpreted] going the But ROC, be our

self-produced probably content, strive other also we're or better and we to you As launch events notice to activities. for offline and a on going side, co-creation more continue may and the

so. activities and So management need But efficient for to words, other sure, we're ROI highly effective. investment our more methodology, adopted we promotional the going in do so to is because

Well, XXXX, events. with regarding packed the QX of promotional the and noticed, is marketing QX you season as always probably

expenses year. sales I marketing So think as what same in our be of last the year QX we and this would saw

marketing value perspective, regarding with I the do XXXX, So investment truly the absolute the sales But be it growth. believe some compared revenue the and might from expenses, growth, our is efficient.

Operator

question from from next The coming CICC. Xueqing Zhang,

Xueqing Zhang

Language] about IoT. on the Follow-up [Foreign questions

in also As will mentioned future. expand before, IoT you membership the

monetization so about should the And --? are think long-term our your and that of about in ask the users? paying scale what's IoT like to future? And many into paying I'd to user them question What's how the how plan potential? convert we And

Liang Zhu

[Interpreted] Thanks, Xueqing.

at the going time, the and the TV strategy the where, further loud same we IoT the Regarding growth for we're also up . expanding the in-car efforts business, user our is to sure business our service. to for make have in a step healthy very base speaker

future loud the be you speaker and TV for as the noticed, probably limited. growth the So potential because might business

the So user a base. grow up we existing to into making sure and have we deep to monetization base we're now is doing try the also good very sure dive in and can existing what customer making

we the regarding growth costs. grow, vehicle Well, believe regarding service, also to the in-car actually, as industry we new energy China, with attached vehicle in great see ever-increasing new intelligent also and energy to the the we continued importance

and the sound the time, domestic very at actually, relationship our in the and with the that to regarding strategies we're way the regarding OEM content We're same OEMs quality could a we including still business, good auto be well for into auto their Tesla. cockpit. Well, in-car effect. the sound even for lead keep the driver the make us, to going going So sure and provided also

X past and service. in-car the car, users, sound enjoy our we And making their also they the we're absolute really service also the high-quality from the our technology perspective, effect, is the from in -- in-car XD high-quality make indigenous when for service we -- in have better primary also in the the quality sure with value and continue sound So the years, to sure we than effect quality sound want are sound and that case the service. the they can also clearly up us. Well, mobile regarding

user. is a into the our doing trying more we at expand to to service. time, user leverage we number, noticed we're the what in-car base also While, them grow for and going the customer to strategies paying we're base When commercial turn to same now activities to the certain that

Operator

Wei to the question time, Xiong Due interest UBS. from of the from we last take

Wei Xiong

a around good quarter. shareholder question returns. My congrats And on is

So see program the the good to past quarter. buyback of execution in

how buyback? about ahead, the determining of we what the And timing think drive of to think the better Looking factors consider And and what the in returns? do maybe are shareholder the about we do also execution? buyback we pace ways should pace

Min Hu

In million XXX Thank much. QX this program for we shares. of share [Interpreted] USD you very a A ordinary repurchasing repurchase the year, Class announced

XX, of million. we million the XXX market XX.X made September USD a of repurchases total for XXXX, As consideration open of approximately ADS nearly in

and values shareholders. for keep an market, continue the on to trends latest eye especially also capture our opportunities the will We to market more create

the also will further the time By keeping opportunity market, consider we on repurchase and our eye if program the arise.

Operator

the over call that, for turn Okay. Cussion to remarks. closing I'll With

Kar Shun Pang

for you, us Thank everyone, today. joining

goodbye. questions, so again with further Thank and we have free team. contact quarter. you and forward you you to call, much, this any And If to IR next today's please concludes look speaking feel TME's

Min Hu

Thank you.

Kar Shun Pang

you. Thank

live English on present transcript an this were by call.] in [Statements the on interpreter spoken

Tencent Music Entertainment (TME) 14 Nov 232023 Q3 Earnings call transcript