TME - Earnings call transcript Q1 2024 | Tencent Music Entertainment Group

Due to licensing restrictions, you must log in to view earnings call transcripts.

Millicent T.

Good evening, good morning, and welcome to Tencent Music Entertainment Group's First Quarter 2024 Earnings Conference Call. I'm Millicent T., Head of IR.Â We announced our quarterly financial results today before the U.S. market opened. An earnings release is now available on our IR website and via Newswire services. Today, you'll hear from Mr. Executive Mr. our Pang, Shun Chairman; and Kar Ross of updates. our CEO, who an overview will share company Liang, our strategies and business then Ms. And we applies to our Shirley financial harbor forward-looking statement questions.Â Before will statements. CFO, earnings safe call continue, open release, as our before make which we you Hu, for this the refer discuss I in call to our results our we Kar comparable which measures the SEC.Â [Operator Executive company of advised under filings to will are today, more to being is Shun, that measures reconciled and thoroughly today's that, note that the Please the Instructions] Chairman in I'm turn non-IFRS most reported IFRS release to be company's pleased TME. and explained call discuss the call recorded.Â With And earnings please the with over Kashan?

Kar Shun Pang

overview understanding everyone, and vitality Thank totaling start. a to thank music-paying healthy and growth growth All our platform XX% yielding online you, million is this number $XXX.X the joining overall expansion. strategy our robust margin net significantly content of users users' you music the great XXXX level. today. of demonstrate increased our million, dual-engine pushing Subscriber Hello, was to more, is high of adds and keen strong this drove we industry-wide. announce share have a we net original results Melissa. In ARPPU call seen growth first year would program, content of off of and balanced quarter, shareholders.Â Next, of discover enjoy Strong meeting a supported in are revenues.Â Our and a profit future anticipating very to the the the sharing superior our also top of the cash in strategy our exceeded with Through execution for users success trendiest demands quarterly in and at impressive expectations, a in X.X which platform. On quarter for historic a in by in to high-quality to confidence policy on of reflects our an dividends latest neck maintained we achievements USD like our dividend annual experience content, you development our of release, to our efforts. and enable XXX cash commitment an operationally.Â As I and for XXXX. needs combination buyback this pleased our music ongoing the earnings and content fundamentals, growth and million our copyright their quarter's

few over go me a Let highlights.

library's and partnership record popularity. and reinforced we comprehensiveness our First, the with music renewed to labels broaden

and value Atmos Dolby new start licensing, services features innovative head industry-wide.Â We Fengjun unlocking upgrades groups Entertainment, Time Times. XX-day TFBOYS popular benefits for from and value-added expand further content Tintin featuring like the songs and renewed on promotion cooperation Our of our music with adding

in industry-first agreement our our interaction grew a streams its ITC thing success new iconic promotions protection, commitment digital interactive ILEC, and connect merchandise within user AI users primary authorizing the fan content TME's and concepts, content. use our in long platform, off-line and our on with expanded ensure PME enjoy features, incorporating spurring artists scenarios. K-pop for groups Live new albums, artisan year-over-year. recent one Rice we to for on of Music, also and use Monster, TME This and generation tech-powered Baby enriched is We feature both active promote first engagement to activities, various relining era.Â Active offerings with HIM's the quarter.K-pop showcasing like and We AI licensed an latest TME's component the is benefits C-pop International and interests copyright [indiscernible], HIM in AI, the responsible and rights win-win. features authentic will while a which from protecting to

boost our and that quarter. original the produced to OST trends, Wangjing. showcases Their value expos, key TV viewerships. TheseÂ [indiscernible]Â create outstanding attract featuring support our to of million bust this performance Video, by Next, the social streams collaboration and media content, of dramas, a heat we massive release, partner expanded it coptraks OST an Tencent for features and Based ecosystem. XX catering debut delivered key the differentiator tastes days of trends to of while users' content.Â Our and SME with XX theÂ [indiscernible], over by within on also graphs of as our to the original It's the and songs including making ever-changing contracts of engagement. the a within set content year. Tencent streams power for we users array ability artists, highlighted #X for such maximizing Itai, matched webcasts We XX this Jesse, produced TME's enhance region strategic XXX

also and We to Indian musicians music promotion and quality artists on music strategic production partnered performance our build offering. with

amplify offers with rivency Tencent our then to host on on boost other music's an year conclusion, top with by Our more Music our value.Â In carrying by deeply the and media introducing autism. resonate is includingÂ [indiscernible] Charity We artists this exhibition and inspired songs We continue that autism users, autism children content featuring groups, to year,Â [indiscernible], musical cell responsibility. consecutive platform development. leveraging social to these tailored rate children share FIM works, strengthening a with of to producesÂ [indiscernible],Â became drive social awareness. we with third message If XX social more the than multimedia our industry renowned drive artwork has on for this cooperate in commitment support program by expanding shape quarter.Â Moving to and our also

more ever-deepening Ross, our platform growth I would and dual call XXXX beyond.Â Now our that for powerful in sustainable development. like the content understanding go turn over color to to of Ross We propel will are ahead. and our platform and engines confident on content please

Liang Zhu

execution net this music Thank online ARPPU, high rates, you, Kar record Hello, once again robust steady in andÂ [indiscernible],Â all Strong resulted everyone. growth, shun. subscriber solid reflect performance.

it, force utilizing the our users insights extensive efforts experience retain driving and attract behind users and industry prelease and Our to content. were into

enhanced and journeys.Â First, anticipating minicar with on user needs experiences laser-focused retention. users' XXX the want on are I talk about to meeting We

transiting We through engaging approach I multipronged innovation walk have a constant features. will of few through examples. taken you a to users

AITC Our music and audio of high-quality helping large the make models that more content. songs the a accommodating. results quarter, show promoted promotion In users engaging, model launched discover Initial we applications the increased share music accuracy, discovery fun, increases more released. following new notably live-streaming that first

as the can supports they points key we playlist rewards indicative users' We vice introduced as AI benefits playlists, personalized such an also more personal stickiness.Â Recently, that for that aircons, rating AI and for tested system subscriptions, experience assistant digital as strengthens search to customized an earn a an curate site a music well trail, privileges. exchange program. and Users tax

future. experience, While here. Ongoing avenues upgrades the reinforce opens our commercialization products for platform for new enhancing user the continue to program also

This quarter, light environments. bandwidth mode,Â [indiscernible]Â to a we facilitate introduced small listing low in a experience leasing

greater customization platform our adoption user allow players. interface increased enhancements of driving Our

leasing the filters interactive captivate and strong a only artist we streaming Beyond volumes but budgets, gas, boasted more experience, variety favors. more. posted same-song These also activities, with of interactive including subscriber not users and additions to contract follows

from to to music their loyalty so acquisition. as Aside platform grows assets, user TME.Â Moving now personal our

on is potential paying cultivating discovering here operations. refined focus long-term and marketing through Our users with and

seasonality, users roll demographics favorable under effective across reading activities. series of utilized a to understanding out we various Year, promotion New Chinese our During deep of

video contributed quarter. targeted in growth platforms to the stronger-than-expected Our first subscriber promotions multichannel and operators, with long-form e-commerce, telecom

partnerships, also same and broadened in recently up share and all This focused launch we teamed our with new to also activity, auto Total services.On users with rideshare increased reach We playlist common enhanced sequential online Cushing. promotions. music user we partnership holiday to with our recovery sushi, leader, positively collaboration companies a pre-installation the to organically Xiaomi on our contributing MAU

music construction, extending reach. features red offer Our passengers new self-service easy-to-navigate real estate music our selection further share

Thanks do, time popular engagement. artist in XQÂ [indiscernible]Â for our creating to inspired continue Shirley into This we that and music call the acquisition product core CFO, the first base.Â In rich transiting that, off-line content our online financials. the fill included heart dive for paralyze new reinforced we to young committed our to Artists remain a active Hu, appearance rewarded participation and user to more funds our merchandise line-up of short, our performances. users among our a Meet, user needs with online user the artists a event turn Our will and of over futures at offerings and deep tickets I everything trust.Â With offerings, With platform to more.

Min Hu

and you, I Thank greetings Ross, will to our to now turn everyone. financial results.

X% IFRS's services billion, financial net quarter billion.Â Our profit revenues Our to year-over-year. to operational by success for efficiency increased X.X were of the profit monetization by X.X and first and net management in billion, down effective total to RMB X.X XX% RMB RMB need music XXXX. results to by XX% continues in year-over-year rose do

driven revenues X.X subscription year-over-year rise first marking business, revenue strong X increase in subscription on significant Our in growth, increased online online the of X% reached services our the first music increase offline the sequentially. performances.Â Music and by the of from by XX% billion, the entertainment advertising services. and our was achieved billion offset year-over-year supplemented expansion decline In in other surge revenues revenue quarter growth XX% by in music largely and social which to This RMB basis. XXXX, from quarter RMB the revenues an a music a a

the online days representing users Taking in our ARPPU the a refined ARPPU quarterly higher-than-expected sequentially.Â The from number enabled maintaining to would was million, music-paying year-over-year the while increase X.X Our of subscribers Monthly a of adds was of and operation achieve healthy into ARPU. pricing monthly have stable remained XX% difference net consideration, in period music million up strategy last in $XXX.X same growth number relatively users. effective a X.X% year. and us monthly record-breaking XX.X%,

privileges stickiness. incentive improvement products upgrades our content experience rate. strong and attractive the to in more in ad-supported our year-over-year which the offerings primarily active due the futures and to member ad Our and attractive made provided advertising. improve also our users, We revenue upgraded growth dubious more enriched such user have as entrance growth a enhanced helped Advertising had and

formats.Â Social year-over-year. in revenues procedures and adjustments were in measures risk active suite billion, XXXX. We innovate quarter as to diversify we comprehension the entertainment functions stringent other and more This mainly XX% was second continue enhancements down control advertising live RMB X.X our due several and to services since of product service streaming certain and and implemented by

stable.Â Our subscription marking expect first, gross to reached to benefits growth has adjustments for online relatively services music As procedures a increase scale. revenues margin due economics QX largely our points the generated percentage XX.X%, in year-over-year entertainment we of and of advertising few an of remain these of and X.X social completed, the factors: are the

with bearing start fruits. years, the artists significant music relationships and efforts investments allowing made built win-win industry we to have the investments have and Over and labels efforts and in these

our margin ramping favorably. our the Additionally, of impact up to continued own content

also and model.Â Moving XXXX, and the above racing membership streaming expenses. Lastly, marketing ratio to a were monetization gross In in also X.X All to X% down XX.X% we total improved operating amounted of margin. revenue the XXX optimized our enabled first have year. live us on which collectively market have health the the sharing quarter last same Selling for of they billion, benefits year-over-year. revenues period to and advertising, in representing to move the compared XX.X% million, by with our expenses RMB RMB factors

spend We content to driven million, will promotions.Â General perspective year-over-year, lower XXX with X% growth online and RMB in areas music expenses as primarily employee-related expenses. administrative such down as a by as by continue were well long-term

the increase in RMB was tax This subdues be by effective of million to to to of compared primarily XX.X% reporting to back XX.X% period tax was rate of related XXX offshore QX earnings limited entities. the PIC our Our XXXX. to for attributable same

non-office attributable impacted attributable rates X.X profit also profit entities X.X RMB and X.X corporation changes of Non-IFRS Additionally, to holders effective ] active in billion net billion, the and to our certain QX profit billion, holders profit were tax and were net X.X RMB our of respectively. and net XXXX, company [ RMB tax.Â For RMB company the agrit billion for net respectively.

year-over-year. equivalents, These per the The this year-over-year. robust combined the earnings to program.Â As at was in Non-IFRS RMB and ADS XXXX. December program and X.XX, up RMB up Our quarter diluted beneficial cash different XX% combined share results RMB efficiency, changes as repurchase impact diluted operating billion by with underscore ADS per March reached our our high This in to XXXX. XXXX, XX, record repurchase performance, March enhanced of affected cash, balances of RMB of XX% RMB XX.X was USD rate as were XX.X financial X.X, deposits dates. a of our compared billion earnings at balance balance exchange XX, term also announced of share increased

XX.X million USD of repurchased which repurchased XX, approximately million, quarter. XX we the total As XXX.X were XXXX, first million from a consideration open of cash March in had the of market for USD

to invest AITC. as well music confident we content forward, the original our our products technologies, and the suppression prepared and will such as of high-quality business.Â This as Looking concludes productions continue advertising content in prospect new industry remain and new in We remarks. and

We questions. are your now taking open to

Millicent T.

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

Alicis a Yap

solid outlook. My results. the XXXX Congratulations on the is question for

revenue? the a growth the set after comment results, net rest with year? we second for strong of second So for the especially trend also for quarterly what And the for rate ARPPU expectation and the quarter record-high net expecting total the music should trend achieving be of and also add adds, overall quarter on the the online any

Liang Zhu

your much, Alicia, you Thank Okay. questions. so for

online on revenue music and previously the subscription XXXX, is also better For and track, be than our the slightly anticipated. profitability year expected well full are of to

subscription the ads for are exceeding expectations. I we pleased that side, the to that our really is QX, So in quickly think see net

XXXX it a are a the exceed projections confident than committed the be start our to yet our slower really So that healthy XXXX total strong really the year and we slightly hand, Therefore, net remain which business. on for gives XXXX.Â But of we initial for adds the will total year, growth long-term this last than us year. of greater in is indicating really other

XXXX. growth discount. recap, a I due So the growth to expect compared think to continue last to to modest primarily we more side, year-over-year, I full-year expand the although year-over-year the year's To rate think rapid at on a ARPPU of scale-back was moment, it

couple QX variety which to be So long-term of I potential, operational primarily to that better based our the add of ARPPU expected to of have and and half ARPPU year, in unchanged this compared like would to on year will be the reasons. strategies. this level expansion operational a by of throughout a some in we half.Â However, a of last expect year's healthy user we education A ARPPU first confident supported growth experience slight introduced when and also benefits than points optimization we second is couple of the the should remain in due

I all, typically especially QX the season entire year, Chinese of to First due Year. the is peak the for think New

we promotional to willing pay entertainment. attract users for secondly, more effective which also So expanding the are users. more And are activities, high-potential

with merchandise business, business, expand and well. subscription labels remainder continue subscription good areas, the rolling multichannel in this expect we this the we we over strong food and growth that we year to the our think adds and we advertising we the QX in few as XXXX I across return I the So sales had as and strong and drive net to base. of be But also think I sustainable the products promotions the that normalized user different loan growth significantly seasonality, and think year, besides as for more start the the quarters.Â So innovate solid offers seen to communicated in levels a next of patent, should artists and

Millicent T.

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

Chun Poon

on on changed quarter. still how margin a My question significantly the structure gross XX%. social QX, gross XXXX? almost related rest to had seasonality management XX% from the for management expanded how margin. think strong have about is both a we and to cost Congratulations gross we margin revenue we should In And advertising basis? of Can share sequentially sequential negative in while entertainment, and the very

Min Hu

QX in follows. an The reasons are of year-over-year, several increase gross margin There is as by increased quarter-over-quarter. X.X% X.X% X.X%

revenues significant advertising subscriber and growth. revenues first The have music

milk made artists. and have industry efforts with and relationships built investments labels in and the we Second, significant have

focused Additionally, more on manage to costs content we efficiently. ROCE

content, revenues online live than revenue all margin. positive ratio revenue Our cost.Â Third, the strategy. decreased leasing platform streaming advertisement margin. gradually above of gross sharing on live stream revenue self-owned ramp the optimized which revenue streaming gross up higher gross The sharing ratio music growth was is benefit decrease, the even the we net revenue of and content a on our our we impact increased the with and ratio Fourth, live our

has Our quarters. gross for consecutive margin X improved

to expect QX, in-house forward cost will have the and our advertisement growth.Â On Looking healthy revenue cost continue side, impact positive faces margins monitor each made contract and will be to continually, for we and our we we subscription revenue on expect will a continue increase to gross operational model. item

of the QX in XXXX, and half expect We continually expect margin in will gross we second our gross also forward margin our increase increase. will look

Millicent T.

Sachs question And Goldman Kong. the next from comes Lincoln

Lincoln Kong

strong the on quarter. Congrats

is question my music specifically services, about advertising. So online

terms what comment quarter? new you quarter first in by so second advance company format format, the anyÂ [indiscernible]. of management could the And on into a what the implement? seen different thinks And have and aerating So to in are

Min Hu

for very Thanks And your [interpreted] such QX, I advertisement service question. strong QX, going the a much. in Thank very growth. maintain Indeed, you for we're growth. have we a to think in strong

not the base. You on we we're for key the think are I know non-subscribers. our advertisement challenge how of subscriber is expanding But to elaborate traffic the that going the

can already can this provide is optimize regarding Well, interest we operation.Â You So traffic now the say and the that very because the registered us. of are very to continue more business. advertisement that see up continue the performance We a a year making need That we're see also do go the solution from provided for for the to we start attractive to going to can year. good what package the operate optimize XXXX, advertisers down to we the continue we traffic and you to from to way having subscribers. sure nonsubscribers we regarding

of more the can this strong very revenue business. consumption growth. from the coming launching I advertisement large-scale what think key see Chinese the QX a industry, gaming e-commerce, growth least the promotional faster we content, At have year. year, from the to they income, we Especially, maintain I and for year, QX industry to the have to the and the contributor for are the this from new we're a stable going during due especially information, activities

about opening to business.Â We're growth say good channel the of we're of XXXX. So QX e-commerce have year, that QX regarding the this very talking coming advertisement from in also we the

occasion And the we're that, QX of to of prepared year. to to last compared online. to continue very by I formats think shopping serve in able further the going to we leveraging key advertising we that great leverage that advertisers many e-commerce have X also be the more festivals enriched the going way, serve we e-commerce are would because roll advertisers.Â You serving the will to our this ecosystem ofÂ [indiscernible]Â to and that, besides also solutions business have hope and diversified be music In that good with events order out we're to diversified the continue model. we in know advertising growth

For in well offline example, advertising, for our the combined it performance also be and with investment could concepts.

advertisement product models solutions. we to leverage approach. to to that QX housing In based of coin. As we advertisement models, business.Â So and be of will we this competition, of advertising the at revenue continue the time, continue is business we be that the you new X a a price say investment matcher will advertising, I that upon our that mentioned, in user the start same the we regarding a way, sustainable also hope to improve grow for full do while launching full the advertising, stream new these By to portfolio mix sent-based of can based advertising for able year, a launched and retention in able have upon to contracted business

Millicent T.

Zhang, BankÂ of And fromÂ Lei America. the question next

Lei Zhang

have the maintain especially [interpreted] the I Q-on-Q to My trend. mainly consider and largely MAU and sales regarding control we our sequentially the on sales the best is stable. marketing trend, marketing question margin

the the So and how sales and the marketing and should driver we quarters? margin look trend in overall at the following

Min Hu

Thanks very much. question. you your [interpreted]Â Thank for

the events is for conducted about we of to a Y-o-Y this. a this we solid basis.Â When the low promotion of year, down performance. talking our margin, our the season near of on about GP the and basis. was this baseline margin. That Actually, activities transitionally the believe in the QX each year. QX our in about growth for MOM GP marketing matter very private brand seasonalities future, talking do I going because and we're should Y-o-Y Just going continue or expenses, in majority mentioned registered year of in marketing sensor, grow QX expenses, significant the a MOM considered in to of And being also of a the rementions ever as it marketing be

we're in to platform regain with to our regarding to the do reduce less But is events. going our I the driver and the business. And my music serve we our can expenses of This the order marketing channels.Â Where should about in as self-commissioned to So future extend in the self-develop marketing also is Well, at place, our say well-established content. accept or channel continues improved. a mobile also launched for second the platform we to I time, QX, for be point say, the traffic the we're that going monetization content, same more who going key the management assets streaming. upside especially expenses in marketing the

make a investment content promotion. going for we're good So to

for the also same we initiative year, cost like At the and in the adopted time, to year, and the but for the new example, XXXX.Â So essentially on and speaking, would G&A next, investment what this overly past made have And we're continue the the of actually, rise, going coming QX new continue in and the in already line be downsize foresee for with products, expenses, in full BGC. we XXXX year saw the me marketing on last will to expenses expenses team. we comment investment X we So year technologies for marketing the let team.

with regarding XXXX. XXXX -- be generally in with total believe in in line GMV we G&A, line the expenses speaking So do in XXXX would be would

at revenue up, GP expenses will same we this So promotion the year time, fill you the HX overall as speaking, the we expenses. the in also to where and stabilized G&A continue go grow Also, the see, we of margin. can

improved.Â We for net So coming profit rate I the will profit net the believe year, full are be do that and next. the

please the allow talk rate. tax to So me effective ERT about

the been company XX.X%. reason be to has Regarding of QX dividend is in the The from rising made the effective rate, it onshore to offshore company. this needs the key tax to because year, payout

So we're to going theÂ [indiscernible]. pay for

So is that's the effective in generally that the and in reason upward.But QX sum tax to XXXX, net rate profit quite QX the impact going it's on the not the is rate much. speaking, small and net profit

So net for in I do to foresee going net on and riding is profit XXXX profit the keep theÂ [indiscernible].

Millicent T.

question Jiang. next the And Macquarie,Â Ellie from

Ellie Jiang

great It's on conversion. to results. Congrats great music the paying our been in very see improvements

the can just So the shared users, existing AI that opening versus on engagement. the driving users Also, you if shed during some X these the and newly better management cohorts. been pricing light acquired remarks, between some average management very user gaps exciting compare wondering initiatives powered have

for customers recent share trends whether next Just month's the of could wondering be higher operating retention and leverage can there the road. down on kind for more you anything value lifetime

Min Hu

[interpreted]Â Thanks question. for the

or the Regarding the and customer, many just to are the our going have them, users, customer our long-term because very we're user, rate they to a that for of do yes, service. if high means retention existing them we convert existing renew continue indeed,

scaling engage users are even will regarding promotional to the those users second discounts users helped and can existing acquired we part user some subject I users, in provide rate that we rate model some for first. our we the say the activities order conversion the already sometimes clear it's to would promotional activities question retention. empower if have the But activity mentioned how back indeed be newly of timeline.Â The Well, the high. of as very our with the new in promotional just retention. now, conversion of our be go of let's discount, actually, to but mechanistic and in ground the large is line change the AI to So

from and is model we're as model, about generously our platform, large recommendation network and on having different talking by models music the to great platform, recommendation based able the the and believe was it improve newer I be of will into language capacity the speaking, the large the we continue For today. existing system capacity. those parameters search do set we're to introducing But

As optimize you see can us to continue the can retention. from to and that help actual our US operationals, grow

overall technologies, positive leveraging retention improved.Â Actually, rates models open-related. video this generated also of the by drives, indeed, you large In from about and year, which of has So technology. model talk when those very self-developed our seen the QX caring feedback we minicam launched already open-source

very can of theÂ [indiscernible].Â Well, is they something we music to standard we users intelligence-generated it this are have And a mention or industry, is and generation model facilitate see models, to our characteristics solar content.Another have based that the introduced and users, organize artificial from also newly BIL, QX we demand. how proud actually on coordination are user can we're in as This distinguish into the also platform. we of in on is creation, we eye in that identifying year regarding the It songs model. truly In that model, Shanghai model from new we to model, call the of the revenue through the help new milestone music. introduced first working foreseeing and was I of with already good we're AI new for large with to audit auto. result good this and the auto we working result good Tencent this exploring music and the that, fit another one can an Orchestra from no AI we're also sense Besides progress can the models And is models a the a in-commerce very keeping it received seeding is National the China. from the has been harvested matter content to one scale concept ever-first that very of those new are way,

Millicent T.

And then next question from comes Mizuho. from Fang

Wei Fang

to and So coming see we far offline concerts, this pretty so back last want good I on year. the double-click year right?

and position strategy wondering management your advertising? Just are than And if what the remind your also, segment. other there models sponsored us this can help business for

Liang Zhu

questions. much that so is normalized your definitely, compared have XXXX to also it's basically, you and not a last to seeing such Thank are I year in live for will And going we Okay. think year. businesses. year's the And performance big we for growth be a will performances. when But big to trend this continue

of point TME the strategies. order to from we think our have overall strategy of pillars different I in support view,

music IP, good year year ceremony. First us, be build as of own going have a TMEA and our festivals we are from results to the is of also war we well. our for of This example, partnerships the all, committed lot see we to and very already the Xth

will through the different models we generation XXXX, We on the are well.Â Besides musicians LifeX in Lifehouse well. different to Asia a produce not Southeast which to top-tier incubate up of we continue on artist that we we lot besides have successfully as order in types IP as in festival, improve help we that performance is event.Â Besides the also the assets, state are the younger business one, also top-tier the building in well new just example, will launched local to last our focusing China Tencent continue to the for will smaller concepts the of we the year have as international and we for focusing and our musicians, to it and the artists, also organizing, of came music organize events which and own some to out stages, that. will continuing And of do helped strategy, also are bringing artists life be but us

as also And mentioned things kinds all, all of merchandise working are the sponsorship also before, we We like can fans-based have the these economy working we on. the the on and advertising have model. we First we are that ticketing. of have

continue plan our just also pervades event, will offline, different We to collaborate on with Super our with with together as online, life well. but not VIP

in to grow an we business continue to in exciting we TME. So resources are in journey looking we forward, life pull have performance will and that order the more

Millicent T.

time, we from last the interest Chong, the of In Jeffries. take Thomas Okay. question

Thomas Chong

our about IoT, such modia, areas? is outlook initiative, as about long-term second My can question about in thoughts question the comment target. our about these is our And long-form my management new

line XXXX comment how our should to the X emission about world. in talked line, bottom TME and have we X the outlook time management can on years' the we Given top down on

Min Hu

for [interpreted] Thanks question. your

from strategy to holding, online the including to to entities. perspective, music the It us from especially will savings. needs for the going loan users existing business help diversified the customer the it's to our different of Regarding complement get

going for year, in to key successfully be If in believe I us to the of second say events to improve that is QX continue phase. believe also of rolled the second robot the to Essentially, is that's it's continue the going keep out, user we're the in loan this with to and some the a content do [ reason not Santen introduce to we're aboration content performance we see top in the very close So I do point and retention portfolio. especially the we release good with very the to theÂ [indiscernible].Â And new will market. open. ]Group, the do for help

Kar Shun Pang

in of I think for an that online form. company, on pace right the in good think user overall I a are driving entire we really services good now a entire really the strategy

is libraries improve this is overall to continue we do will coverage to core continue to it example at that that, more also I be we we we will extend company, content think, important Deciding also, we for in doing And in these we have all a to not coproductions. will and that footprint, our build of one will that just content, the have our ensures one some the locally, continue resources good just of should which have. our well. the the can very example, the ecosystem, by international also most not but of our ARPPU development, side also as but to according platform the But same side, So subscribers the is to and content of going also of do to time, well. business for as we pull side

projects a exciting definitely I be to interesting and just company's our XXX-meter So I think lot point think ahead.Â I think from that definitely going a is sprint. not we of doing of view, is

We marathon. doing a are

drive investor that our sustainable time, So be ensuring on are a a will that long-term development we the And to balance. group. ensure continue we the the focusing we at the the to end day, well. good to investors And think quarter-by-quarter have of returns growth. we are to as strike to we I all of At have entire should same going

moment. just would like also So but we to our success program have we business to not a good well, our we at buyback continue doing share ensuring share and the that dividend policy right also have

Okay.

it today. I for think that's

Millicent T.

joining everyone, today. Thank us you, for

questions, free to further If This to much you thank call, feel and look next and please again, you contact IR you so our to speaking concludes any have quarter. today's team. forward

Liang Zhu

you Thank Thank you. very much. Okay.

Millicent T.

marked an Thank you. transcript spoken this the that of call.] are interpreter live Bye.[Portions were present [Interpreted] on by

Tencent Music Entertainment (TME) 13 May 242024 Q1 Earnings call transcript