TME - Earnings call transcript Q3 2024 | Tencent Music Entertainment Group

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Millicent T.

Good evening, good morning, and welcome to Tencent Music Entertainment Group's Third Quarter 2024 Earnings Conference Call. I'm Millicent Tu, Head of IR. We announced our quarterly financial results earlier today before the U.S. market opened. The earnings release is now available on our IR website and via Newswire services.

will Mr. you call, today's hear from During Cussion Executive Chairman; and Mr. Pang, our Liang, share business strategies will CEO, updates. overview Ross who company an our of our and Then Ms. financial the Shirley before discuss CFO, Hu, our our we for call open questions. will results

in which to note Before safe in non-IFRS that applies this we harbor which make we today, the call our we discuss release, comparable refer And more as IFRS thoroughly today's earnings measures to are the recorded. with forward-looking statement most I to continue, and you please our being that statements. release measures Please explained reported earnings SEC. reconciled the advised call Instructions] filings is and under [Operator be

Cussion, I turn With will please. to over now Cussion, call of that, the TME. Executive Chairman

Kar Shun Pang

thank ability to high-quality Hello, joining third Thank for solid The and our deliver our performance today. you, once showcases quarter Millicent. you growth. again call everyone,

Our XX% a first growth. profit. drive services ARPD to adjusted in music revenue subscriber contributing and expansion net year-over-year, both base approach year-over-year increase continues grew significantly by Online XX% to

the [indiscernible] more deepening content different have that a is evident and to us our integration synergies users. on ecosystem we the between During products the [indiscernible] dual become across value engines prioritized to unlock enabling quarter, platform

you give some me Let examples.

merchandise more efforts [indiscernible] like our Chinese such home have our new international strengthen the content. a top cooperation we Corporation, early strategic popular bring First, for to continued alcom our Recently, our with ongoing content, new and digital offerings platform. including formed song sensation labels domestic labels diversifying and music with releases to as the access to partnerships enhancing and music [indiscernible] we international record artists with music bear fruit, to [indiscernible] renewed additionally, contract from global Galaxy to

upcoming value regions. proposition to Asia concerts for proprietary multiyear partner unique become G Our other us enabled the tool have Dragons, in and scale and

with working labels interactions, guessing innovative interaction increasing song growth song us events, number games spend of new challenges. As focusing voice-based are in and music industry the as influence on to and our record launch such releases

a Two other in hold been Second, ways. [indiscernible]. with concepts, in [indiscernible] artists as with success September, fans in festival events creative and and hosted [indiscernible] [indiscernible] popular space. our off-line we their demonstrated connecting In partnering well arts musicians have recent the them and music to this listed experiences as we in rising

impact. demand an This has XX,XXX Earnings tons attracted XX and wilted over impacted days. acclaim

[indiscernible], with its also organized a concert for take ever We an first attendees. XX,XXX marking off-line show over

network and Third, leveraging ecosystem. powerful Tencent's

distinct community League In and to mature continue for Legends, we with our that themesongs, content of [indiscernible] engagement, engagement. communities [indiscernible] popular music [indiscernible] platforms. quarter, in-game inspires increased of combined across the hit games, celebrities, bridging use We effectively interactive The leaked to These has impressive which [indiscernible]. Wildrift choosing item to results. our third these with popularity games, redemptions music Engen with have the collaborated top produce gaming and cross-promotions and

our premium preferences. are address to expanding that music members. users recognize cohorts needs sustained We To unique have this, consumption we actively and benefits different

renowned Super quarter. third priority in as our albums digital introduced with For [indiscernible] to members additions singers the multiple from artists VIP economic K-pop extensive of access new such

such our opportunities new [indiscernible] have as also SVIP enhanced driven fan These continue [indiscernible] show unlock unique to SVIP for and tickets labels both artists. music in will We include we enhanced memberships concepts to [indiscernible]. and to activities for by effectively and presales growth

and delighted to [indiscernible] propel as for us national honoring a journey. further motivate the cases third of Copyright the Last I'm the the of development. healthy our quarter model recognition ESG least, report share practices recognized Powerhouse recently beginning ESG achievements. comprehensive strategy, providing in that promote sustainability one of not and the we was to inaugural and to first Tencent music published contributions just industry but platform will This also Musician overview our our sustainable is our China's this

us In achieved to We sustainable far dedicated beyond so and carry summary, benefits ecosystem high-quality broader and compassionate that and labels, achieving to artists, and far. what music our music growth we have will remain long-term inclusive fostering the approach a and users filing industry.

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

Liang Zhu

years Cussion. our and a dynamic of position Hello, our a user driver key in position been you, operational Thank have Alongside and content in environment. expertise industry differentiating for everyone. insights strengthening value our

our and upgrade demonstrated increasing results much that builder in our premium new commitment third members services. to strategies return on again our brought users, ability Our to attract results and down users more moving meet ability to to to execute performance. subscribers consumption quarter innovation paying This

start me upgrades been our use have which quarter, by some well large Let the third by progress case. on sharing product in our received

to bringing innovate product further experiences. First, features, users' our us enables in our fresh understanding deep needs

the launched first community air [indiscernible] promoting example, common real-time sense as [indiscernible] For well interface screen deeper of as feature, interactive belonging. industry a

trending upgraded of task [indiscernible] attracting millions the [indiscernible] the also top We increased features, influence.

explore Second, technologies to we users' enhance experiences. continue new to

third we both example, in technology [indiscernible], language quarter, create further which viral we on models to production, large have went streaming content platforms. improving efficiency video and leveraged Notably, in to deployed short quality. For line quickly the AI

books help also audio thousands of technology us TTS create X-speed tens our platform. on of tax Our

to subscriber efforts Turning our base. our to expand

we optimized virus subscriber efforts drive and operational acquisition environment. new First, our to across marketing

same with other mid-autumn This paying users rewarding interactive uniform festival when For features. has example, central [indiscernible]. to new benefits positively contributed subscription event user

quarter, novelty user it example, for This led making discover to share meal. is recommendation suggestions, third users our either paying streaming to Second, efficiency. have recommendation sequentially which in of the we continue to enhancing the One turn improve improve content tailored in algorithm. commission

Disney additional with interfaces personalized attractive users. allowing Third, [indiscernible] are we collaborated IPs to us Chronic and that like paying offer

quarter, The compared benefits to of the reached our important SVIP, traction we as SVIP surpassing million. ARPU gaining of pleased In shown by platform long our are are and milestone of engaged an other the time spent plans third terms tales we highly at of that the higher unique by report users. on end paying our subscribers, to XX

more details on provide me this achievement. Let

First, brings for design and self-developed our quality SVIP experience we we Viper from [indiscernible] membership in-car more quarter and phone to examples voices. quality serious clear the which our Furthermore, our high-quality this new enhanced [indiscernible], have members. [indiscernible] our features quality the immersive audio [indiscernible] SVIP on proprietary users. experience scenarios for with are expanded to audio leasing audio

popular their virus [indiscernible] genres long-form book content enhanced and comics, positive a suspense We across ], expanded our impact to and user had offerings content IPs audio films, audio [ Second, including revenues also with original review and subscriptions. our have on [indiscernible]. library

grow are our delivering memberships. the examples content depth a just benefits. these Coupled taking foundation our are a richer of Third, of we solid the content that growing have as for steps SVIP few ecosystem, Cussion we initial with discussed, to

forward, Moving delivering will continue experiences. unit platform on need content music meeting we our offerings, both users to and and product informing the focus of the

I the deep that, to call would turn financials. like our a With over to Shirley, our down CFO, into for

Min Hu

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

mill profit and drive of and a basis. monetization RMB RMB effect to strong music our by of our third subscription by to net business, increased year-over-year IFRS XX% service XXXX. operational advertising performance are X.X Our net quarter in see results year-over-year we financial continued and profit the growth to XX% management efficiency pleased strong in With billion. revenue trajectory growth non-IFRS year-over-year to billion, X.X on rose resume its to online

of [indiscernible] XX.X the by a increase year-over-year. year-over-year by Online X% the operating mainly XXXX million of RMB was XX.X quarterly the quarter reached were billion, were Total XXX RMB [indiscernible] year-over-year RMB of revenues by of increased increase up X third [indiscernible] users subscription subscribers to X [indiscernible]. third net X.X with supplemented in billion. of up of in revenues from in This adds sequentially online XX% growth in offline number driven year-over-year users ARPU the X.X revenues expansion RMB XXXX by paying quarter the our growth million same last drive billion, as subscription [indiscernible] X% XX% a music RMB as strong revenues well advertising The performances. representing achieving from and revenues X% in with period growth XX% revenues in year. was both goal RMB increase

instant and to and futures and quarter. attracted true concerts tickets our supported strategically have membership advertising such improve benefits, SVIP audio milestone rate product on and more for innovate and and a digital important revenues XX an million primarily Advertising growth have and for us and ad-supported in formats revenues, to focused SVIP in benefits this due a and advertising as helped mobile and this program growth user membership an high-quality rate of users. effects our made year-over-year priority We These AB for futures the and the also resell were members benefits and offerings engagement activities attractive we enhanced trans access advertisers continued airbands, passing the to acting to some quarter. had diversify helped strong in car

down and services were XX% entertainment RMB Social year-over-year. other revenues by billion, X.X

For priority competitive conditions will and keep marketing [indiscernible] lenders. top social operation, the monitoring and is [indiscernible] services, our in we and

products using innovate We in and as membership advertising drive wasting areas build quality such to new futures containment. and continue to social growth and

few for margin X.X to percentage points an increase factors. year-over-year XX.X%, of gross a representing QX Our due reached

in enhanced most ARPPU have user online First, positively our and revenues the expansion growth margin. gross pay of advertising the for our the base, music impacted

Second, royalty we a been have manage metric our to focused costs. content as ROC key on

continued margin. up our Third, of the ramping own gross our improve to content

social Lastly, advertising the gross growth and within memberships margin. also impact racing in positively entailment our

the amounted of same to total XX.X% revenues quarter with billion, [ third last our In period operating on ] RMB they the of representing in XX.X% of X.X Going compared year. expenses. XXXX, to

RMB same were last and period expenses of marketing the remained and million with stable Savings comparing year. XXX relatively

approach MAUs. in with growth have the for online together [indiscernible] promotion Our milk contributed focused productive improvement to expenses,

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

was XX.X% the the [indiscernible] for tax PIC by of This accrual Our to our compared to RMB effective period recording tax attributed XX.X% in be to to QX remitted same XXXX. earnings related of entities. rate was to increase offshore primarily subsidiaries

the [indiscernible] profit X.X end of and company have the RMB net and profit were QX exchange exchange For foreign rate The loss XX, respectively. profit equity September XXXX. net company to USD profit net offers net the results of billion, holders the as equity on and to respectively of fluctuation X.X RMB unrealized to reflected holders and Jones from billion, RMB attributable due and X.X QX RMB of an billion attributable financial for XXXX, billion XXXX our RMB were X.X between

results These this XX% was year-over-year. X.XX, and performance per increased announced ADS in RMB benefit efficient underscore quarter repurchase for robust ADS owners financial RMB our the our up operating share earnings diluted X.XX, XXXX. Under program. March the share up Our enhanced Non-diluted year-over-year. from to program XX% repurchase

the were XXXX, market repurchased quarter third total of XXX million XX, repurchased million of September USD open X.X we of As ADS the cash of have for consideration XXXX. which USD approximately from XXX in a million

As should June of XX, balance XXXX. cash USD state. of balance as RMB for with September XX, by and XXXX, exchange short-term our affected billion deposits compared equivalents, This term XX combined billion the rate also cash, of RMB event XX in was balance combined equivalent changes RMB to of as

our Looking business forward, as expanding as memberships growth in high-quality drive well to continue SVIP advertising as such the as we events operational and will improvement. [indiscernible]

returns as invest in shareholders. and are engagement healthy well This improve in and our to business high-quality user content remarks. remain industry prepared continue music also as dedicated experience. confident production We innovating for enhance further to user growth technologies long-term the in will and our high-quality to our concludes provide We

now ready We are your questions. to take

Millicent T.

The line comes from you, Stanley. [Operator Thank the Instructions] first [indiscernible] Shirley. Morgan from question

Unknown Analyst

like first I'd to ask [Interpreted] question. the

for this the believe year contribute next especially next of to of regarding QX performance and the from year CBIP would year [indiscernible] QX your especially outlook be this First growth. competition. going macroeconomic year? the based on was full at year question of the is is We pretty for what the outlook presentation and well, progress in our and QX condition

Kar Shun Pang

strategy Okay. profits the And Thanks and growth think well revenue this high-quality and questions. the is of net the subscribers by which ARPPU. for of of shown once PME again balance quarter's your between I testifies as as our performance growth also the effectiveness our

base. So our think key expand continue priority user our to is for the midterm I paying targets, to

ever mentioned. same of the ARPPU grow at the which than So strong time, to you have initial and commitment proven our more VIP our pant by the Super that results is

as September XX XXXX. of We have already . subscribers the million end over of recorded

think our I and Diamond business, our lot a membership recall, to downloads our us may strategy also has membership of to you evolution and basic from upgrading As experience. transitioning given Green pay the streaming is also accumulated basically insights

now pushing add it privileges loyalty broaden product will base more also music our VIP believe that and our and boundaries to well. which user we are diverse We scenarios and user explore new deepen help content, as our more membership, the strongly to us to Super user high-quality features

be us going healthy helping future. to it's have very So a to

into not Last in point out I positive revenue are that would about track are now we prospects. XXXX. think least, I XXXX, growth optimistic back to like to And a that on but looking we growth our resume

improved driven the and in and the top Assuming expect steady the an we profits by number growth subscribers ARPPU both the in external see to environment stays along in margins. acceleration also and stable, increase with the mainly top line of

Millicent T.

question the Lincoln then line from comes from And Kong this from Sachs. Okay. Goldman

Lincoln Kong

solid on pretty Congrats the quarter.

will on member question the side. be my So

I subscriber, share reason X new behind we fourth than -- earlier just terms any we actually third as bit quarter? should we [indiscernible]? better of fourth color And could more versus compared So your bit the about companies a have How terms in target. third add user part And think quarter great. passed we new retention in expected especially the the in promotion the the it? on be quarter of ] a we single-state million would think a into [ thinking have we quarter, Could has, color will earlier more management subscriber the intensity? of that's sort of

Unknown Executive

question. [Interpreted] your Thank than indeed, better in Yes, you performance is much. Thanks QX, for very the expectation.

I it's stable we year of a because still to operational starting very from mainly now. think strategies, our would this like strategy to keep

very And the stabilize And privilege attention pay festivals, leveraging also same to subscribers. at time, the rents sure mid-autumn the the At the marketing for the of a same ever-expanding in continue QX, our also especially to way. monthly are base same festival. the healthy We're make the also, at strategies time, subscriber much and some campaign time, to there grow are we in [indiscernible]. the we we

And value of to really we and the year the our still users think especially within next know to steady and and will very that for the and going the QX the want value growth of In in we're platform. us. stay regarding So strategies. user over way, the And them. subscribers more healthy marketing of marketing our subscription business, content be a QX us work users importantly, true because or year, of really the tight business this the keep our with we seek active of we provided the to on I control still to retain

third we content the and In quality and terms content, also did were privilege to the job to of in the user lot content, we effect. improve order or subscriber the also in the a addition trying improve further to the And transitional of besides quality. [indiscernible]

the XD to continued time, adopted cooperation DTS provide the with to in our also we good at we example, ] and more [ audio users. same privilege our order For

at piloted that end. attempts sub feel the also time, functionalities also some And we We we service been the the make user. do same and the and has in vocal and provide service when some them listening provide better letting mobile the privilege to the the hope to importantly, more subscribers. car to improve happy, also are to especially recently, the to that good we will provided there But and privilege

can SVIP continue take operational our to platform. improve our way, regarding to transitional as of would of still In we measures combo that monetization speaking, a subscribers, the overly we therapy. efficiency the plus strategy the So standard like

order user new -- subscriber engagement users, to same base, for drive the the at we further also time, up importantly the we to that hope the subscriber Regarding to because growth improve very the still going is trying we SCIP, a basic we primary a low for continue upon one relatively SVIP to and the attention we are user do generally in our the are and like is the emphasize more the at SVIP to size speaking, based size while stage. to to along with of subscriber would can from and [indiscernible] still the promote steady [indiscernible] of continue

can So healthy near go for also we future through contribute we hope in single and to the That would the improvement. reps future. ARB

Millicent T.

question next the And Citi. Yap from Alicia from comes

Alicis a Yap

[indiscernible] question follow-up on have I a

Millicent T.

Alicia, we can't hear you.

Okay.

technical Sorry issue. about the

later. to Can to go we Roger back Alicia, [indiscernible] go think, you from we Barclays. I

Unknown Analyst

So SGIP I have also a on program. follow-up

third are of over as So million now we quarter. $XX

during of of from So was converted the a many that out quarter. of many that added users? regular of new how just from VIP was trying how Or . was the program? get to how many sense that, like And

Unknown Executive

are majority or for but our from in majority new VIP an we're the statistics, your to from the Thanks customer basic responding of question. be eye still SVIP upgraded way, SVIP, that upgraded to question, the or are transitional [Interpreted] engagement. account. According But the of on be users promoted the SVIP a also basic existing keeping as still

the Interestingly and are fitting are speaking, to their Please can to our the many according quite them privilege we users that and young need. profile also tell interest service of the to user we noticed SVIP, of provided users.

on many young of the are the same But know at the user also an we time, the EV indeed users we EV because of users. keep eye the that

to of from also just with incentives same and the And can sure make our we time cross-device the provide VIP privilege guide were So we us. economy. do SVIP. recently, order to Starlight best we we with were rewards whether SVIP discussing card further wondering fence want to At extend in the the combining

[indiscernible] still will years, true with ever-increasing fed improvement, next the which few outlook. contribute to also in So our SVIP belief have that the for reason sites

Millicent T.

next from And Zhang the America. Bank from question of Lei

Lei Zhang

SBI I million continue is performing being ARAB between than follow-up not this [Interpreted] and have reflected XX a we first do But what all, to of especially also it a is that that within well, which seems SVIP see grow better single regarding that question we size expected. quarter, in month.

You very us are to user the to going team, the and growth in through when going with response might the the to And [indiscernible]? from size see [indiscernible]. going you're along a the work management expect how reason you gross it's to good finance how future near currently the

Unknown Executive

I XX one night. coming SVIP to size deep that scratch. close were just We have there We to million our year. say is everything over X [Interpreted] not from to dive for start

So indeed the a of is it staff of result profits.

your perspective, to Nowadays, we that see in performed going size have already now sites ways, in also model response RAB. and SAP majority the least contribute when to XX model then of it's going means XX more In the [indiscernible] still from reached just I continues increase accumulated But But XX to it's penetration regarding be previous the you're with SVIP reached a we more mentioned being in be subscribers. reps. our respond other SVIP SVIP questions in that improve, to continuous average the million and And my the in believe from question, To traditional million, to customers the at response line going existing SVIP approach. RP. to user. when to are to already

on continue the need basis. you but I now, [indiscernible] and assess how can't independent the take say what an to is here quarterly it think factor as we But

one comment have I within especially more basic our higher ] RAB accounts. subscriber say [ XX our than is million and Just SVIP, to

Millicent T.

Mizuho next the question from And [indiscernible].

Unknown Analyst

app drivers, saying key long-form XQ the also right? What by offering. profile? tend some more on Google Can for million color on the kind premium audio young of the highlighted click versus million mentioned You example, there we're $XX [indiscernible], on help one be apps, congrats like the you super XX to about the like Just double you users, right? And right, VIP the of a quality, audio any share milestone. the

this continue if going focus there conversion? effectiveness a in then plan curious And the them quarter? to to Just do you to drive area forward rank is on by which way to

Unknown Executive

the our user of from from [Interpreted] question. still music that strategy. around least At million Responding line with Google, to from our in coming the high-value XX operation SVIP. operations, [indiscernible] and half it first QX part is

quality SVIP I the experience. As do including enjoyment and user, and user of as presentation, actually, devices mentioned first privilege we for my digital well the and the the full as to experience based provide on the high-quality in audio long-form album and the sales sound cross

we Well, in do the considering time, Google regarding at the at additional back time, same also are [indiscernible] some provide local provide where material app. privilege, as we But I physical same have at we mentioned, providing the the also already privilege.

you SVIP the we're family results for your membership we planning funding successful provide proved because example, for like package example, be package sums website. SVIP For some per can of membership on if fab, package and the to the the surely family the calendars Video also

So these referring also good SVIP we considering business. are practices to our

Millicent T.

question next from Xiong from comes UBS. And Wei

Wei Xiong

[Interpreted] social and question regarding entertainment I a business. have

expected. order entertainment still Is and possible revenue in than social down. better also elaborate how revenue The social onto the the what raises? and actually growth measures specific and total this the For on to you be going take team next the of would contribution to revenue? year entertainment for be management there in the what its it the we're narrowed business any and to of Is how Especially the being year, the QX business, rate decrease improve business? is continue QX take to might to

Unknown Executive

question. your for Thanks [Interpreted]

are business, there platforms. entertainment X social Regarding

better on what good VIP we are stream expected. I from than advertisement business identified and think other also its live subscription we and the [indiscernible] are especially a that provide all performing for and [indiscernible] been business, has besides growth business down coming business investments, example,

speaking, better-than-expected year. of last the generally business leasing revenue compared continued contribute entertainment social to performance the to with So

expected. us more And like Google, so and design I the the live believe we Google. and play card a live implant was contribution what a total further help revenue good very the mechanism than And Google which is It's that It is innovative that, especially We streaming. we one did reason. is that's is collection reason this second we on a than play growth can and better believe expected. live the the better on what The revenue over also games. streaming the also on into comments to intercede

the also a As performance and the streaming and entertainment very one registered in in be we service I for have functionalities near to But drops. desk stable stable order that make continue a live solidify in from going our the sure social future, to to to more started platform another. way, believe middle could business is still very

Millicent T.

And [indiscernible] next from comes question the

Unknown Analyst

Our past XXX in quarters, MAU have X seems it in million and to stabilized around the added X XQ. million actually

So expect into think shall latest actually to Weixin we share Shall future from in any to some integration growth management and about MAU strategy? us how the at ecosystem? priority return we opportunities could point your MAU deeper with

Unknown Executive

continue improve And launching the to different and for our I the And up content celebrities self-commissioned with Thanks rests drive those unique us context strategy strategy audit displayed question. That continue same the the today, the But that the especially way, Most have time, importantly, I growth. to continue mentioned the [Interpreted] especially MAU regarding is we MAU. high-quality the of working on at. at content, self-made also and think to album. key with still content terminals. and up hits. our the we And in growth, to for content drive the are

growth can to the and we innovative on Music terminal enacted same the the for platform, provide be product the ROC more on to to and help year, out marketing experience the grow and feasible. it QQ find and X the and of actions But play pretty especially, we I over us at past the this perspective with the MAU and functionality the continue to was And users mentioning helpful. continue retain further MAU. that from the promotion been proved users, on So optimize that the ready time,

order like we copy rate the can that also the at the the Google But IoT Car to So that's especially that's would [ hope the also for also in to near that concept a growing business MAU same the going I future, keep in-car the reason driver ] to say were drive further the contribute and Hoka the and way was growth that besides going think store MAU. DAAU to help Google we to And has be in it a successful I time, great great in and there. still up light version opportunity new and in to app, and to to we apps

with good the we're eye, gain question regarding And to a growth. is the do second help We on listen part going an to believe WeChat. But great [indiscernible] keep also WeChat better how to speaking, going are to of platform very a growth. strategically we WeChat

self-commissioned content to the okay business be solid for lay think and in foundation the I hope future, looks size near future. its in our near and continue it could also an a platform active

Millicent T.

the from Jefferies. Chong from question In the interest did of you. Thank we last Thomas time,

Thomas Chong

is operating Any a question trend. about as well margin expenses as

already we that margin. GP our exceed Given terms in of

long-term OpEx S&M about key further how profit leverage regarding our expenses can some think are the And our going What Just side. color trend. more that get cost trend side, we the on our wanted our and get forward. margin to going we areas XXXX in forward and should [indiscernible] and earnings

Unknown Executive

[Interpreted] very Thank you much.

registered Let I'm QX, the our the about XX.X%. GP growth We about drivers. margin continued stood GP for margin first. few a me at talking talk In quarters.

the and our in of business [indiscernible] from advertisement the user also The growth first margin. the ever driver is positively base, the user [indiscernible] music also contribute business GP and will rapid from revenue the increase the to

managing adopt cost. the we reason second in ROC The because is

is music content actually the growth the copyrighted raised that's cost on cost revenue and So than growth. the especially content our lower

that content to The margin. contribute have more and the going contribution we content, third GP the because co-creating from that's driver is also the to positively self-commission

revenue some grants you strategies and lot business, margin improvement. percentage live growth VIP advertisement social better we the same social the also reduce to the and contributed the At and took we can Regarding a also to the our continue revenue share. streaming time, see of product

I the our than talking the So year about look Besides and that good going what But growth expenses very expenses. we factors saw important might still believe would a role. some rate in in lower play lower much XXXX, XXXX. grow And of growth foresee G&A in and be mentioned rate regarding XXXX, slightly, QX XXXX. to S&M to about rate. going think operating We're is this margin, We the I improvement, but into than do its expense growth GP the revenue

adjusted I [indiscernible] do growth profit in net have momentum. So does believe rate profit that a adjusted and XXXX, net good the

also about do at effective effective perspective, tax going from believe asked You the operational unchanged. rate And rate. tax least remain to is the we

year and many to because commercial we of from the this has companies been the the offshore. that For have sent dividend

reason measures we tax, that's that which into rate confirmed. dividend been generated the higher. when are place. also next tax has makes have dividend, size not year, programs, and in effective similar So we Or have may looks our is regarding the of withholding the going to still a total But

Millicent T.

joining Thank everyone, you, you. for us today. Thank Okay.

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

Unknown Executive

much. Thank you very

Tencent Music Entertainment (TME) 12 Nov 242024 Q3 Earnings call transcript