Tencent Music Entertainment has announced financial results for Q2 and revealed plans to partner with manufacturers of cars, smart speakers and watches.
Total revenues for the three months to June 30 were RMB 5.90 billion (£693m), an increase of 31% year-on-year. Operating profit was was RMB 1.09bn (£128m), an increase of 7% year-on-year.
Online music paying users reached a record 31m, an increase of 33.0% year-on-year, with 2.6 million extra users – the largest net addition since the first quarter of 2018.
"We are pleased with second quarter results driven by the strength of both our online music and social entertainment businesses," said Cussion Pang, CEO of Tencent Music. "The growth in our online music paying users accelerated during the quarter, with 2.6 million paying users added sequentially. We continued to expand our music content leadership by partnering with more music labels, as well as adding more content including music-centric variety shows, short-form videos and long-form audio such as audio books and podcasts.
“We strengthened our alliances to produce and distribute more high-quality original soundtracks, including our partnerships within the Tencent ecosystem to develop original music content for games, films and TV shows.”
Tony Yip, chief strategy officer of Tencent Music, said: "For online music services, we pride ourselves in expanding our promotional capabilities to help an increasing number of both prominent and up-and-coming artists distribute digital albums, which are instrumental in helping artists gain popularity and build strong bonds with their fans. In order to provide users a consistent and cohesive listening experience, we are forging Internet of Things partnerships with leading manufacturers of cars, smart speakers and smart watches, which will provide further channels for user acquisition. As part of our internationalisation strategy, we are also looking to expand our social entertainment services outside of China, as we take initial steps to explore overseas opportunities for WeSing in South East Asia. These small steps we are pursuing will enable us to better serve users and expand our reach at both home and abroad."