China's Tencent Music revenue misses estimates, share fall 4%

[BEIJING] China's Tencent Music Entertainment Group on Monday missed quarterly revenue estimates as it reported the slowest increase in a widely-watched metric for growth since its debut, sending the shares of media streaming company down 4 per cent.

Monthly average revenue per user from its social entertainment services rose 16.5 per cent to to 130.2 yuan (S$25.59), the slowest growth since it went public in December last year.

Although Tencent's music streaming services have more users, its biggest revenue drivers are its social entertainment services - Karaoke platform "WeSing" and "Kugou Live" and "Kuwo Live" - where users can live stream concerts and shows.

Overall revenue rose to 5.90 billion yuan (S$1.16 billion) from 4.50 billion yuan a year earlier, but missed estimates of 5.95 billion yuan, according to IBES data from Refinitiv.

The company, controlled by Chinese tech giant Tencent Holdings, reported net income of 928 million yuan for the quarter ended June 30 compared with 903 million yuan a year earlier.

Excluding items, it earned 0.67 yuan per American depositary share, above the average analyst estimate of 0.61 yuan.

Shares of the company, which have risen 9.2 per cent so far this year, fell to US$13.80 in extended trading.

REUTERS