Aug 13, 12:38 PM

Tencent Music Shares Plunge 18% in Hong Kong to Five-Year Low After Q2 Revenue Miss

Tencent Music Entertainment reported a significant decline in its stock value following its second-quarter earnings announcement. Despite a 25.7% year-over-year increase in net profit to CNY 1.99 billion (USD 278 million) and a 17.7% rise in online paying users to 117 million, the company's revenue fell short of expectations. Tencent Music's revenue for the quarter was $985 million, missing estimates by $11.33 million, and its non-GAAP EPADS of $0.16 missed by $0.01. The decline in revenue was attributed to a drop in karaoke platform users and reduced social entertainment revenue. The company also reported a 1.7% year-over-year revenue decline and a decrease in monthly active mobile users. As a result, Tencent Music's shares fell by over 18% in the Hong Kong stock market, reaching a five-year low, as analysts slashed target prices. The stock was down 7% pre-market.

#Tencent Music Entertainment #Tencent Music #Hong Kong

Written with ChatGPT (GPT-4o).

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