SHENZHEN, China, Nov. 11, 2019 /PRNewswire/ -- Tencent Music Entertainment Group ("Tencent Music," "TME," or the "Company") (NYSE:
TME), the leading online music entertainment platform in
China, today announced its
unaudited financial results for the third quarter ended
September 30, 2019.
Financial and Operational Highlights
In the three months ended September
30, 2019:
- Online music paying users reached 35.4 million,
indicating an increase of 42.2% year-over-year. On a sequential
basis, the number of online music paying users grew by 4.4 million,
up from 2.6 million in the second quarter and 1.4 million in the
first quarter of 2019, representing the largest net increase since
2016 and continuing the accelerating growth trend.
- Total revenues were RMB6.51
billion (US$910 million), with
an increase of 31.0% year-over-year.
- Operating profit was RMB1.19
billion (US$166 million), with
an increase of 11.9% year-over-year.
- Net profit attributable to equity holders of the Company
was RMB1.03 billion (US$144 million), with an increase of 6.4%
year-over-year.
- Non-IFRS net profit attributable to equity holders of the
Company (excluding amortization of intangible assets and other
assets arising from business combinations, share-based compensation
expenses, net gains or losses from investments, fair value change
on puttable shares and income tax effects) increased by 8.0%
year-over-year to RMB1.24 billion
(US$173 million).
"We continued our solid performance in the third quarter, driven
by healthy growth from both online music and social entertainment
services. We are particularly pleased to report accelerating growth
of our online music paying users, representing a 42.2%
year-over-year increase, as the net increase in the third quarter
reached 4.4 million, achieving another quarterly high and outpacing
the record growth in the second quarter. More importantly, the high
quality of this growth was demonstrated by the ARPPU expansion of
3.5% quarter-over-quarter. This is a strong endorsement
of our continuous efforts to unlock the intrinsic value of music
through our integrated music platform, and to cultivate the
willingness of users to pay for premium music services," said Mr.
Cussion Pang, Chief Executive Officer of Tencent Music. "Thanks to our vast user base,
deep understanding of music trends and user insights, we continued
to develop our platform as the go-to destination for artists to
build a fan-based economy. This strength, coupled with further
investment in various forms of content, technology and services,
will solidify our platform as an all-in-one music entertainment
destination."
Mr. Tony Yip, Chief Strategy
Officer of Tencent Music, said, "In
the third quarter, we continued to invest in product
innovations to further expand our user base and increase user
engagement. We pioneered the introduction of short videos
to music streaming pages for users to enjoy while listening to
music. We also added new social and gamification features
within our social entertainment applications to facilitate
connections among users. In addition, we continued to
enrich our content ecosystem to extend further beyond songs to
include a wider range of offering, including long-form audio, PGC
and UGC short videos, music-centric variety shows and original
music for games, films and TV shows as well as from our
musician program. From talent discovery, content distribution and
promotion, to fan-based economy, our platform continues
to benefit from the unique virtuous cycle of synergies between
online music and social entertainment."
"We delivered strong financial performance in the third quarter
with a top-line growth of 31.0%, along with solid operating margins
and cash flow," commented Ms. Shirley
Hu, Chief Financial Officer of Tencent Music. "Our online music subscription
revenue increased significantly by 48.3% year-over-year, driven by
strong growth of paying users and ARPPU expansion. New album
releases boosted our revenue from digital albums to double in this
quarter compared to the third quarter of last year. Our social
entertainment and others revenues grew at a healthy rate of 32.9%
as we continued to expand the paying user base of our social
entertainment services. Our investments in premium content have not
only resulted in sound financial return, but also solidified the
leadership of our platform. Looking forward, we will strengthen the
synergies between our online music and social entertainment
businesses and continue to invest in long-term growth
initiatives."
Operational Highlights
- TME's key operating metrics* continue to grow across both
online music and social entertainment services.
|
3Q19
|
3Q18
|
YoY %
|
Mobile MAU - online
music (million)
|
661
|
655
|
0.9%
|
Mobile MAU - social
entertainment (million)
|
242
|
225
|
7.6%
|
Paying users - online
music (million)
|
35.4
|
24.9
|
42.2%
|
Paying users - social
entertainment (million)
|
12.2
|
9.9
|
23.2%
|
Monthly ARPPU -
online music (RMB)
|
8.9
|
8.5
|
4.7%
|
Monthly ARPPU -
social entertainment (RMB)
|
127.3
|
118.5
|
7.4%
|
- In the third quarter of 2019, the Company further strengthened
its industry-leading content offering through the following
initiatives: (i) adding strategic partnerships with more music
labels in both mainstream and long tail genres and (ii) adding a
wider range of content including music-centric variety shows,
premium original music for games, films and TV shows, short-form
videos, as well as long-form audio such as podcasts and audio
books.
- The Company further penetrated a younger demographic of music
users by: (i) expanding partnerships to reach hundreds of
universities and higher education institutions in China, (ii) adapting to the preferences of
younger music users by adding genres such as Urban, EDM, Animation,
Comic and Gaming, as well as Chinese ancient style, which has enjoyed a rising trend of
popularity among young people as it combines China's traditional culture with popular
trends and provides the young demographic a strong sense of
cultural identity, and (iii) launching special promotion events for
the monthly subscription plan as well as live streaming new song
releasing events for students.
- The Company further solidified its promotional capabilities and
became the preferred destination for artists to build a long-term,
stable and reciprocal fan-based economy. Through interactive
activities, the Company helps established, up-and-coming, domestic
and international artists to promote music to a broader audience in
an engaging manner and through both online and offline channels:
(i) TME not only aided Jay Chou's
new single, Won't Cry, to achieve record sales result, but
also facilitated the viral spread of social buzz, and inspired more
than 12 million karaoke recordings by the Company's WeSing users
within 10 days after its release,
further extending the single's popularity; (ii) created an interactive environment for Taylor Swift and her fans in China to engage and to express views on its
music platform. The title song of her new digital album
Lover sold nearly 6 million copies within 24 hours on
its platform after release, and (iii) for TFBOYS' 6-year
anniversary concert, TME live streamed the event to promote greater
participation online and offline amongst fans across the country
and provided an opportunity for fans to show appreciation to their
idols through virtual gifts.
- TME's musician program has become a leading online music
platform for original music in China, offering a full suite of services to
nurture and promote up-and-coming independent artists. Its open
platform not only significantly simplifies the process for artists
to upload and manage their soundtracks, but also provides them with
user data analysis and actionable intelligence on music trends. The
total number of uploaded songs by up-and-coming musicians for the
first nine months of this year more than doubled year-over-year.
The average number of daily streams of original songs on TME's
integrated music platform including QQ Music, Kugou Music and Kuwo
Music was up almost 200% compared with the same period a year
ago.
- The Company continued to offer comprehensive online and offline
resources to uphold copyright protection and continues its journey
of educating users by unlocking the intrinsic value of music to
hundreds of millions of music lovers in China.
- The Company continued to improve the efficiency in content
curation and accuracy of personalized recommendation by utilizing
deep learning and data mining, which has resulted in a substantial
increase in average daily streams and user engagements for both its
online music and social entertainment services.
- The Company continued to make concerted efforts in product
enhancement and innovation to cater to user demands, which has led
to improved user engagement. These efforts include: (i) adding a
wide range of professionally generated and user generated short
videos to music streaming platform; (ii) bolstering social and
young attributes on the WeSing platform by adding new forms of
content such as mini live-streaming reality shows and new features
such as universal duet that encourage users to interact, and (iii)
developing a song recognition tool which enables users to recognize
within seconds songs embedded in short videos.
[*] For the
definitions of the above operating metrics, please refer to the
introduction section in the Company's 20-F filed on April 19,
2019.
|
THIRD Quarter 2019 Financial Results
Revenues
Total revenues for the third quarter of 2019 increased by
RMB1.54 billion, or 31.0%, to
RMB6.51 billion (US$910 million) from RMB4.97 billion in the same period of 2018.
- Revenues from online music services for the third quarter of
2019 increased by 26.2% to RMB1.85
billion (US$258 million) from
RMB1.46 billion in the same period of
2018. The increase was driven by strong growth in revenues from
music subscriptions and sales of digital music albums, offset by a
decrease in sublicensing revenues from other music platforms.
Revenues from music subscriptions were RMB942 million (US$132
million), a 48.3% increase from RMB635 million in the third quarter of 2018,
primarily due to improved paying user retention rate and increased
number of paying users.
- Revenues from social entertainment services and others for the
third quarter of 2019 increased by 32.9% to RMB4.66 billion (US$652
million) from RMB3.51 billion
in the same period of 2018, primarily driven by revenue growth in
both online karaoke and music-centric live streaming services. The
Company expanded the paying user base of its social entertainment
services by 23.2% and increased ARPPU by 7.4% in the third quarter
of 2019, compared with the same period of 2018.
Cost of Revenues
Cost of revenues for the third quarter of 2019 increased by
42.9% to RMB4.30 billion
(US$601 million) from RMB3.01 billion in the same period of 2018,
primarily due to the increase in content expenses and revenue
sharing fees. The increase in content expenses was mainly
attributable to the increase in market prices and amount of
licensed and original music content. The increase in revenue
sharing fees reflected the growth in the Company's social
entertainment services.
Gross Profit
Gross profit for the third quarter of 2019 increased by 12.6% to
RMB2.21 billion (US$309 million) from RMB1.96 billion in the same period of 2018. Gross
margin was 34.0% for the third quarter of 2019.
Operating Expenses for the Period
Total operating expenses for the third quarter of 2019 increased
by RMB260 million, or 26.6%, to
RMB1.24 billion (US$173 million) from RMB977 million in the same period of 2018.
Operating expenses as a percentage of total revenues was 19.0% in
the third quarter compared with 19.7% in the same period of
2018.
- Selling and marketing expenses for the third quarter of 2019
were RMB517 million (US$72 million), representing an increase of 19.1%
year-over-year from RMB434 million in
the same period of 2018. The increase was primarily due to
increased spending on branding and paying user conversion.
- General and administrative expenses for the third quarter of
2019 were RMB720 million
(US$101 million), representing an
increase of 32.6% year-over-year from RMB543
million in the same period of 2018. The Company continued to
increase its investment in research and development to expand its
competitive advantages in product and technology innovations.
Operating Profit for the Period
Operating profit increased by 11.9% to RMB1.19 billion (US$166
million) in the third quarter of 2019 from RMB1.06 billion in the same period of 2018.
Net Profit and Non-IFRS Net Profit for the Period
Net profit attributable to equity holders of the Company for the
third quarter of 2019 was RMB1.03
billion (US$144 million),
compared with RMB964 million in the
same period of 2018. Non-IFRS net profit attributable to equity
holders of the Company was RMB1.24
billion (US$173 million) for
the third quarter of 2019, compared with RMB1.15 billion in the same period of 2018.
Please refer to the section titled "Non-IFRS Financial Measure" for
details.
Earnings per ADS
Basic and diluted earnings per American Depositary Shares
("ADS") were RMB0.63 (US$0.09) and RMB0.62 (US$0.09),
respectively, for the third quarter of 2019. Excluding amortization
of intangible assets and other assets arising from business
combinations, share-based compensation expenses, net losses from
investments, fair value change on puttable shares and income tax
effects, non-IFRS basic and diluted earnings per ADS were
RMB0.76 (US$0.11) and RMB0.74 (US$0.10),
respectively, for the third quarter of 2019. During the third
quarter of 2019, the Company had weighted averages of 1.63 billion
basic and 1.67 billion diluted ADSs outstanding, respectively. Each
ADS represents two of the Company's Class A ordinary shares.
Cash Flow
Net cash provided by operating activities for the third quarter
of 2019 was RMB1.35 billion
(US$189 million), compared with
RMB1.64 billion of cash provided by
operating activities during the same period of 2018. Net cash used
in investing activities for the third quarter of 2019 was
RMB680 million (US$95 million), primarily due to investments in
term deposits and short-term investments during the quarter,
compared with net cash provided by investing activities of
RMB333 million during the same period
of 2018.
Cash, Cash Equivalents and Term Deposits
As of September 30, 2019, the
combined balance of the Company's cash, cash equivalents and term
deposits amounted to RMB21.14 billion
(US$2.96 billion), compared with
RMB19.90 billion as of June 30, 2019. The increase in cash, cash
equivalents and term deposits was primarily due to cash flow
generated from operations of RMB1.35
billion (US$189 million). The
Company's cash and cash equivalents balance was also affected by
the change in the exchange rate of RMB to USD at different balance
sheet dates. The exchange rate was 7.1477 to 1 on September 30, 2019, and 6.8650 to 1 on
June 30, 2019.
Conference Call Information
Tencent Music's management will hold a conference call
on Monday, November 11, 2019, at 8:00 P.M. Eastern
Time or 9:00 A.M. Beijing Time on Tuesday,
November 12, 2019, to discuss the financial results. Listeners may
access the call by dialing the following numbers:
United States Toll
Free:
|
+1-888-317-6003
|
International:
|
+1-412-317-6061
|
Mainland China Toll
Free:
|
400-120-6115
|
Hong Kong, China Toll
Free:
|
800-963-976
|
Access
Code:
|
3368975
|
The replay will be accessible through November 18, 2019, by
dialing the following numbers:
United States Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Access
Code:
|
10135231
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
https://ir.tencentmusic.com/.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB7.1477 to US$1.00, the noon buying rate in effect on
September 30, 2019, in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred could be
converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
Non-IFRS Financial Measure
The Company uses non-IFRS net profit for the year/period, which
is a non-IFRS financial measure, in evaluating its operating
results and for financial and operational decision-making purposes.
Tencent Music believes that non-IFRS
net profit helps identify underlying trends in the Company's
business that could otherwise be distorted by the effect of certain
expenses that the Company includes in its profit for the
year/period. Tencent Music believes
that non-IFRS net profit for the year/period provides useful
information about its results of operations, enhances the overall
understanding of its past performance and future prospects and
allows for greater visibility with respect to key metrics used by
its management in its financial and operational
decision-making.
Non-IFRS net profit for the year/period should not be considered
in isolation or construed as an alternative to operating profit,
net profit for the year/period or any other measure of performance
or as an indicator of its operating performance. Investors are
encouraged to review non-IFRS net profit for the year/period and
the reconciliation to its most directly comparable IFRS measure.
Non-IFRS net profit for the year/period presented here may not be
comparable to similarly titled measures presented by other
companies. Other companies may calculate similarly titled measures
differently, limiting their usefulness as comparative measures to
the Company's data. Tencent Music
encourages investors and others to review its financial information
in its entirety and not rely on a single financial measure.
Non-IFRS net profit for the year/period represents profit for
the year excluding share-based compensation expenses, net loss from
investments, amortization of intangible and other assets resulting
from the business combinations, fair value change on liabilities of
puttable shares and income tax effects.
Please see the "Unaudited Non-IFRS Financial Measure" included
in this press release for a full reconciliation of Non-IFRS net
profit for the year/period to its net profit for the
year/period.
About Tencent Music
Entertainment
Tencent Music Entertainment Group
(NYSE: TME) is the leading online music entertainment platform in
China, operating the country's
highly popular and innovative music apps: QQ Music, Kugou Music,
Kuwo Music and WeSing. Tencent
Music's mission is to use technology to elevate the role of music
in people's lives by enabling them to create, enjoy, share and
interact with music. Tencent Music's
platform comprises online music, online karaoke and music-centric
live streaming services, enabling music fans to discover, listen,
sing, watch, perform and socialize around music. For more
information, please visit ir.tencentmusic.com.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. Further information regarding these and other
risks, uncertainties or factors is included in the Company's
filings with the SEC. All information provided in this press
release is as of the date of this press release, and the Company
does not undertake any duty to update such information, except as
required under applicable law.
Investor Relations Contact
Tencent Music Entertainment Group
ir@tencentmusic.com
+86 (755) 8601-3388 ext. 857811
The Piacente Group, Inc.
Brandi Piacente
Email: TME@tpg-ir.com
Tel: +1 (212) 481-2050
Ross Warner
Email: TME@tpg-ir.com
Tel: +86 (10) 6508-0677
Media Relations Contact
tme.pr@icrinc.com
+1 (646) 992-2986
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED
INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online music
services
|
|
|
1,463
|
|
1,846
|
|
258
|
|
4,016
|
|
5,013
|
|
701
|
Social entertainment
services and others
|
|
|
3,506
|
|
4,661
|
|
652
|
|
9,572
|
|
13,128
|
|
1,837
|
|
|
|
4,969
|
|
6,507
|
|
910
|
|
13,588
|
|
18,141
|
|
2,538
|
Cost of
revenues
|
|
|
(3,006)
|
|
(4,296)
|
|
(601)
|
|
(8,147)
|
|
(11,956)
|
|
(1,673)
|
Gross
profit
|
|
|
1,963
|
|
2,211
|
|
309
|
|
5,441
|
|
6,185
|
|
865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(434)
|
|
(517)
|
|
(72)
|
|
(1,172)
|
|
(1,370)
|
|
(192)
|
General and
administrative expenses
|
|
|
(543)
|
|
(720)
|
|
(101)
|
|
(1,448)
|
|
(1,956)
|
|
(274)
|
Total operating
expenses
|
|
|
(977)
|
|
(1,237)
|
|
(173)
|
|
(2,620)
|
|
(3,326)
|
|
(465)
|
Interest
income
|
|
|
82
|
|
154
|
|
22
|
|
182
|
|
442
|
|
62
|
Other (losses)/
gains, net
|
|
|
(6)
|
|
60
|
|
8
|
|
6
|
|
119
|
|
17
|
Operating
profit
|
|
|
1,062
|
|
1,188
|
|
166
|
|
3,009
|
|
3,420
|
|
478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of loss of
investments accounted for
using equity method
|
|
|
(4)
|
|
(2)
|
|
(0)
|
|
(11)
|
|
(10)
|
|
(1)
|
Finance
Cost
|
|
|
(9)
|
|
(18)
|
|
(3)
|
|
(26)
|
|
(57)
|
|
(8)
|
Profit before
income tax
|
|
|
1,049
|
|
1,168
|
|
163
|
|
2,972
|
|
3,353
|
|
469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(85)
|
|
(145)
|
|
(20)
|
|
(265)
|
|
(416)
|
|
(58)
|
Profit for the
period
|
|
|
964
|
|
1,023
|
|
143
|
|
2,707
|
|
2,937
|
|
411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
964
|
|
1,026
|
|
144
|
|
2,709
|
|
2,940
|
|
411
|
Non-controlling
interests
|
|
|
-
|
|
(3)
|
|
(0)
|
|
(2)
|
|
(3)
|
|
(0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class
B ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.31
|
|
0.31
|
|
0.04
|
|
0.89
|
|
0.90
|
|
0.13
|
Diluted
|
|
|
0.30
|
|
0.31
|
|
0.04
|
|
0.86
|
|
0.88
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS
(2 Class A shares
equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
0.63
|
|
0.09
|
|
|
|
1.80
|
|
0.25
|
Diluted
|
|
|
|
|
0.62
|
|
0.09
|
|
|
|
1.76
|
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earning per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,080,492,207
|
|
3,269,006,517
|
|
3,269,006,517
|
|
3,060,847,486
|
|
3,264,217,250
|
|
3,264,217,250
|
Diluted
|
|
|
3,169,894,362
|
|
3,331,806,938
|
|
3,331,806,938
|
|
3,139,115,477
|
|
3,342,280,671
|
|
3,342,280,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in
earnings per ADS
computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
1,634,503,259
|
|
1,634,503,259
|
|
|
|
1,632,108,625
|
|
1,632,108,625
|
Diluted
|
|
|
|
|
1,665,903,469
|
|
1,665,903,469
|
|
|
|
1,671,140,336
|
|
1,671,140,336
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
Profit for
the period
|
|
|
964
|
|
1,023
|
|
143
|
|
2,707
|
|
2,937
|
|
411
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising
from business combinations*
|
|
|
75
|
|
91
|
|
13
|
|
219
|
|
271
|
|
38
|
Share-based
compensation
|
|
|
110
|
|
129
|
|
18
|
|
345
|
|
382
|
|
53
|
Losses/(gains) from
investments
|
|
|
1
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
(0)
|
Fair value change on
puttable shares **
|
|
|
9
|
|
9
|
|
1
|
|
26
|
|
27
|
|
4
|
Income tax
effects***
|
|
|
(14)
|
|
(18)
|
|
(3)
|
|
(40)
|
|
(53)
|
|
(7)
|
Non-IFRS Net
Profit
|
|
|
1,145
|
|
1,234
|
|
173
|
|
3,257
|
|
3,563
|
|
498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,145
|
|
1,237
|
|
173
|
|
3,259
|
|
3,566
|
|
499
|
Non-controlling
interests
|
|
|
-
|
|
(3)
|
|
(0)
|
|
(2)
|
|
(3)
|
|
(0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.37
|
|
0.38
|
|
0.05
|
|
1.06
|
|
1.09
|
|
0.15
|
Diluted
|
|
|
0.36
|
|
0.37
|
|
0.05
|
|
1.04
|
|
1.07
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS
(2 Class A shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
0.76
|
|
0.11
|
|
|
|
2.18
|
|
0.31
|
Diluted
|
|
|
|
|
0.74
|
|
0.10
|
|
|
|
2.13
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and
Class B ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,080,492,207
|
|
3,269,006,517
|
|
3,269,006,517
|
|
3,060,847,486
|
|
3,264,217,250
|
|
3,264,217,250
|
Diluted
|
|
|
3,169,894,362
|
|
3,331,806,938
|
|
3,331,806,938
|
|
3,139,115,477
|
|
3,342,280,671
|
|
3,342,280,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in
earnings per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
1,634,503,259
|
|
1,634,503,259
|
|
|
|
1,632,108,625
|
|
1,632,108,625
|
Diluted
|
|
|
|
|
1,665,903,469
|
|
1,665,903,469
|
|
|
|
1,671,140,336
|
|
1,671,140,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents the
amortization of identifiable assets, including intangible assets
and prepayments for music content, resulting from Tencent's
acquisition of CMC in
2016, our acquisition of Ultimate Music in 2017, and our
acquisition of certain subsidiaries in 2018 and 2019.
|
** Represents the
fair value changes on the put liability of certain shares issued in
2018
|
*** Represents the
income tax effects of amortization of identifiable assets,
including intangible assets and prepayments for music content,
resulting from business
combinations
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED
BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
As at December 31,
2018
|
|
As at September
30, 2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
168
|
|
162
|
|
23
|
Intangible
assets
|
|
1,763
|
|
1,637
|
|
229
|
Right-of-use
assets
|
|
-
|
|
144
|
|
20
|
Goodwill
|
|
17,088
|
|
17,140
|
|
2,398
|
Investments accounted
for using equity method
|
|
236
|
|
448
|
|
63
|
Financial assets at
fair value through other comprehensive
income
|
|
3,331
|
|
3,448
|
|
482
|
Other
investments
|
|
217
|
|
217
|
|
30
|
Prepayments and
deposits
|
|
901
|
|
850
|
|
119
|
Deferred tax
assets
|
|
123
|
|
129
|
|
18
|
Term
deposits
|
|
-
|
|
500
|
|
70
|
|
|
23,827
|
|
24,675
|
|
3,452
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
35
|
|
32
|
|
4
|
Accounts
receivable
|
|
1,483
|
|
1,734
|
|
243
|
Prepayments, deposits
and other assets
|
|
1,823
|
|
2,811
|
|
393
|
Other
investments
|
|
39
|
|
37
|
|
5
|
Short-term
investments
|
|
42
|
|
16
|
|
2
|
Term
deposits
|
|
-
|
|
600
|
|
84
|
Cash and cash
equivalents
|
|
17,356
|
|
20,036
|
|
2,803
|
|
|
20,778
|
|
25,266
|
|
3,535
|
|
|
|
|
|
|
|
Total
assets
|
|
44,605
|
|
49,941
|
|
6,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity
attributable to equity holders of the
Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in
capital
|
|
33,776
|
|
34,310
|
|
4,800
|
Shares held for share
award schemes
|
|
-
|
|
(29)
|
|
(4)
|
Other
reserves
|
|
903
|
|
1,277
|
|
179
|
Retained
earnings
|
|
3,040
|
|
5,980
|
|
837
|
|
|
37,721
|
|
41,540
|
|
5,812
|
Non-controlling
interests
|
|
51
|
|
95
|
|
13
|
|
|
|
|
|
|
|
Total
equity
|
|
37,772
|
|
41,635
|
|
5,825
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Other payables and
other liabilities
|
|
241
|
|
346
|
|
48
|
Deferred tax
liabilities
|
|
354
|
|
242
|
|
34
|
Lease
liability
|
|
-
|
|
86
|
|
12
|
|
|
595
|
|
674
|
|
94
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
1,830
|
|
2,496
|
|
349
|
Other payables and
other liabilities
|
|
2,742
|
|
3,085
|
|
432
|
Current tax
liabilities
|
|
235
|
|
377
|
|
53
|
Lease
liability
|
|
-
|
|
57
|
|
8
|
Deferred
revenue
|
|
1,431
|
|
1,617
|
|
226
|
|
|
6,238
|
|
7,632
|
|
1,068
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
6,833
|
|
8,306
|
|
1,162
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
44,605
|
|
49,941
|
|
6,987
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,644
|
|
1,352
|
|
189
|
|
3,700
|
|
4,167
|
|
583
|
Net cash provided
by/(used in) investing activities
|
|
333
|
|
(680)
|
|
(95)
|
|
(240)
|
|
(1,530)
|
|
(214)
|
Net cash provided by
financing activities
|
|
-
|
|
37
|
|
5
|
|
2,855
|
|
42
|
|
6
|
Net increase in cash
and cash equivalents
|
|
1,977
|
|
709
|
|
99
|
|
6,315
|
|
2,679
|
|
375
|
Cash and cash
equivalents at beginning of the period
|
|
9,529
|
|
19,350
|
|
2,707
|
|
5,174
|
|
17,356
|
|
2,428
|
Exchange
gains/(losses) on cash and cash equivalents
|
|
23
|
|
(23)
|
|
(3)
|
|
40
|
|
1
|
|
-
|
Cash and cash
equivalents at end of the period
|
|
11,529
|
|
20,036
|
|
2,803
|
|
11,529
|
|
20,036
|
|
2,803
|
View original
content:http://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-third-quarter-2019-unaudited-financial-results-300955467.html
SOURCE Tencent Music Entertainment
Group