Tencent Music Entertainment Group announced a 10.8% year-over-year decline in its third quarter 2023 revenue to 6.57 billion yuan (US$900.94 million), due mainly to falling revenue from social entertainment services and other sources.
Its top-line results, however, surpassed the analyst consensus forecast of 6.31 billion yuan, according to LSEG data.
Results were boosted by 42% year-over-year growth in paid subscriptions on its music streaming platform.
The company's 3Q net profit attributable to shareholders, meanwhile, rose 10.1% to 1.17 billion yuan (US$160 million).
Tencent Music ended the quarter with cash, cash equivalents and term deposits of 30.96 billion yuan (US$4.24 billion) as of September 30, 2023.
Tencent Music, which is considered China's Spotify, owns platforms such as QQ Music, Kugo, and Kuwou.
NYSE-listed shares of Tencent Music edged 0.2% higher to $7.44 in late-morning trading on Tuesday but have fallen 13% year to date.
Contact Sean at sean@proactiveinvestors.com