Tencent Music (TME) Earnings: 1Q Revenue Surpasses Estimates at 7.36 Billion Yuan

Tencent Music on Smartkarma

Analysts on Smartkarma are bullish on Tencent Music Entertainment Group (TME), citing its strong financial performance and strategic advancements. Baptista Research‘s report highlights TME’s robust Q4 2024 results, with a 8% increase in revenues reaching RMB 7.5 billion and a 47% surge in net profit to RMB 2.08 billion. They emphasize TME’s growth in online music services contributing to profit margin expansion. Another report by Ming Lu notes TME’s growing revenue in 4Q24, achieving historical high operating margins, and projects the stock price to double by the end of 2025.

In another bullish report by Baptista Research, Tencent Music‘s solid performance in Q3 2024 is lauded, showcasing revenue growth and increased subscriber numbers. The company’s focus on technological innovations and product upgrades is seen as driving their bullish outlook. The report highlights a 20% year-over-year revenue increase in online music services and a 29% rise in adjusted net profit. Ming Lu echoes positivity towards TME, suggesting that despite stagnant revenue, TME’s dominance in the Chinese music market will lead to significant benefits, akin to the success seen in their other high conviction stock, Meituan.

A look at Tencent Music Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

With a solid Smartkarma Smart Score, Tencent Music is poised for a promising long-term outlook. The company’s high Growth and Momentum scores suggest strong potential for future expansion and market performance. In addition, its Resilience score indicates a level of robustness in navigating challenges, offering stability to investors. While the Value and Dividend scores are mid-range, the company’s overall outlook appears positive, driven by its performance in growth and momentum factors.

Tencent Music Entertainment, a leading online music entertainment platform in China, continues to attract attention with its diverse offerings. Providing a platform for music discovery, recording, live streaming, and social interactions, Tencent Music caters to a wide audience seeking music-related content and experiences. With a balanced mix of competitive scores across various key factors, Tencent Music‘s strategic position within the online music industry bodes well for its future prospects.

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