Tencent Music (TME) Earnings: 2Q Revenue Surpasses Expectations with Strong Operating Income

Tencent Music on Smartkarma

Analyst coverage of Tencent Music on Smartkarma highlights positive sentiments towards the company’s recent developments. Ming Lu‘s report, “Tencent Music (TME): Quick Note – Acquisition of Ximalaya,” discusses TME’s proposed acquisition of Ximalaya, a long audio app, emphasizing Ximalaya’s advantages in monthly active users and car radio. Another report by Ming Lu, “Tencent Music (TME): 1Q25, Unnoticed Growth Continued, 80% Upside,” notes healthy first-quarter results and significant growth in main businesses, projecting an 83% upside for the stock by yearend 2025.

Similarly, Baptista Research‘s insights on Tencent Music Entertainment Group highlight the company’s robust financial performance in the fourth quarter of 2024, showcasing a return to top-line growth and substantial profit margin expansion. The report emphasizes TME’s advancements in online music services contributing to revenue growth and profitability. Ming Lu‘s additional report, “Tencent Music (TME, 1698 HK): 4Q24, Historical Margins Better than Game Time,” underscores TME’s revenue growth in the fourth quarter of 2024 and historical high operating margins, projecting a positive outlook for the stock price to double by the end of 2025.

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

Looking ahead, Tencent Music‘s long-term outlook appears promising as indicated by its Smartkarma Smart Scores. Scoring high in areas such as Growth and Momentum, the company demonstrates strong potential for expansion and market performance. With a solid Resilience score, Tencent Music has shown a capacity to withstand market fluctuations and economic challenges effectively. Additionally, a moderate Value and Dividend score suggest a balanced approach to financial management, indicating stability and growth opportunities for investors.

Tencent Music Entertainment, known for its online music entertainment platform in China, offers a diverse range of music-related services for users. The platform enables users to explore, listen to, sing, watch, perform, and connect with music content online. With its favorable Smartkarma Smart Scores, Tencent Music is positioned to capitalize on its innovative offerings and strong market presence to drive continued growth and value creation for shareholders in the long run.

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