Tencent Music Reports Strong Q4 Net Income and EPS Growth

Tencent Music shares rise as earnings soar. The company reported a fourth-quarter net income increase to RMB 1.96 billion, which may positively impact its stock price due to strong financial performance.

Date: 18-03-2025

AI Rating: 7

Net Income Growth: Tencent Music reported a significant increase in net income for the fourth quarter, rising to RMB 1.96 billion ($268 million) from RMB 1.31 billion in the same period last year. This growth in net income indicates strong financial performance, which can instill confidence in investors.

Earnings Per Share (EPS): The earnings per ordinary share increased to RMB 0.63 ($0.09) compared to RMB 0.42 from the previous year. For American Depository Shares (ADS), the EPS rose to 1.26 ($0.17), up from RMB 0.83. This rise in EPS suggests that the company is generating more profit for its shareholders, further enhancing investor sentiment.

Revenue Growth: Revenue for the quarter climbed to RMB 7.46 billion ($1.02 billion) from RMB 6.89 billion, demonstrating solid revenue growth year-over-year. Increased revenue is a positive sign as it indicates a growing demand for the company’s services.

Adjusted Net Income and EPS: The adjusted net income of RMB 2.28 billion ($312 million) reflects an increase from RMB 1.58 billion last year. Adjusted EPS also saw growth, reaching RMB 0.73 ($0.10) compared to RMB 0.50 a year earlier. These metrics confirm that the company is performing well operationally.

Operating Profits: Operating profit was reported at RMB 2.41 billion ($330 million), up from RMB 1.71 billion in the prior year, highlighting operational efficiency improvements.

Dividends and Share Buyback: The announcement of a cash dividend of $0.09 per ordinary share and a new $1 billion share buyback program indicates that the company is committed to returning value to shareholders, which is generally perceived as a positive move.

Stocks: TME