Tencent Music’s Biggest Growth Engine Sputters Out During the COVID-19 Crisis
Tencent Music (NYSE: TME), China's top music streaming company, recently posted its first-quarter earnings. Its revenue rose 10% annually to 6.31 billion yuan ($891 million), which beat estimates by $3 million but marked its slowest growth since its IPO in late 2018.
Its net income fell 10% to 887 million yuan ($125 million). Its adjusted net income, which excludes stock-based compensation and other variable expenses, dropped 8% to 1.1 billion yuan ($156 million), or $0.09 per ADS, which still matched analysts' expectations.
Tencent Music's numbers weren't terrible, but they suggest it wasn't immune to the COVID-19 headwinds. The pandemic tossed a wrench into its core growth engine, the social entertainment segment that houses its live streaming business.
Source Fool.com
