Tencent Music Entertainment report another record-breaking quarter that sets them up to hit a whopping earning for 2023.

Tencent Music are having a fantastic year. The company which runs various Chinese music streaming services, such as Kugou, QQ, and Kuwo, has reported their Q3 2023 results.

Tencent earnings reveals 42% year-on-year growth for TME (Tencent Music Entertainment). Their revenue from music subscribers for the first 9 months of the year totals roughly $1.215 billion. For reference, Tencent Music reported $1.26 billion for the whole year in 2022.

This incredible growth sets them up to hit $1.5 billion for the year, easily. The service reported a continuous drop in revenues for “social entertainment”. Despite incredible growth from music subscriptions, overall revenue was down 10.8% due to their social entertainment division.

Tencent Music Entertainment CEO, Ross Liang said: “Online music has more visibly become our core business, driving engagement and earnings growth, while we adjust our social entertainment offerings. We will continue to reimagine the way music connects with people, creating a more enjoyable user experience through technology and product innovation.”

2023 has been another astonishing year for the digital music industry across the board. Spotify reported 26% YoY growth in their Q3 report and Deezer revealed that they have added 500,000 subscribers in theirs.

Tencent’s earnings show that China are not to be ignored as a major player in the music streaming competition. In 2022, China entered the top five in the recorded music market, according to data from the IFPI.

Tencent Music Entertainment’s Executive Chairman, Cussion Pang added: “The accelerated year-over-year subscription revenue growth was supported by expansion in both subscriber base and ARPPU. Our evolving ecosystem and resilient business enabled us to deliver a group-wide margin expansion. These achievements further unlock the value of music and pave the way for our sustainable development in the long run.”

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