TENCENT MUSIC ENTERTAINMENT Reports Q4 FY2022 Earnings Results on March 21 2023
March 28, 2023
Earnings Overview
On March 21 2023, TENCENT MUSIC ENTERTAINMENT ($SEHK:01698) revealed its financial results for the fourth quarter of FY2022, which concluded on December 31 2022. The overall revenue for the quarter amounted to CNY 1.1 billion, a 113.0% rise compared to the same period of the prior year. Nevertheless, net income decreased by 2.5%, reaching CNY 7.4 billion year-on-year.
Share Price
TENCENT MUSIC ENTERTAINMENT reported their fourth quarter FY2022 earnings results on March 21 2023. On Tuesday, the stock opened at HK$29.9 and closed at HK$30.1, representing a 0.7% increase from the previous day’s closing price. This was driven by robust performance across its music streaming and live music services.
Overall, TENCENT MUSIC ENTERTAINMENT’s earnings results surpassed expectations and were a positive sign for investors, as the company continues to grow in popularity and expand its offerings. Going forward, the company is expected to continue to benefit from its strong presence in the Chinese market, as well as its growing presence in international markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tencent Music Entertainment. More…
| Total Revenues | Net Income | Net Margin |
| 28.34k | 3.68k | 13.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tencent Music Entertainment. More…
| Operations | Investing | Financing |
| 7.48k | -1.45k | -3.42k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tencent Music Entertainment. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 67.01k | 17.88k | 13.93 |
Key Ratios Snapshot
Some of the financial key ratios for Tencent Music Entertainment are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.7% | -7.5% | 15.8% |
| FCF Margin | ROE | ROA |
| 26.4% | 5.9% | 4.2% |
Analysis
At GoodWhale, we recently conducted an analysis of TENCENT MUSIC ENTERTAINMENT’s wellbeing. After a thorough review of their finances and operations, we have assigned them a medium risk rating. We also found two risk warnings in the balance sheet that require further investigation. These risks may be related to non-financial issues. To access these sensitive findings, we recommend becoming a registered user on our platform. Once registered, users can view all of our analyses and discover any overlooked details. More…
Peers
The competition in the online music streaming sector is rife, with Tencent Music Entertainment Group (TME) facing stiff competition from Lizhi Inc, Bilibili Inc, and JOYY Inc. All four companies are vying for a share of the market, each offering unique services and products to attract users.
– Lizhi Inc ($NASDAQ:LIZI)
Lizhi Inc. is a publically traded Chinese audio and video streaming platform engaged in audio and video streaming services, music and audio content, radio, live streaming, and related value-added services. As of 2023, the company had a market capitalization of 35.06M and a Return on Equity of 13.45%. Market capitalization is an indicator of the size of a company, and shows the total value of a company’s equity. A higher market cap indicates a larger, more established company with more access to capital. A higher return on equity indicates that the company is generating more profits compared to its total equity, suggesting good management and strong profitability. Lizhi Inc. has a relatively small market capitalization compared to other companies in its sector, but its 13.45% return on equity indicates that it has been performing well.
– Bilibili Inc ($SEHK:09626)
Bilibili Inc is a Chinese online entertainment company. Founded in 2009, the company offers a variety of services, including video streaming, e-commerce, and gaming. As of 2023, Bilibili Inc has a market cap of 76.92B and a Return on Equity of -28.14%. This indicates that the company is not performing as well as it did in the past and investors are not viewing the company as favorably as they once did. Despite this, the large market cap shows that Bilibili Inc is still a major player in the online entertainment industry and has the potential to make a comeback.
– JOYY Inc ($NASDAQ:YY)
JOYY Inc is a Chinese social media and gaming company that has seen tremendous success since its initial public offering in 2014. As of 2023, the company has a market cap of $2.1 billion. This market cap signifies the confidence many investors have in the future of the company and their belief in the potential for continued success. The company’s return on equity (ROE) of 7.54% also reflects investor confidence in the firm’s financial performance. This ROE indicates that the firm is able to generate a substantial return on the capital they have invested in the business. JOYY Inc continues to build on its success, offering a variety of social media and gaming platforms to its customers.
Summary
TENCENT MUSIC ENTERTAINMENT reported a total revenue of CNY 1.1 billion for Q4 of FY2022, showing a 113.0% increase year over year. Net income, however, decreased by 2.5%, falling to CNY 7.4 billion. Investors should pay attention to the rapid growth of TENCENT MUSIC ENTERTAINMENT’s revenue, while monitoring the impact of the slight net income decline. Future performance should be watched closely, as it will give a better indication of the company’s overall health and potential for further growth.
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