China's Tencent Music Q2 revenue rises on increased concert, merchandise sales
TME•Drivers and outlook
- Membership services — Growth in Q2 membership services revenue was driven by expanded SVIP offering and the consolidation of Ximalaya.
- Marketing and consumption services — Strong Q2 growth in marketing and consumption services, including offline performances and merchandise sales.
- Concert and merchandise sales — Robust growth in concert-related revenue and merchandise sales contributed to overall music services revenue.
The company did not provide specific financial guidance for the current or future periods.
Key details and analyst coverage
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q2 Revenue | RMB 8.93 bln | |
| Q2 Adjusted Earnings per ADS | RMB 1.70 |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the online services peer group is "buy". Wall Street's median 12-month price target for Tencent Music Entertainment Group is $14.30, about 44.4% above its August 10 closing price of $9.90.
