2024-03-06 07:59:12 ET
Summary
- TME is China's largest online music platform with 594mn online music MAUs and 129 mn social entertainment mobile MAUs.
- Despite the high penetration rate, the Chinese online music industry is under-monetized and poised for growth, not through user base expansion but via increases in the paying ratio and ARPPU.
- TME's revenue growth is supported by strategic initiatives aimed at increasing the # of paying users and ARPPU, with projections indicating potential outperformance against consensus.
- Two key risks impacting TME are the intense competition from Cloud Music that threatens TME's ability to meet its growth targets and regulatory uncertainties around live-streaming.
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For further details see:
Tencent Music Entertainment's Foreseeable Path To Prosperity With Structural Opportunities