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Tencent Music Tencent Music Entertainment Group Announces Second Quarter 2021 Unaudited Financial Results SHENZHEN , China , Aug. 16 , 2021 / PRNewswire / -- Tencent Music Entertainment Group ( " Tencent Music , " " TME , " or the " Company " ) ( NYSE : TME ) , the leading online music and audio entertainment platform in China , today announced its unaudited financial results for the second quarter ended June 30 , 2021 . Financial and Operational Highlights In the three months ended June 30 , 2021 : • Total revenues were RMB8.01 billion ( US $ 1.24 billion ) , representing an increase of 15.5 % year - over - year . • Online music services revenues grew by 32.8 % year - over - year . Revenues from music subscriptions were RMB1.79 billion ( US $ 277 million ) , representing a 36.3 % year - over - year growth . • Online music paying users reached 66.2 million , increasing by 40.6 % year - over - year . On a sequential basis , the number of online music paying users grew by 5.3 million , the largest quarterly net increase since 2016. The paying ratio was 10.6 % , up from 7.2 % in the second quarter of 2020 and 9.9 % in the first quarter of 2021 , respectively . • Net profit of the Company was RMB871 million ( US $ 135 million ) and net profit attributable to equity holders of the Company was RMB827 million ( US $ 128 million ) . • Non - IFRS net profit of the Company [ 1 ] was RMB1.16 billion ( US $ 180 million ) and Non - IFRS net profit attributable to equity holders of the Company [ 1 ] was RMB1.12 billion ( US $ 173 million ) . " We would like to reiterate that TME sincerely accepts the decision issued in July by the regulator pertaining to exclusive music licensing arrangements . We are committed to fully complying with all requirements in a timely manner . While we expect some impact to our business operations as a result of this decision , we remain steadfast in our ongoing goals of fostering innovation , fulfilling our social responsibilities , providing users with better services and promoting the long - term , healthy development of the digital music industry , " said Mr. Cussion Pang , Executive Chairman of Tencent Music . " In the second quarter , we delivered steady growth overall . Our strong momentum in online music monetization was supported by solid subscriptions and advertising revenue growth , while social entertainment services continued to progress at a good pace . Our efforts to build a leading online music and audio entertainment ecosystem resulted in an over 90 % year - over - year increase in long - form audio MAUS . We will operationally focus on the dual flywheels of content and platform , and have taken several important steps to expand our ecosystem to empower artists and provide users with one - stop music and audio services . With respect to content , we will continue to broaden partnerships with music labels , and work with artists and content partners to develop more differentiated content while further strengthening our self - production capability . We also made strategic upgrades to the business model of TME Live , integrating online concerts with offline events to offer differentiated services and solutions for artists ranging from notable superstars to up - and - coming and indie musicians . " " With respect to platform , in keeping up with our primary focus to explore new ways to better serve users in an increasingly more visual , social and interactive environment , we introduced several initiatives to strengthen our platform's competitiveness . For social entertainment services in particular , we are in the process of improving our product features , boosting social and community - centric use cases which are crucial for user engagement and retention , " commented Mr. Ross Liang , CEO of Tencent Music . " We also deepened our cooperation with the broader Tencent ecosystem , including leveraging Weixin Video Account , to enrich video content offering , enhance content promotion and cultivate a dynamic platform for artists and users to unleash their creativity , " concluded Mr. Liang . [ 1 ] Non - IFRS net profit and Non - IFRS net profit attributable to equity holders of the Company was arrived at after excluding the combined effect of amortization of intangible assets and other assets arising from acquisitions , share - based compensation expenses , net losses / gains from investments , fair value change on puttable shares and income tax effects . Recent Operational Highlights • TME's online music and social entertainment services key operating metrics * Mobile MAU - online music ( million ) 2Q21 623 2Q20 YoY % 651 ( 4.3 % ) Mobile MAU - social entertainment ( million ) 209 241 ( 13.3 % ) Paying users online music ( million ) 66.2 47.1 40.6 % Paying users - social entertainment ( million ) 11.0 12.6 ( 12.7 % ) Monthly ARPPU - online music ( RMB ) 9.0 Monthly ARPPU - social entertainment ( RMB ) 153.3 9.3 124.6 ( 3.2 % ) 23.0 % • The year - over - year decline in online music mobile MAUS was primarily due to some churn of our casual users served by pan - entertainment platforms ; however , online music mobile MAUS were up sequentially , and total user time spent was up both year - over - year and quarter - over - quarter . • Online social entertainment mobile MAUS declined year - over - year , as a result of increasing competition with other pan - entertainment platforms . To respond to the evolving environment , we recently launched product upgrades and initiatives to improve our platform's videolization , socialization and community building features , such as WeSing's upcoming upgrades to online karaoke room and virtual live streaming room . • We are evolving to expand our ecosystem to better serve users : 1. Broadened our offering of licensed , self - produced and co - produced content : • With respect to licensed content , we continued to deepen our partnerships with music labels while making inroads in diverse music verticals , including new hits , Chinese ancient style , hip - hop , and music for gaming , movies , television programs and variety shows . • We continued to work closely with artists and key music industry partners to create more original content and have enjoyed successes such as : a ) our efforts to cultivate and promote indie musicians through the Tencent Musician Platform have led to triple - digit year - over - year growth in indie artists with streams of their songs increasing consistently on both year - over - year and quarter - over - quarter basis ; b ) through extensive collaboration with Tencent across multiple businesses , we have co - produced over two dozen chart - topping songs across gaming , film , literature and comic categories with well - known IPs ; c ) leveraging our talent pool and our understanding of music , we co - produced the theme song for Cliff Walkers , a movie directed by a highly regarded Chinese film director . 2. Upgraded TME Live by adopting a hybrid model featuring both online concerts and offline events , including indoor music festivals and parties . This allows us to cater to the diversified needs of musicians ranging from superstars to up - and - coming and indie musicians . In recent events , we introduced new interactive monetization features such as ticketing , VIP privileges , and merchandise to unlock the value and market potential for online live performances . • We are working more closely with the broader Tencent ecosystem to enhance music - focused collaboration and promotional capability : • Deepened collaboration with Weixin Video Account to maximize exposure for musicians . One recent example was QQ Music joining forces with Weixin Video Account to present Elegant Summer Live , an online event featuring well - known musicians and bands .