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*
|
2Q21
|
2Q20
|
YoY %
|
Mobile MAU - online
music (million)
|
623
|
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
|
9.3
|
(3.2%)
|
Monthly ARPPU -
social entertainment (RMB)
|
153.3
|
124.6
|
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.
- To harness Weixin's social network to boost user engagement and
music-focused collaboration, QQ Music launched a feature which
allows users to update their Weixin status with the songs they're
listening to, making music sharing more dynamic and fun, as well as
a feature enabling users to customize their Weixin ringtones with
selected music from our music library. We also leveraged Weixin
Translation's cutting-edge AI technology to support high-quality
translations of English songs into Chinese.
[*] For the definitions of the cited key operating metrics,
please refer to the introduction section in the Company's 2020 20-F
filed on April 9, 2021. The monthly
ARPPU of social entertainment services is calculated based on
revenues from social entertainment and others, including
advertising services provided on our social entertainment
platforms.
Second Quarter 2021 Financial Results
Revenues
Total revenues for the second quarter of 2021 increased by
RMB1.08 billion, or 15.5%, to
RMB8.01 billion (US$1.24 billion) from RMB6.93 billion in the same period of 2020.
- Revenues from online music services for the second quarter of
2021 increased by 32.8% to RMB2.95
billion (US$457 million) from
RMB2.22 billion in the same period of
2020. The increase was driven by strong growth in music
subscription revenues and advertising service revenues. Revenues
from music subscriptions were RMB1.79
billion (US$277 million),
representing an increase by 36.3% compared to RMB1.31 billion in the second quarter of 2020,
primarily due to an increase of 40.6% in number of paying users,
partially offset by a slight decrease in ARPPU from RMB9.3 in the second quarter of 2020 to
RMB9.0 this quarter. The decrease in
ARPPU was mainly due to additional promotions this quarter.
- Revenues from social entertainment services and others for the
second quarter of 2021 increased by 7.4% to RMB5.06 billion (US$783
million) from RMB4.71 billion
in the same period of 2020. The increase was driven by increased
revenues from live streaming and advertising on social
entertainment platform. On a year-over-year basis, ARPPU increased
by 23.0% in the second quarter of 2021 while paying user of social
entertainment services decreased by 12.7%, as a result of
increasing competition with other pan-entertainment platforms.
Cost of Revenues
Cost of revenues for the second quarter of 2021 increased by
17.0% to RMB5.57 billion
(US$863 million) from RMB4.76 billion in the same period of 2020,
primarily due to increased content costs related to royalties and
revenue sharing fees.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2021 increased by 12.3%
to RMB2.44 billion (US$377 million) from RMB2.17 billion in the same period of 2020. Gross
margin was 30.4% for the second quarter of 2021, compared to 31.3%
in the same period of 2020. This slight decrease in gross margin
was primarily due to increased investments in content offerings and
increased revenue sharing fees to strengthen our platform's
competitiveness.
Operating Expenses for the Period
Total operating expenses for the second quarter of 2021
increased by 28.7% to RMB1.68 billion
(US$260 million) from RMB1.30 billion in the same period of 2020.
Operating expenses as a percentage of total revenues increased to
20.9% in the second quarter of 2021 from 18.8% in the same period
of 2020.
- Selling and marketing expenses for the second quarter of 2021
were RMB669 million (US$104 million), representing an increase of
15.5% year-over-year from RMB579
million in the same period of 2020. This increase was
primarily due to increased promotional spending incurred to
strengthen our products' competitiveness and higher user
acquisition expenses.
- General and administrative expenses for the second quarter of
2021 were RMB1.01 billion
(US$156 million), representing an
increase of 39.2% year-over-year from RMB724
million in the same period of 2020. The increase was mainly
due to the Company's increased investment in research and
development to expand its competitive advantages in product and
technology innovations, as well as post-acquisition awards, share
based compensation expenses and amortization of intangible assets
arising from the acquisition of Lazy Audio.
Operating Profit for the Period
Operating profit was RMB1.04
billion (US$160 million) in
the second quarter of 2021, compared to RMB1.11 billion in the same period of 2020.
Income Tax Expenses
Effective tax rate for the second quarter of 2021 was 11.5%,
compared to 12.8% in the same period of 2020, as some of our
entities became qualified for certain tax benefits in the second
half of 2020. The effective tax rate represents certain estimates
by the Company as to the tax obligations and benefits applicable to
it in each quarter.
Net Profit and Non-IFRS Net Profit for the Period
Net profit attributable to equity holders of the Company for the
second quarter of 2021 was RMB827
million (US$128 million),
compared to net profit of RMB939
million in the same period of 2020. Non-IFRS net profit
attributable to equity holders of the Company was RMB1.12 billion (US$ 173
million) for the second quarter of 2021, compared to
RMB1.15 billion in the same period of
2020. Please refer to the section titled "Non-IFRS Financial
Measure" for details.
Earnings per ADS
Basic and diluted earnings per American Depositary Shares
("ADS") were RMB0.49 (US$0.08) and RMB0.49 (US$0.08),
respectively, for the second quarter of 2021. Non-IFRS basic and
diluted earnings per ADS were RMB0.67
(US$0.10) and RMB0.66 (US$0.10),
respectively, for the second quarter of 2021. During the second
quarter of 2021, the Company had weighted averages of 1.67 billion
basic and 1.69 billion diluted ADSs outstanding, respectively. Each
ADS represents two of the Company's Class A ordinary shares. Please
refer to the section titled "Non-IFRS Financial Measure" for
details.
Cash Flows
Net cash provided by operating activities for the second quarter
of 2021 was RMB944 million
(US$146 million), compared to
RMB1.44 billion in cash provided by
operating activities during the same period of 2020. The decrease
in operating cash flow was primarily due to higher content royalty
payment during the second quarter of 2021. Net cash used in
investing activities for the second quarter of 2021 was
RMB2.92 billion (US$452 million), compared to net cash used in
investing activities of RMB2.07
billion during the same period of 2020. The fluctuation of
cash flows from investing activities was primarily due to the
purchase and maturity of term deposits and short-term investments,
and payment for acquisitions and equity investments. Net cash used
in financing activities for the second quarter of 2021 was
RMB1.40 billion (US$217 million), compared to RMB25 million of cash used in financing
activities during the same period of 2020. The increase in cash
used in financing activities was primarily due to cash paid for
repurchase of ordinary shares.
Cash, Cash Equivalents, Term Deposits and Short-term
Investments
As of June 30, 2021, the combined
balance of the Company's cash, cash equivalents, term deposits and
short-term investments amounted to RMB25.75
billion (US$3.99 billion),
compared to RMB26.97 billion as of
March 31, 2021. The decrease in the
combined balance was primarily driven by payment for stock
repurchase. Cash generated from operating activities had a positive
impact on the combined balances. The Company's cash and cash
equivalents balance was also affected by the change in the exchange
rate of RMB to USD at different balance sheet dates. The exchange
rate was 6.4566 to 1 on June 30,
2021.
Share Repurchase Program
Pursuant to the 2021 Share Repurchase Program announced on
March 28, 2021, during the second
quarter, we repurchased approximately 13.1 million ADSs from the
open market with cash for a total consideration of approximately
US$212 million.
Conference Call Information
Tencent Music's management will hold a conference call
on Monday, August 16, 2021, at 8:00 P.M. Eastern
Time or 8:00 A.M. Beijing Time on Tuesday,
August 17, 2021, to discuss the financial results. Listeners may
access the call by dialing the following numbers:
United States Toll
Free:
|
+1-888-317-6003
|
International:
|
+1-412-317-6061
|
Mainland China Toll
Free:
|
400-120-6115
|
Hong Kong, China Toll
Free:
|
800-963-976
|
Access
Code:
|
8606527
|
The replay will be accessible through August 23, 2021,
by dialing the following numbers:
United States Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Access
Code:
|
10157998
|
A live and archived webcast of the conference call will also be
available on the Company's investor relations website at
https://ir.tencentmusic.com/.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB6.4566 to US$1.00, the noon buying rate in effect on
June 30, 2021, in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred could be
converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
Non-IFRS Financial Measure
The Company uses non-IFRS net profit for the period, which is a
non-IFRS financial measure, in evaluating its operating results and
for financial and operational decision-making purposes.
Tencent Music believes that non-IFRS
net profit helps identify underlying trends in the Company's
business that could otherwise be distorted by the effect of certain
expenses that the Company includes in its profit for the period.
Tencent Music believes that non-IFRS
net profit for the period provides useful information about its
results of operations, enhances the overall understanding of its
past performance and future prospects and allows for greater
visibility with respect to key metrics used by its management in
its financial and operational decision-making.
Non-IFRS net profit for the period should not be considered in
isolation or construed as an alternative to operating profit, net
profit for the period or any other measure of performance or as an
indicator of its operating performance. Investors are encouraged to
review non-IFRS net profit for the period and the reconciliation to
its most directly comparable IFRS measure. Non-IFRS net profit for
the period presented here may not be comparable to similarly titled
measures presented by other companies. Other companies may
calculate similarly titled measures differently, limiting their
usefulness as comparative measures to the Company's data.
Tencent Music encourages investors
and others to review its financial information in its entirety and
not rely on a single financial measure.
Non-IFRS net profit for the period represents profit for the
year excluding amortization of intangible 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.
Please see the "Unaudited Non-IFRS Financial Measure" included
in this press release for a full reconciliation of Non-IFRS net
profit for the period to its net profit for the period.
About Tencent Music
Entertainment
Tencent Music Entertainment Group (NYSE: TME) is the
leading online music and audio entertainment platform
in China, operating the country's highly popular and
innovative music apps: QQ Music, Kugou Music, Kuwo Music and
WeSing. Tencent Music's mission is to use technology to
elevate the role of music in people's lives by enabling them to
create, enjoy, share and interact with
music. Tencent Music's platform comprises online music,
online audio, online karaoke and music-centric live streaming
services, enabling music fans to discover, listen, sing, watch,
perform and socialize around music. For more information, please
visit ir.tencentmusic.com.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. Further information regarding these and other
risks, uncertainties or factors is included in the Company's
filings with the SEC. All information provided in this press
release is as of the date of this press release, and the Company
does not undertake any duty to update such information, except as
required under applicable law.
Investor Relations Contact
Tencent Music Entertainment
Group
ir@tencentmusic.com
+86 (755) 8601-3388 ext. 883606
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED
INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online music
services
|
|
|
2,221
|
|
2,950
|
|
457
|
|
4,265
|
|
5,699
|
|
883
|
Social entertainment
services and others
|
|
|
4,711
|
|
5,058
|
|
783
|
|
8,978
|
|
10,133
|
|
1,569
|
|
|
|
6,932
|
|
8,008
|
|
1,240
|
|
13,243
|
|
15,832
|
|
2,452
|
Cost of
revenues
|
|
|
(4,762)
|
|
(5,571)
|
|
(863)
|
|
(9,096)
|
|
(10,929)
|
|
(1,693)
|
Gross
profit
|
|
|
2,170
|
|
2,437
|
|
377
|
|
4,147
|
|
4,903
|
|
759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(579)
|
|
(669)
|
|
(104)
|
|
(1,060)
|
|
(1,341)
|
|
(208)
|
General and
administrative expenses
|
|
|
(724)
|
|
(1,008)
|
|
(156)
|
|
(1,405)
|
|
(1,891)
|
|
(293)
|
Total operating
expenses
|
|
|
(1,303)
|
|
(1,677)
|
|
(260)
|
|
(2,465)
|
|
(3,232)
|
|
(501)
|
Interest
income
|
|
|
153
|
|
123
|
|
19
|
|
327
|
|
277
|
|
43
|
Other gains,
net
|
|
|
87
|
|
152
|
|
24
|
|
145
|
|
251
|
|
39
|
Operating
profit
|
|
|
1,107
|
|
1,035
|
|
160
|
|
2,154
|
|
2,199
|
|
341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net loss of
investments accounted for using equity method
|
|
|
(8)
|
|
(22)
|
|
(3)
|
|
(19)
|
|
(49)
|
|
(8)
|
Finance
cost
|
|
|
(17)
|
|
(29)
|
|
(4)
|
|
(37)
|
|
(60)
|
|
(9)
|
Profit before
income tax
|
|
|
1,082
|
|
984
|
|
152
|
|
2,098
|
|
2,090
|
|
324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(139)
|
|
(113)
|
|
(18)
|
|
(269)
|
|
(240)
|
|
(37)
|
Profit for the
period
|
|
|
943
|
|
871
|
|
135
|
|
1,829
|
|
1,850
|
|
287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
939
|
|
827
|
|
128
|
|
1,826
|
|
1,753
|
|
272
|
Non-controlling
interests
|
|
|
4
|
|
44
|
|
7
|
|
3
|
|
97
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary
shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.28
|
|
0.25
|
|
0.04
|
|
0.55
|
|
0.52
|
|
0.08
|
Diluted
|
|
|
0.28
|
|
0.24
|
|
0.04
|
|
0.55
|
|
0.52
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS
(2 Class A shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.57
|
|
0.49
|
|
0.08
|
|
1.10
|
|
1.05
|
|
0.16
|
Diluted
|
|
|
0.56
|
|
0.49
|
|
0.08
|
|
1.09
|
|
1.03
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and Class B
ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,309,451,768
|
|
3,342,313,643
|
|
3,342,313,643
|
|
3,308,207,122
|
|
3,348,467,092
|
|
3,348,467,092
|
Diluted
|
|
|
3,350,151,736
|
|
3,375,732,279
|
|
3,375,732,279
|
|
3,350,000,985
|
|
3,388,178,977
|
|
3,388,178,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in
earnings per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,654,725,884
|
|
1,671,156,821
|
|
1,671,156,821
|
|
1,654,103,561
|
|
1,674,233,546
|
|
1,674,233,546
|
Diluted
|
|
|
1,675,075,868
|
|
1,687,866,139
|
|
1,687,866,139
|
|
1,675,000,493
|
|
1,694,089,489
|
|
1,694,089,489
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
UNAUDITED NON-IFRS
FINANCIAL MEASURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
Profit for
the period
|
|
|
943
|
|
871
|
|
135
|
|
1,829
|
|
1,850
|
|
287
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and other assets arising from acquisitions*
|
|
|
99
|
|
120
|
|
19
|
|
187
|
|
230
|
|
36
|
Share-based
compensation
|
|
|
139
|
|
187
|
|
29
|
|
276
|
|
349
|
|
54
|
(Gains)/Losses from
investments**
|
|
|
(19)
|
|
16
|
|
2
|
|
(19)
|
|
37
|
|
6
|
Fair value change on
puttable shares ***
|
|
|
10
|
|
-
|
|
-
|
|
19
|
|
-
|
|
-
|
Income tax
effects****
|
|
|
(17)
|
|
(33)
|
|
(5)
|
|
(34)
|
|
(70)
|
|
(11)
|
Non-IFRS Net
Profit
|
|
|
1,155
|
|
1,161
|
|
180
|
|
2,258
|
|
2,396
|
|
371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
1,151
|
|
1,117
|
|
173
|
|
2,255
|
|
2,299
|
|
356
|
Non-controlling
interests
|
|
|
4
|
|
44
|
|
7
|
|
3
|
|
97
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary
shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.35
|
|
0.33
|
|
0.05
|
|
0.68
|
|
0.69
|
|
0.11
|
Diluted
|
|
|
0.34
|
|
0.33
|
|
0.05
|
|
0.67
|
|
0.68
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS
(2 Class A shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.70
|
|
0.67
|
|
0.10
|
|
1.36
|
|
1.37
|
|
0.21
|
Diluted
|
|
|
0.69
|
|
0.66
|
|
0.10
|
|
1.35
|
|
1.36
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per Class A and Class B
ordinary share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,309,451,768
|
|
3,342,313,643
|
|
3,342,313,643
|
|
3,308,207,122
|
|
3,348,467,092
|
|
3,348,467,092
|
Diluted
|
|
|
3,350,151,736
|
|
3,375,732,279
|
|
3,375,732,279
|
|
3,350,000,985
|
|
3,388,178,977
|
|
3,388,178,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in
earnings per ADS computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,654,725,884
|
|
1,671,156,821
|
|
1,671,156,821
|
|
1,654,103,561
|
|
1,674,233,546
|
|
1,674,233,546
|
Diluted
|
|
|
1,675,075,868
|
|
1,687,866,139
|
|
1,687,866,139
|
|
1,675,000,493
|
|
1,694,089,489
|
|
1,694,089,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents the
amortization of identifiable assets, including intangible assets
and prepayments for music content, resulting from
acquisitions
|
|
|
** Including the net
gains on deemed disposals/disposals of investments, fair value
changes arising from investments, impairment provision of
investments and other expenses in relation
to equity transactions of investments
|
*** Represents the
fair value changes on the put liability of certain shares issued in
2018
|
|
|
**** Represents the
income tax effects of Non-IFRS adjustments
|
|
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONSOLIDATED
BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
As at December 31,
2020
|
|
As at June 30,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
176
|
|
188
|
|
29
|
Right-of-use
assets
|
|
311
|
|
305
|
|
47
|
Intangible
assets
|
|
2,020
|
|
2,740
|
|
424
|
Goodwill
|
|
17,492
|
|
19,062
|
|
2,952
|
Investments accounted
for using equity method
|
|
2,255
|
|
3,529
|
|
547
|
Financial assets at
fair value through other comprehensive income
|
9,771
|
|
8,544
|
|
1,323
|
Other
investments
|
|
349
|
|
387
|
|
60
|
Prepayments, deposits
and other assets
|
|
956
|
|
1,135
|
|
176
|
Deferred tax
assets
|
|
303
|
|
339
|
|
53
|
Term
deposits
|
|
2,953
|
|
3,453
|
|
535
|
|
|
36,586
|
|
39,682
|
|
6,146
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Inventories
|
|
18
|
|
21
|
|
3
|
Accounts
receivable
|
|
2,800
|
|
2,599
|
|
403
|
Prepayments, deposits
and other assets
|
|
2,846
|
|
3,415
|
|
529
|
Other
investments
|
|
37
|
|
37
|
|
6
|
Short-term
investments
|
|
-
|
|
2,335
|
|
362
|
Term
deposits
|
|
14,858
|
|
13,144
|
|
2,036
|
Cash and cash
equivalents
|
|
11,128
|
|
6,822
|
|
1,057
|
|
|
31,687
|
|
28,373
|
|
4,394
|
|
|
|
|
|
|
|
Total
assets
|
|
68,273
|
|
68,055
|
|
10,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity
attributable to equity holders of the Company
|
|
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
|
0
|
Additional paid-in
capital
|
|
35,044
|
|
36,159
|
|
5,600
|
Shares held for share
award schemes
|
|
(78)
|
|
(168)
|
|
(26)
|
Treasury
shares
|
|
(134)
|
|
(1,816)
|
|
(281)
|
Other
reserves
|
|
6,300
|
|
4,734
|
|
733
|
Retained
earnings
|
|
11,111
|
|
12,864
|
|
1,992
|
|
|
52,245
|
|
51,775
|
|
8,019
|
Non-controlling
interests
|
|
486
|
|
583
|
|
90
|
|
|
|
|
|
|
|
Total
equity
|
|
52,731
|
|
52,358
|
|
8,109
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Notes
payables
|
|
5,175
|
|
5,126
|
|
794
|
Accounts
payable
|
|
136
|
|
93
|
|
14
|
Other payables and
other liabilities
|
|
68
|
|
48
|
|
7
|
Deferred tax
liabilities
|
|
265
|
|
282
|
|
44
|
Lease
liabilities
|
|
218
|
|
216
|
|
33
|
Deferred
revenue
|
|
78
|
|
68
|
|
11
|
|
|
5,940
|
|
5,833
|
|
903
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
3,565
|
|
4,403
|
|
682
|
Other payables and
other liabilities
|
|
3,881
|
|
3,103
|
|
481
|
Current tax
liabilities
|
|
445
|
|
468
|
|
72
|
Lease
liabilities
|
|
103
|
|
101
|
|
16
|
Deferred
revenue
|
|
1,608
|
|
1,789
|
|
277
|
|
|
9,602
|
|
9,864
|
|
1,528
|
|
|
|
|
|
|
|
Total
liabilities
|
|
15,542
|
|
15,697
|
|
2,431
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
68,273
|
|
68,055
|
|
10,540
|
TENCENT MUSIC
ENTERTAINMENT GROUP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,439
|
|
944
|
|
146
|
|
2,505
|
|
2,822
|
|
437
|
Net cash used in
investing activities
|
|
(2,072)
|
|
(2,921)
|
|
(452)
|
|
(6,168)
|
|
(5,303)
|
|
(821)
|
Net cash used in
financing activities
|
|
(25)
|
|
(1,401)
|
|
(217)
|
|
(156)
|
|
(1,773)
|
|
(275)
|
Net decrease in cash
and cash equivalents
|
|
(658)
|
|
(3,378)
|
|
(523)
|
|
(3,819)
|
|
(4,254)
|
|
(659)
|
Cash and cash
equivalents at beginning of the period
|
|
12,266
|
|
10,274
|
|
1,591
|
|
15,426
|
|
11,128
|
|
1,724
|
Exchange differences
on cash and cash equivalents
|
|
168
|
|
(74)
|
|
(11)
|
|
169
|
|
(52)
|
|
(8)
|
Cash and cash
equivalents at end of the period
|
|
11,776
|
|
6,822
|
|
1,057
|
|
11,776
|
|
6,822
|
|
1,057
|
View original
content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-second-quarter-2021-unaudited-financial-results-301355825.html
SOURCE Tencent Music Entertainment
Group