© Reuters. The logo of China’s Tencent Music Entertainment Group is seen next to an earphone in this illustration picture taken March 22, 2021. REUTERS/Florence Lo/Illustration
(Reuters) -Tencent Music Entertainment Corp beat Wall Street estimates for third-quarter revenue and profit on Tuesday, as more paying users signed up on the Chinese music streaming company’s platform.
A recovery in advertising sales helped the company that has been ramping up its original content slate to help put more users behind a paywall.
Still, the Chinese economy has slowed this year due to Beijing’s “zero-COVID” policy that has locked down large swaths of the population under some of strictest restrictions globally.
Total revenue fell 5.6% to $7.37 billion yuan ($7.37 billion) in the quarter ended Sept. 30, but beat analysts’ average estimate of $7.07 billion, according to Refinitiv data.
Paying users at its online music streaming service rose to 85.3 million in the quarter from 82.7 million in the second quarter.
Net profit attributable to equity holders was 1.06 billion yuan, up from 740 million yuan in the same period last year.
Excluding items, the company earned 86 yuan per American depository share (ADS), above expectations of a profit of 71 yuan per ADS.
($1 = $1.0000)
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