Tencent Music Entertainment Group Full Year 2023 Earnings: EPS Beats Expectations

Tencent Music Entertainment Group (NYSE:TME) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥27.8b (down 2.1% from FY 2022).

• Net income: CN¥4.92b (up 34% from FY 2022).

• Profit margin: 18% (up from 13% in FY 2022). The increase in margin was driven by lower expenses.

• EPS: CN¥3.15 (up from CN¥2.30 in FY 2022).

revenue-and-expenses-breakdown

All figures shown in the chart above are for the trailing 12 month (TTM) period

Tencent Music Entertainment Group EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.8%.

In the last 12 months, the only revenue segment was Internet Information Providers contributing CN¥27.8b. Notably, cost of sales worth CN¥18.0b amounted to 65% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥4.12b (85% of total expenses). Explore how TME's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Entertainment industry in the US.

Performance of the American Entertainment industry.

The company's shares are up 6.0% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We have a graphic representation of Tencent Music Entertainment Group's balance sheet and an in-depth analysis of the company's financial position.

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