Tencent Music takes copyright rules in stride, earnings beat estimates
Last updated on: 17 August,2021 10:05 am
The shares have lost half their market value this year due to Beijing's crackdown.
(Reuters) - Tencent Music Entertainment Group said on Monday China’s copyright rules were unlikely to have a big impact on its online subscriptions, and its chief executive believes regulators want to promote healthy development of the music industry.
Tencent Music’s second-quarter profit beat Wall Street expectations on Monday, as its advertising business rebounded and more people subscribed to its music streaming platform.
Paid subscribers for the company’s online music service grew 41% to 66.2 million, a record high, boosted by investments in long-form audio and a refreshed music library expanded by licensing deals with Universal Music Group, Sony Music and other labels.
Shares in Tencent Music rose 3.1% in extended trading after its earnings release, paring back losses that saw it fall 9% earlier on Monday.
The shares have lost half their market value this year due to Beijing’s crackdown on its tech giants and a ruling that barred the company’s parent, Tencent Holdings Ltd, from exclusive music copyright agreements.
Tencent Music’s CEO Liang Zhu told analysts that they believed Chinese regulators ultimately were keen to promote the healthy development of the music industry and the firm fully accepted the government’s policies.