Tencent Music Entertainment Group (NYSE:TME) reported better-than-expected fourth-quarter earnings on Tuesday.
Tencent Music Entertainment reported fourth-quarter revenue of $971 million (6.89 billion yuan), down 7.2% year-on-year, beating the consensus of $932 million. China's leading online music and audio entertainment platform's adjusted EPADS of $0.14 (CNY1.00) was in line with consensus, according to data from Benzinga Pro.
Online music monthly active users (MAUs) decreased 4.2% year over year to 576 million. Mobile MAU for social entertainment decreased 28.8% year-on-year to 104 million. Online music monthly ARPPU increased by 20.2% year-on-year to RMB 10.7;
Social entertainment monthly ARPPU decreased by 54.0% year-on-year to RMB 78.0, and the number of online music paying users increased by 20.6% year-on-year to RMB 106.7 million.
Tencent Music stock rose 6.4% on Tuesday to close at $11.04.
These analysts changed their price targets for Tencent Music after the earnings release.
- citygroup Tencent Music Entertainment's price target was raised from $9 to $13. Citigroup analyst Alicia Yap upgraded the stock from “neutral” to “buy.”
- B of A securities Tencent Music Entertainment's price target was raised from $10.5 to $12.3. B of A Securities analyst Lei Zhang maintained a “buy” rating.
- Mizuho Raised Tencent Music Entertainment's price target from $12 to $13. Mizuho analyst Wei Huang maintained a “buy” rating.
- HSBC Tencent Music Entertainment's price target was raised from $9.5 to $10.4. HSBC analyst Charlene Liu maintained a “hold” rating.
- standard Raised Tencent Music Entertainment's price target from $9 to $14. Benchmark analyst Phong Jiang maintained a “buy” rating on the stock.
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