Tencent Music Entertainment Group Q2 2024 Earnings Call Transcript

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Provided by Quartr
August 13, 2024

There are 10 speakers on the call.

Operator

Good evening and good morning and welcome to Tencent Music Entertainment's 2nd Quarter 20 24 Earnings Conference Call. I'm Nelson Tu, Head of IR. We announced our quarterly financial results earlier today before the U. S. Market opened.

Operator

The earnings release is now available on our IR website and via PR Newswire services. During today's call, you will hear from Mr. Keshun Peng, our Executive Chairman and Mr. Ross Liang, our CEO, who will share an overview of our company's strategies and business updates. Then Ms.

Operator

Shirley Hu, our CFO, will discuss our financial results before we open the call for questions. Before we continue, I refer you to the Safe Harbor statement in our earnings release, which applies to this call as we made forward looking statements. Please note that we discuss non IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under IFRS in our earnings release and filings with the SEC. All participants are muted at this time. After management's remarks, there will be a Q and A session.

Operator

And please be advised that today's call is being recorded. With that, I'm very pleased to turn the call over to Ka Shen, Executive Chairman of TME. Ka Shen?

Speaker 1

Thank you, Melissa. Hello, everyone, and thank you for joining our call today. We are excited to report another solid quarter underpinned by a 28% year over year growth in online music services as well as a 26% year over year growth increase in adjusted net profit. The outstanding net addition of over 10,000,000 music subscribers in the first half of twenty twenty four coupled with a rise in ARPPU once again demonstrated our strong ability to break new brands within China's streaming landscape. We remain optimistic about the music industry's long term potential and are committed to our meet to long term goals.

Speaker 1

In the meantime, we are consistently adjusting ourselves to better adapt to changing external environments, evolving user mindsets and our different business development stage to continuously innovate and achieve sustainable growth at a healthy pace and with the right balance. Let me now share some recent highlights on our expansive content ecosystem, which is getting increasingly rewarding. First of all, we continue to expand and reinforce partnerships with artists and record labels to enrich our music library and to bring the best content available to our users. Our long standing and extensive win win partnerships with music labels enable us to secure more content centric privileges for users, including but not limited to early access to the latest hits. This quarter, we extended our collaborative licensing agreements with some well known Chinese bands such as Soda Green, Suda Liu and a top Korean label CJD and M which would sense the highly popular K pop boy band, Seo Base 1.

Speaker 1

All these contract renewals include a 30 day head start pre phase of their new songs. Overall, we are pleased to see that such pre phase has effectively improved the memberships conversion and engagement. 2nd, we continue to explore more engaging ways for users to enjoy music. During the quarter, we combined the proprietary fans' artist interaction benefits such as live video calls with digital album releases and Yitap effectively increases sales. The new digital album of a popular Chinese singer, Zosun is a recent success.

Speaker 1

It features artists' film in app declarations and virtual souvenirs and exceeded 1,000,000 copies in sales within 3 months of release, ranking as the top seller year to date on our platform. We have also seen solid digital album sales results from other artists such as Chinese singer Lei Zhang, Zhang Yixing and the popular K Pop girl group aespa. 3rd, as the demand for offline live performances continues to surge, we stepped up our efforts to host concerts and music festivals with more value added services. In July, we host our upgraded flagship annual event TMEA Tencent Music Entertainment Awards 2024 in Macau. We brought into our horizons this time featuring A listed domestic singers and rising musicians as well as international idols.

Speaker 1

Notably, over 60 households' names including Joseon, Tianwei, Yuan Yawei, Jin Zhang, Zhang Lang Ying and the K Pop girl group, Baby Monster performed at this year's event. TMBA 2024 Sparked 1,000,000,000 of social media buzz showcasing our elevated industry influence. We are also bolstering our capabilities to organize large scale concerts for top note singers. For instance, we hosted Tierra's landmark concert tour and helped her all achieve a milestone of over 10,000 attending fans. We are happy to see a significant year over year growth in our revenues from offline performances in the 2nd quarter.

Speaker 1

This quarter has a new initiative. We customized the event themed artist merchandise for Karen Mox, Mo Wen Hui, concerts we have had started sales on our platform. We also provide our subscribers with member only access to the online premier concerts of a popular Chinese band, Teens in Times, as remarkable benefits. 4th, our self produced content continue to win popularity and boost user conversion. We strategically leveraged our extensive resources, effort advantage in TV, films, IDs and artists to elevate production, promotion and success of our self produced content.

Speaker 1

For example, we invited popular artists, Joseon, Tianjin Wu, Wu Geqing and Bicker to form the original soundtracks for Tencent Video's blockbuster TV series, Sword of Life 2, Jin Yun and Dear Jin and The Tale of Growth, Gui Gu Shu. These self produced songs amassed over 200,000,000 streams in total on our platform within 3 months of debut, ranking top 3 on OSD charts year to date. In addition, our self produced the pop songs, Heard of You, King Suomi, and Who Am I, went viral on short video platform soon after being featured on the national music variety show, The Treasure The Boys season 5, which significantly boosted streams on our platform. Our high quality original content, combined with unique fan artist interactions, fulfills diverse music taste and entertainment needs, fostering an increasingly dynamic content ecosystem. We always strive to inspire society and share our love for music.

Speaker 1

In the Q2, we jointly launched another Lit 2 Redfowl Concerts with Kensington Charity, partnering with volunteer artists and teachers to support the local education for children in rural avenues through online and offline performances. We amplified its online reach and social influence this time by deeply collaborating with Weixin Video accounts to live stream the concerts. In summary, we record a solid second quarter performance, finishing the first half of the year on a strong note, both operationally and financially. We believe the power of our platform, the value of premium music content and expanding members' privileges will have a snowball effect, leading to a healthy and sustainable growth. Guided by a long term view, our goal is to lay a strong solid foundation for future progress and to promote the right win win development of the industry.

Speaker 1

Now I would like to turn the call over to Ross for more details on our overall platform development. Ross, please go ahead. Thank you.

Speaker 2

Thank you, Ka Chun. Hello, everyone. Our focus on user centric innovation has effectively increased music subscribers and enhanced retention during this quarter. This reflected our ongoing efforts to advance our product and services, especially the focus on the high value subscription plan, the Super VIP membership. Our approach to continuously delight users keeps us at the forefront of the streaming industry.

Speaker 2

A few quarterly highlights to share. 1st, we further enhanced sound quality and the effects as part of our premium offerings. For example, QQ Music upgraded its self developed audio 3d20, and the Google Music UltraSound, featuring ultra clear sound quality. We also presented users with new ways to enjoy the music, including sound quality for certain high end headphones and the playlist with best in class audio quality. This improvements highlight to not only higher user adoption, but also increased music consumption.

Speaker 2

2nd, to meet users' personalized needs, we have launched a series of benefits, including customized players and the ringtones based on well known IPs and artists. These features resonate with users' desire for self expression and improved effective in user commission and retention. 3rd, our premium SVIP membership is gaining more traction, employing a holistic and seamless listening experience across various devices and multiple scenarios. SVIP integrates music with long form audio and online car working services, always superior sound quality. It wins the hearts of our higher active members with comprehensive online and offline privileges, such as priority access to digital albums and the ticket booking for live music events, including our TMEA.

Speaker 2

We are pleased with the early progress of SVIP membership adoption and are looking forward to sharing more exciting news down the road. Next, a more personalized music discovery and optimized listening experiences. A few key projects to spotlight. We upgraded our recommendation midwire across our music apps, enabling users to discover songs better, better clarity to their test. During the quarter, nearly 40% of streams were generated from recommendations.

Speaker 2

With our evolving large audio models, we continue to import more efficient music distribution and discovery of new and long tail content. We also animated our platform's overall experience with AIGC applications. For example, we introduced a data saving AI enhanced SQLite mode, Wusheng Shengliomoshi, while preserving superior sound quality and Kugomussic virtual DJ filters and QQ Music 3 d Avata offer users a sense of companionship. On the visual side, we refined our streaming UI design to offer a more inviting and effortless experience. For example, QQ Music launched an industry first multi device matching playback feature and a compact hot screen music player.

Speaker 2

User can now enjoy seamless music streaming when switching across different devices and applications. Last but not least, we further expanded our rewards program to include more benefits, such as artist merchandise. Its growing popularity among users has effectively boosted music content consumption and increased user engagement. To sum up, all the above efforts contributed to a high stickiness on our platform as reflected by both year over year and quarter over quarter increases in time spent per user in the 2nd quarter. Moving forward, we are committed to offering more compelling services that better align with needs of diverse music lovers, ultimately expand our paying user base and increasing user loyalty.

Speaker 2

With that, I would like to turn the call over to Shirley, our CFO, for a deep dive into our financials.

Speaker 3

Thank you, Ross, and greetings to everyone. I will now turn to our financial results. Our in the Q2 of 2024. And non IFRS net profit rose by 26% to RMB2 billion. Our total revenues were RMB 7,200,000,000 down by 2% year over year Revenues from online mail service had strong growth largely offsetting the decline in revenues from social entertainment and other services in the Q2 of 2024 our online mix revenues increased by 28% to RMB 5,400,000,000 on a year over year basis.

Speaker 3

This increase was driven by the strong expansion of our music subscription revenues supplemented by growth in advertising revenues as well as growth in revenues from offline performances. Music Subscription revenues in the Q2 of 2024 reached RMB 3,700,000,000 marking a 29% increase year over year and a 3% rise sequentially. Monthly AR PPU was 10.7, up from 9.7 in the same period last year. The number of online milk paying users were 117,000,000, representing a 18% increase year over year with quarterly net adds of 3,500,000 paying users with a large scale of music subscribers. Our focus is to manage music subscription revenue growth with the right balance and peace to achieve growth in both subscribers and the monthly ARPGPU.

Speaker 3

Our enriched content offerings and enhanced the member privileges such as QQ Music Introducing Audio 3D 2 and Kugo Music Rolling out to wipe out ultrasound have made our products more attractive and improve the user stickiness and our SYP membership program is our strategy to focus operationally and will lead to ARPPU improvement in the long run. Advertising revenues also had a strong year over year growth primarily due to the growth in AD supported advertising. We provided more attractive interactive features to our users which helped improving interest rate for our ad supported advertising. Promotions for the 6/18 Mid Year Shopping Festival also contributed to increase advertising revenues. Moreover, our interactive rewards program opened new avenues for commercialization in advertising for our users.

Speaker 3

Additionally, we continued to innovate and diversify our product offerings and advertising formats while deepening the integration of brand sponsorships with our offline performances. Social entertainment services and other revenues were RMB1.7 billion, down by 43% year over year. We will continually monitor market conditions, the competitive landscape, regulatory environment and our product futures for social entertainment services. Our gross margin for Q2 reached 42%, marking an increase of 7.7 percentage points year over year due to the following factors. First, the expansion in paying user base and improved monthly ARPPU for online music as well as increased advertising revenues had a favorable impact on our gross margin.

Speaker 3

2nd, we have been focused on RC as a key metric to manage our costs. 3rd, the ramping up of our own content continue to help improve our gross margin. Lastly, we have enhanced monetization of recent membership and advertising within social entertainment, which positively impact our gross margin. All above factors have collectively enabled us to move to a healthy margin. Moving on to operating expenses, in the Q2 of 2024, they amounted to RMB1.1 billion representing 16% of our total revenues compared with 17.2% in the same period of last year.

Speaker 3

Selling and marketing expenses were RMB210 1,000,000 and remained relatively stable comparing with the same period of last year. We continue to maintain our focused approach for promotion expenses and we will continue to invest in areas such as online music with a long term growth perspective as well as in content promotions. General and administrative expenses were RMB 938,000,000 down by 10% year over year primarily driven by lower employee related expenses. Our effective tax rate for Q2 was 19.4% compared to 12.2% in the same period of 2023. This increase was primarily attributable to the accrual of withholding tax of RMB 111,000,000 related to the earnings to be remitted by our PIC subsidiaries to offer show entities.

Speaker 3

Additionally, changes in preferential tax rates for certain entities also impact our effective tax rate. For Q2 2024, our net profit and net profit attributable to equity holders of the company were RMB1.8 billion and RMB1.7 billion respectively. Non IFRS net profit and the non IFRS net profit attributable to equity holders of the company were RMB2 1,000,000,000 and RMB1.9 billion, respectively. Our diluted earnings per ADS reached a record high this quarter at RMB 1.07, up 30% year over year. Non IFRS diluted earnings per ADS increased to RMB 1.19 up 23% year over year.

Speaker 3

This results underscored our robust financial performance enhanced operating basis and the beneficial impact of our share repurchase program as discussed during Q1 2024 earnings call, we declared a new cash dividend for the fiscal year 2023 in May and have made a payment of U. S. Dollar 212,000,000 in June 2024 As of June 30, 2024, our combined balance of cash, cash equivalents, term deposits and short term investment were RMB 35,000,000,000 as compared with RMB 34,200,000,000 as of March 31, 2024. This combined balance was also affected by changes in the exchange rate of RMB to USD at different balance should dates. Looking forward, we will continue to focus on high quality growth in our music business, such as expanding SVIP membership as well as operating efficiency improvement.

Speaker 3

We will continue to invest in high quality content, original content production as well as innovative technologies to further improve user engagement and enhance user experience. This concludes our prepared remarks. We are now ready to take your questions.

Operator

Thank you, If you are dialing in by phone, please press 5 to ask a question and then press 6 to unmute yourself. If you are accessing the call from the Tencent meeting or Meeting application, please click the raise button at the bottom left. For the benefit of all participants on today's call, please limit yourself to one question and then if you have additional one, please re enter. Thank you. If you ask questions in Chinese, please can we ask you to repeat in English?

Operator

And the first question comes from the line of Citigroup, Alicia. Alicia, please go ahead. Hi.

Speaker 4

Thank you. So good evening management. Thanks for taking my questions. Congrats on the solid results. I'm going to ask in Chinese first, then I translate myself.

Speaker 4

So can management share with us and discuss the second half this year second half twenty twenty four outlook for the top line growth profitability trend and also the online music growth rate. Will the net add or AR PPU to be the more important growth driver? Thank you.

Speaker 1

Okay. Thank you so much, Alicia, for your questions. And our view and outlook for the year 2024 actually remains unchanged, which means that we are expecting to achieve a healthy and positive revenue and profit growth this year. For the online music businesses, as mentioned that we have over 10,000,000 net subscriber adds in the first half of twenty twenty four and also the AR PPU has reached RMB 10.7 up from RMB 9.7 in the same quarter last year, which laid a very good foundation for us. And we are confident that our online music growth will continue to be solid, fueled by both of the Net S and also the ARPPU expansion.

Speaker 1

So over the past few quarters, our Net S comes in much better than expected, primarily due to the accelerated increase of the paid content and also the effective marketing strategies. So as the pace of the Net S will turn to a normal level and grow in a steadier pace, we will be more focusing on growing the AR PPU, which is expected to have a faster growth than the Net S. One of the good news that we are pleased to seeing that our Envista Privileges and Holistic Service offerings have started to gain more popularity among our existing users. So our SVIP plan has very good momentum and which give us confidence on the AR PPU growth in the future. So as a result, in the near term, I think that the net asset in the second half of twenty twenty four will be smaller compared to the first half, but the AR PPU will expand at a more noticeable pace moving into the 2025, which helped to further improve our margin as well.

Speaker 1

In terms of advertising revenue, I think it's expected to have a good performance in the coming quarters due to growth in the ad support advertisement and also the sponsorships of the offline event etcetera. For the social entertainment side, we expect to have continuous challenges from the competition, macro and other factors. But with this contribution to our total revenue becomes much smaller, impact will be largely offset by the solid growth from online music business. So in terms of the profitability, our strategy is to focus on the high quality growth in profiling effective and proven to be effective, and we are now expected a slightly better full year net profit than the previous forecasted.

Operator

Thank you. And the next question comes from Lincoln Kung from Goldman Sachs. Lincoln, please.

Speaker 5

Thank you, management, for taking my question and congrats on a solid quarter. I just want to follow-up in terms of the upward and net adds. In the IR PPU, I think, Kathleen, you mentioned we will have a more meaningful increase into the second half. So could management just elaborate a bit more on in what way we would plan to do that in terms of price hike, promotion reduction or and can we elaborate a bit more in terms of the Super VIP progress or at the high value added service here? What kind of magnitude of the increase should we expect in ARPU?

Speaker 5

And would that result in any sort of a higher attrition of the members because of this increase amid this overall weak backdrop? Thank you.

Speaker 6

Thank you very much. Thank you for your question. And yes, indeed, I think the key driver of the future RF growth in H2 of this year truly rests with the SVIP plan we are going to launch. In the SVIP plan, besides providing the content privilege, we also hope that we're going to offer other privilege, providing higher value to our members. Are talking about the key drivers of SVIP Business.

Speaker 6

There are 3 points. The first point is that our existing digital album business allows SVIP to enjoy the start to head listening privilege. This can allow us to engage the high value customers. If our SVIP customer, they'd like to hear certain music ahead of the start, that would be a great contribution to the value of the members. Well, my second point is that for those high value customer who have the IPs, they also pursue higher and better sound quality and sound effect.

Speaker 6

And we can also see that from our actual operational data, they also have a very high adoption rate for the high quality sound and high quality sound effect. This is also what we are going to do in the near future, continue to upgrade the sound quality and sound effect. Well, from the application Well, from the application perspective, in H1 of this year, we launched Dolby Audits, and we also launched the Audio 3 d 2.0. And in July, we just launched DTS. All those very primary sound quality will help to further contribute value to our SVIP members.

Speaker 6

But at the same time, regarding the content creation for SVIP, we make sure they can enjoy the long form audio content in their existing privilege. We provide them the premier service. In other words, they can enjoy the seamless listening experience from device to device. In other words, for SVIP on TME platform, they can enjoy the muted content, the long form video, and also enjoy the seamless listening experience from device to device. I can say that for SVIP, the membership fees is around RMB 40 per month and which is actually allow us to have more room to provide better benefits and more experience to the SAP compared with normal subscribers.

Speaker 6

But at the same time, for our paying users, they are still the majority of our user base. We're going to continue to refine the content and the operation and making sure they're going to have a steady growth within PowerUp. I believe in next quarter's earnings call, we're going to share with you more data and more strategies within SVIP.

Operator

Thank you. And the next question comes from Alice Poon, Morgan Stanley. Alex, please.

Speaker 7

My question is related to Super VIP. How should we think about the penetration as a percentage of total paying user, the trajectory in the coming few years? Thank you very much.

Speaker 6

Thank you very much. Thanks for the question. And I have to say that for SVIP, and because as I mentioned in the previous answer, because we ever upgrade the sound quality, the sound effect along with other drivers, we will be able to maintain a relatively fast growth of the SVIP members, where at the same time, I have to say we start SVIP almost from 0. So till now, we see the growth is pretty satisfactory, but I think we still need to give some time till we disclose further information to you. What I can share with you is that SVIP, the growth is still in line with our expectation.

Speaker 6

We'll look into the future, As you just mentioned, those used to be 8 RMB per month user has already been converted into Google user and QQ Music paying user, and they are now majority of our user base. This is what we see now. We're looking forward to the next 10 years, or in the very long term, I think maybe SVIP will be our future driver of the growth trajectory.

Operator

We hope Okay. The next question comes from Zhang Lei from Bank of America Merrill Lynch. Lei, please.

Speaker 8

Thank you, management, for taking my question and congrats on a solid quarter. I want to follow-up on membership net add trend is 3,000,000 per quarter you hold since we entered a steady growth stage? And how to look at our long term paying user penetration? Thank you.

Speaker 6

Thank you very much. Thanks for your question. And I think Carson has already shared in his remarks. And when we look into the graph, we hope that in the near future, the growth would be much better than what we have on Nat 8. But to be sure, in H1 of ACM, after a few holidays, as we see, the up end net 8 school growth.

Speaker 6

But in H2 of this year, we're still going to maintain a very solid growth. And from the operational strategy perspective, we still would like to maintain a good growth of Arab. We will naturally grow the net adds. But the most important thing we have to keep in mind is always the revenue and the profit. We do hope that the revenue and the profit, as we discussed with all of you, would hit our full year target.

Speaker 6

If we will be able to do so, then we will be able to continue to grow our subscriber base in a quality approach. Then you can expect what the result might be. Well, from the operational strategy perspective, I think we have already made it very clear. We would like to maintain a steady growth of our user base. Besides paying attention to the net adds, we should also pay attention to the user retention because only by having the high quality growth of the subscriber, we will be able to maintain a very strong retention of our high quality subscribers.

Speaker 6

That will help us to further grow our business substantially. Regarding the subscriber penetration rate, we still would like to maintain what we used to promise to the market. And we also have confidence that we're going to hit our mid- and long term subscriber number. Regarding H2 of this year, what we're trying to do is that besides growing our subscriber base, we will also continue to intensify the sales and the promotion strategy, making sure we will be able to engage new customers and then to grow our subscriber base even higher. And this is also what I mentioned.

Speaker 6

In the long term, we are still very confident to hit our subscriber number and hope we will be able to honor our commitment to the market. Thank you. The next question comes from Wei Xiong from UBS. Xiong, please.

Speaker 8

My question is about our profitability and margin trends. Just wondering could management share, how should we think about the pace of gross margin expansion in the second half this year and next year? And what's the level of the gross margin level that we might be achieving in the medium term? For the net margin, how should we think about any further room for cost optimization as well as the net margin trend going forward? Thank you.

Speaker 6

You can see the gross margin and the net margin of the company continued to grow for the past 9 quarters consecutively. So, overall speaking, we are still very confident we are going to have a good performance on the GP margin and the net margin. Regarding the growth of the GP margin, on one side, from the revenue perspective, you continue to see the subscription business and the advertising business, the revenue continue to grow. But at the same time, in the near future, if our SVIP program could be well executed, it's also going to be another positive contribution to our GP margin. Another point is that from the cost perspective, we continue to be committed in the music industry and we made a heavy investment in the industry.

Speaker 6

We also maintained very close cooperation with the copyright holder, where we can say that those substantial investments will yield with very fruitful results. We also did the RFC management over the copyright and IP continue to improve the utilization rate and efficacy. I said pointing that the contribution from our self produced content continued to grow, which will also positively benefit our GP margin. A first point, even if we see a slight decrease on the social business, but still our wasting advertisement as well as the membership number continue to grow, which will also benefit the overall GP margin. We're specifically talking about the operational cost.

Speaker 6

If we take a look at the sales expense, you can see that for the past few quarters, we will be quite self disciplined and well managed in sales expenses, which also show very good result. At the same time, we foresee for the market expenses for the year and the total contribution from the market expenses to the revenue would maintain the same as what we saw last year. First specifically, if we take a look at the G and A expenses, if you take a look at the H1 performance of this year, you can see still we registered a small decline compared with last year. We will continue to improve our operational efficiency and the expenses management efficiency. In other words, for this year, we believe the G and A expenses ratio to the total revenue would be lower than what we saw last year.

Speaker 6

So overall speaking, we believe no matter for the GP margin or the net margin, we're going to have a good improvement compared with what we saw last year. But at the same time, the net profit and the net profit margin, the growth would be better than the JP margin. In the longer run, as our online music business continue to grow steadily and positively, we also have every confidence to the future growth of the GP margin and the

Operator

Thank you. And the last question comes from Thomas Chong from Jefferies. Thomas, please.

Speaker 9

Hi, good evening. Thanks management for taking my question. My question is about macro headwinds. Given that we have been seeing macro uncertainties these days, how should we think about the impact to our different business segments, subscription, advertising and social entertainment. And my second question is about competition.

Speaker 9

Are we actually seeing any changes in the competitive landscape? Thank you.

Speaker 1

Okay. I'll take the first question regarding the macro environment. Thanks for speaking. The downturn in the macro environment definitely will bring some challenges to different aspects of the business. But I think that for the TME's online music business is frankly speaking is a really value for the money.

Speaker 1

So which is frankly speaking is a really relatively low cost entertainment that is very affordable to all users. So you can seeing that of the subscription business for us, the online music, what do not have very much impact by the macro environment. In terms of the advertising, we are also doing a great job in the few quarters. Even though some of the advertisers may have some impact in spending on the advertising dollars, But we are seeing that we are still doing a good job, especially in some of the sectors that is related to, for example, tourists and also related to some of our offline concerts sponsorships. So I think that advertising besides the sponsorships, we're also doing some of the new formats of advertising as well, so which can help us to further grow our advertising business in a very good momentum.

Speaker 1

So I think that the overall macro environment do not have such a big impact to GME and still we have a very confidence for the long term healthy growth of our business.

Speaker 6

Respond to your second question regarding the online music, especially the competition landscape, I think everyone's been clear. We still have the players or those players we usually say in this market. Well, regarding the competition, you can see that for this year, it marks our 8th anniversary of starting the business. So our focus is still to do our right business, to do the business right. We are still going to follow our strategy of having the content and the platform at the same time.

Speaker 6

So we firmly believe as long as we continue to improve our content and improve our competition, our capacity, while at the same time further refine and optimize the user experience. We're still going to keep our position in this market.

Operator

Okay. Since there are no further questions in the queue, I would like to wrap up the call. Thank you everyone for joining us today. And if you have any further questions, please feel free to reach our IR team. And this concludes today's call.

Operator

And thank you very much again and look forward to speaking to you next quarter. Thank you and goodbye.

Speaker 1

Thank you. Goodbye.

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Earnings Conference Call
Tencent Music Entertainment Group Q2 2024
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