Tencent Music Entertainment topped analysts’ estimates for quarterly revenue on Tuesday with its second straight quarter of growth as strong demand for its streaming service helped the company bounce back after a year-long slowdown.
For the three months through December, its revenue rose 8.2% from a year earlier to 7.46 billion yuan ($1.03 billion), above analysts’ average estimate of 7.30 billion yuan, according to data compiled by LSEG.
The US-listed shares of the company were up 3% in premarket trading.
Tencent Music’s premium Super VIP (SVIP) membership, which combines long-form audio content, online karaoke services and high-quality sound, has gained significant traction among users.
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However, the social entertainment unit continues to weigh on overall growth due to the removal of certain live-streaming features to comply with Beijing’s anti-gambling regulations.
For the fourth quarter, revenue from the social entertainment services business, which includes karaoke app WeSing and live concert platform Kuwo Music, was 1.63 billion yuan, down from 1.87 billion yuan a year ago.
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