Tencent Music Entertainment Shares Pop Premarket After Clocking Over $1B Revenue; Updates On Hong Kong Listing

Tencent (HK:0700) Music Entertainment Group (NYSE: TME) reported third-quarter revenue growth of 5.6% year-on-year to $1.04 billion, missing the consensus of $1.23 billion.
Revenues from online music services increased by 18.8% Y/Y to $482 million, driven by solid growth in music subscription revenues. ARPPU remained stable.
Revenues from social entertainment services and others decreased by 20.0% Y/Y to $553 million. ARPPU increased by 8.2% Y/Y while paying users of social entertainment services decreased by 26.0% Y/Y.
Gross margin expanded by 300 bps to 32.6%.
Non-GAAP EPS of $0.12 beat the consensus of $0.07.
Tencent held $3.58 billion in cash and equivalents.
Cussion Pang, Executive Chairman, said, “Furthermore, completing our listing on the Main Board of The Stock Exchange of Hong Kong, in addition to our primary listing on the NYSE, demonstrates our commitment to protecting long-term value for shareholders.”
Price Action: TME shares traded higher by 12.36% at $5.00 in the premarket on the last check Tuesday