Tencent Music Entertainment (NYSE:TME) Q1 2024 Earnings Conference Call May 13, 2024 7:00 AM ET
Company Participants
Millicent Tu - Head of Investor Relations
Cussion Kar Shun Pang - Executive Chairman
Zhu Liang - Chief Executive Officer
Min Hu - Chief Financial Officer
Conference Call Participants
Alicia Yap - Citigroup
Alex Poon - Morgan Stanley
Lincoln Kong - Goldman Sachs
Zhang Lei - Bank of America Merrill Lynch
Ellie Jiang - Macquarie
Wei Fang - Mizuho Securities
Thomas Chong - Jefferies
Millicent Tu
Good evening, good morning, and welcome to Tencent Music Entertainment Group's First Quarter 2024 Earnings Conference Call. I'm Millicent Tu, Head of IR. We announced our quarterly financial results today before the US market opened. An earnings release is now available on our IR website and via Newswire services.
Today, you'll hear from Mr. Cussion Pang, our Executive Chairman, and Mr. Ross Liang, our CEO, who will share an overview of our company's strategies and business updates. And then Ms. Shirley Hu, our CFO, will discuss our financial results before we open the call for questions.
Before we continue, I refer you to our Safe Harbor statement in our earnings release, which applies to this call as we'll make forward-looking statements. Please note that the company will discuss non-IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under IFRS in the company's earnings release and filings with the SEC.
At this time, all participants are muted. After management's remarks, there will be a Q&A. And please be advised that today's call is being recorded.
With that, I'm pleased to turn the call over to Cussion, Executive Chairman of TME. Cussion?
Cussion Kar Shun Pang
Thank you, Millicent. Hello, everyone, and thank you for joining our call today. 2024 is off to a great start. Strong execution of our dual engine content and platform strategy is yielding impressive results and pushing vitality industry-wide.
In the first quarter, the number of music paying users increased to 113.5 million, propelling 43% year-over-year growth in online music revenues. Our high quality growth strategy also drove a robust net profit margin expansion.
Subscriber growth in this quarter significantly exceeded our expectations, reaching a quarterly historic high of 6.8 million net adds. What's more, we maintained the ARPPU at a healthy level. Both achievements demonstrate our keen understanding of users' needs and our knack for anticipating and meeting their demands operationally.