Tencent Music Entertainment disclosed on Monday that it booked RMB 5.9 billion (USD 859 million) in revenue in the second quarter of this year, up 31% year-on-year.
However, behind the rapid revenue growth lies both sluggish profit and new user growth.
The company generated a net profit of RMB 927 million (USD 135 million), an increase of only 2.5% year-on-year. The number of monthly active users (MAUs) for its online music apps including QQ Music, Kugou Music, and Kuwo Music was 652 million, up 1.2% year-on-year while the MAUs for its social entertainment apps, including online Karaoke platform WeSing, reached 239 million, up 4.8% year-on-year.
Along with the release of its earnings, Tony Yip, chief strategy officer of Tencent Music, said that the company has taken initial steps to explore overseas opportunities by expanding WeSing into Southeast Asian countries.
Zhou Wenjiang, vice general manager of WeSing, revealed on a forum held on July 29 that WeSing was the most downloaded app of its kind on Google Play in the Philippines and was ranked within the top 3 in the past three months in Malaysia, according to online news portal Huanqiu.com.