Tencent (TME) Loses 8% on Lower PT

In a market note, Macquarie reduced its price target for Tencent Music Entertainment Group (NYSE:TME) to $28.30 from $29.80 previously, but maintained its “outperform” rating on the stock. Still, the figure marks a 49 percent upside from its latest closing price.

The revision followed the Tencent Music Entertainment Group’s (NYSE:TME) earnings performance in the third quarter of the year, with net income attributable to shareholders jumping 32 percent to 2.4 billion yuan from 1.814 billion yuan in the same period last year.

Revenues increased by 20.6 percent to 8.463 billion yuan from 7.015 billion yuan year-on-year, primarily due to a strong 27 percent growth in revenues from online music services in the same period.

“In the third quarter, we delivered another set of solid results, underpinned by the well-rounded performance of our online music business. Our ongoing innovations in content enrichment, services expansion to include more live experiences, continued to fuel consistent subscription revenue growth while boosting momentum in non-subscription services, especially in concerts and artist merchandise,” said Tencent Music Entertainment Group (NYSE:TME) Executive Chairman Cussion Pang.

Image by photosforyou from Pixabay

“Backed by our strong financial position and operational excellence, we are poised to further broaden our music services and create greater value for the entire music industry,” he added.

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Disclosure: None. This article is originally published at Insider Monkey.