Tencent Music Entertainment Group shares fell 9% after the company reported second-quarter results that beat estimates, as investors focused on slowing growth in parts of the business. Revenue rose 5.8% year over year to RMB8.93 billion, or $1.32 billion, about $20 million above consensus, while non-IFRS diluted earnings per ADS reached $0.25, beating expectations by $0.01. Music-related services revenue grew 11% to RMB7.61 billion, with membership revenue up 8.1% to RMB4.79 billion, but social entertainment services and other revenue dropped 16.4% to RMB1.33 billion. Operating expenses climbed 12%, pushing the expense ratio to 14.5% from 13.7% a year earlier, and adjusted EBITDA rose 5.2% to RMB3.25 billion.
Tencent Music Entertainment GroupShares fell 9% despite beating Q2 estimates, as investors focused on slowing growth in social entertainment services and rising expenses.
