FILE PHOTO: Tencent Music Entertainment celebrates the company’s IPO at the New York Stock Exchange (NYSE) in New York, U.S., December 12, 2018. REUTERS/Bryan R Smith
(Reuters) – China’s Tencent Music Entertainment Group (TME.N) missed Wall Street estimates for quarterly revenue on Monday as the coronavirus crisis impacted the company’s social entertainment services business, sending its shares down more than 3% in extended trade.
Monthly average revenue per paying user from its social entertainment services fell 12.9% to 111.1 yuan ($15.65). It reported 256 million users for the segment during the quarter, a rise of 13.3% from a year earlier.
“While acknowledging the impact on our social entertainment services from the COVID-19 pandemic, we have started to see a moderate recovery recently,” Chief Executive Officer Cussion Pang said in a statement.
Paid users of the company’s online music service jumped 50.4% to 42.7 million in the quarter.
Revenue of the company, controlled by Chinese tech giant Tencent Holdings Ltd (0700.HK), rose about 10% to 6.31 billion yuan ($889.08 million) in the first quarter ended March 31, while analysts were expecting 6.33 billion yuan, according to IBES data from Refinitiv.
Excluding items, the company reported a profit of 0.66 yuan per American depository share (ADS), above estimates of 0.63 yuan per ADS.
Reporting by Akanksha Rana in Bengaluru and Pei Li; Editing by Shailesh Kuber