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Upturn AI SWOT - About
TME 
Tencent Music Entertainment Group (TME)
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Upturn Advisory Summary
04/01/2025: TME (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 48.02% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 24.11B USD | Price to earnings Ratio 24.93 | 1Y Target Price 16.4 |
Price to earnings Ratio 24.93 | 1Y Target Price 16.4 | ||
Volume (30-day avg) 9665317 | Beta 0.69 | 52 Weeks Range 9.41 - 15.63 | Updated Date 04/1/2025 |
52 Weeks Range 9.41 - 15.63 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 1.25% | Basic EPS (TTM) 0.58 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 23.39% | Operating Margin (TTM) 28.08% |
Management Effectiveness
Return on Assets (TTM) 5.66% | Return on Equity (TTM) 11.2% |
Valuation
Trailing PE 24.93 | Forward PE 18.25 | Enterprise Value 23018233856 | Price to Sales(TTM) 0.88 |
Enterprise Value 23018233856 | Price to Sales(TTM) 0.88 | ||
Enterprise Value to Revenue 6.06 | Enterprise Value to EBITDA 19.55 | Shares Outstanding 857148992 | Shares Floating 1115555573 |
Shares Outstanding 857148992 | Shares Floating 1115555573 | ||
Percent Insiders - | Percent Institutions 58.13 |
Analyst Ratings
Rating 4.48 | Target Price 14.43 | Buy 7 | Strong Buy 18 |
Buy 7 | Strong Buy 18 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Tencent Music Entertainment Group
Company Overview
History and Background
Tencent Music Entertainment Group (TME) was established in 2016 as a spin-off from Tencent Holdings. It was founded to consolidate Tencent's music streaming businesses. It publicly listed on the NYSE in 2018.
Core Business Areas
- Online Music Services: Provides music streaming through platforms like QQ Music, Kugou Music, and Kuwo Music, offering subscription services, ad-supported free streaming, and music downloads.
- Social Entertainment Services: Includes live streaming platforms (WeSing) and karaoke features, allowing users to create and share music-related content.
Leadership and Structure
The key leaders include Cussion Pang (Executive Chairman) and Ross Liang (CEO). The structure consists of business units focused on specific music platforms and entertainment services, overseen by executive management.
Top Products and Market Share
Key Offerings
- QQ Music: A music streaming platform with a vast library of songs, personalized playlists, and social features. Competitors include NetEase Cloud Music and Spotify (in certain markets). No specific US Market Share Data available. Revenue is generated through subscriptions and ads.
- Kugou Music: Another popular music streaming platform known for its extensive music library and user-friendly interface. Competitors include NetEase Cloud Music and Spotify (in certain markets). No specific US Market Share Data available. Revenue is generated through subscriptions and ads.
- Kuwo Music: A music streaming platform focusing on high-quality audio and personalized recommendations. Competitors include NetEase Cloud Music and Spotify (in certain markets). No specific US Market Share Data available. Revenue is generated through subscriptions and ads.
- WeSing: A karaoke app with social features, allowing users to record and share their performances. Competitors include Smule and Yokee. No specific US Market Share Data available. Revenue is generated through virtual gifting and subscriptions.
Market Dynamics
Industry Overview
The music streaming industry is experiencing rapid growth, driven by increasing smartphone penetration, rising internet usage, and the shift from physical music sales to digital streaming. The industry is highly competitive, with major players vying for market share.
Positioning
TME is a leading player in the Chinese online music market. Its competitive advantage lies in its large user base, extensive music library, strong relationships with record labels, and integrated ecosystem within Tencent's platforms.
Total Addressable Market (TAM)
The global music streaming market is expected to reach hundreds of billions of dollars in the coming years. TME is positioned to capture a significant share of the Asian market, but struggles to gain a foothold in the US due to lack of brand awareness and popularity compared to US apps.
Upturn SWOT Analysis
Strengths
- Large user base
- Extensive music library
- Strong relationships with record labels
- Integrated ecosystem within Tencent's platforms
- Dominant position in the Chinese music market
Weaknesses
- Limited international presence outside of Asia
- Dependence on licensing agreements
- Competition from other streaming platforms
- Exposure to regulatory risks in China
- Concerns of copyright compliance in overseas markets
Opportunities
- Expanding into new international markets
- Developing new music-related products and services
- Leveraging AI and other technologies to enhance user experience
- Forging strategic partnerships with other companies
- Growth in mobile advertising spend
Threats
- Increasing competition from other streaming platforms
- Changing consumer preferences
- Piracy and copyright infringement
- Regulatory changes in China
- Economic downturns
Competitors and Market Share
Key Competitors
- Spotify (SPOT)
- Sirius XM (SIRI)
- iHeartMedia (IHRT)
Competitive Landscape
TME faces intense competition from other streaming platforms, including global giants like Spotify and local players. TME's advantage lies in its local expertise and strong relationships with record labels in China. Its disadvantage in the US is mainly from a lack of recognition compared to the other competitors above.
Major Acquisitions
Lazy Audio
- Year: 2021
- Acquisition Price (USD millions): 417
- Strategic Rationale: To expand its audio content offerings and strengthen its position in the online audio market.
Growth Trajectory and Initiatives
Historical Growth: Tencent Music Entertainment Group has experienced significant growth in revenue and user base over the past few years, driven by the increasing popularity of music streaming and social entertainment services. Specific figures unavailable.
Future Projections: Analysts predict continued growth for Tencent Music Entertainment Group, driven by the increasing adoption of digital music and the company's expansion into new markets. Specific numerical projections unavailable.
Recent Initiatives: Recent initiatives include expanding its music library, enhancing its social entertainment features, and strengthening its partnerships with record labels.
Summary
Tencent Music Entertainment Group is a strong player in the Chinese music streaming market, boasting a large user base and extensive music library. However, its international presence is limited and it faces increasing competition. While recent initiatives show promise, the company needs to navigate regulatory risks and changing consumer preferences to sustain its growth trajectory.
Similar Companies
IHRT
iHeartMedia Inc Class A
IHRT
iHeartMedia Inc Class A
SIRI
Sirius XM Holding Inc
SIRI
Sirius XM Holding Inc
SPOT
Spotify Technology SA
SPOT
Spotify Technology SA
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Market Research Reports
- Analyst Estimates
- Public News Sources
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions can change rapidly, and investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Tencent Music Entertainment Group
Exchange NYSE | Headquaters - | ||
IPO Launch date 2018-12-12 | CEO & Director Mr. Zhu Liang | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees - | Website https://www.tencentmusic.com |
Full time employees - | Website https://www.tencentmusic.com | ||
Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform. In addition, it sells music-related merchandise; and artist-related merchandise, such as branded apparel, posters and art prints, and accessories and integrated and technology-driven music solutions that help IoT device manufacturers build and operate their branded music services on their IoT devices, as well as offers advertising services across its online karaoke platform and online music apps. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
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