The child of the Chinese multinational conglomerate holding company Tencent, Tencent Music Entertainment (TME), released its Q2 figures, and the markets were impressed.
For the second quarter of 2020, TME posted revenues of 6.93 billion Yuan ($997 million) – an 18% increase from the figures posted same time last year. The net income payable to shareholders went up 1.3% from last year's figures to 939 million Yuan ($135 million).
The user-base rose 52% to 47.1 million, marking the fastest quarterly increase on record for the company.
The increase was due to the partnerships signed with international and local music labels. Just yesterday, TME extended its partnership with Universal Music Group.
While TME was on a roll, Tencent Holdings Ltd proposed a deal to create a new Chinese game streaming platform by merging DouYu International Holdings with Huya Inc. According to Tencent, the new platform could rival Amazon Twitch. Moreover, if the deal comes through, WeChat would be able to dominate the $3.4 billion Chinese live-stream market.
Despite the success that the two companies had lately, some investors fear that the US would start delisting more Chinese companies. Their fear was fueled by the US Treasury Secretary Steven Mnuchin, who announced that Chinese companies would be delisted from the US stock exchanges by the end of 2021 if they don't comply with the US Securities and Exchange Commission rules.
During the Hong Kong trading session, shares of Tencent rose 3.19%, while those of TME added 2.4%.
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Sources: investing.com, reuters.com
