(Reuters) – China’s Tencent Music Entertainment Group (TME.N) missed Wall Street estimates for quarterly revenue on Monday as the COVID-19 pandemic impacted the company’s social entertainment services business, sending its shares down 4.5% in extended trade.
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
Unlike peers such as Spotify Technology SA (SPOT.N), which is also a stakeholder in Tencent Music, the company generates only a fraction of revenue from music subscription packages, and instead relies heavily on services popular in China such as online karaoke and live streaming.
Monthly average revenue per paying user from its social entertainment services, which include karaoke platform “WeSing”, “Kugou Live” and “Kuwo Live,” where users can live-stream music performances and concerts, fell 12.9% to 111.1 yuan ($15.65). It reported 256 million…
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