(Reuters) – China’s Tencent Music Entertainment Group beat market estimates for quarterly revenue on Monday as the Spotify-like music streaming platform benefited from a jump in paying users.
Stay-at-home orders imposed to stem a recent surge in Chinese COVID-19 cases have shut the door on social events, prompting consumers to turn to the company’s karaoke app WeSing and live concert platform Kuwo Music for entertainment.
A push for more original content to fend off competition from rivals Cloud Music and Bytedance-owned short-video sharing platform Douyin has also drawn users to Tencent Music’s platform.
Total revenue was 6.91 billion yuan ($1.02 billion) in the second quarter ended June 30, compared with the 6.62 billion yuan expected by analysts, according to Refinitiv IBES data.
Net income attributable to equity holders of the company rose to 856 million yuan, from 827 million yuan a year earlier.
($1 = 6.7715 Chinese yuan renminbi)
(Reporting by Tiyashi Datta in Bengaluru; Editing by Aditya Soni)