Here's Why Tencent Music Entertainment Shares Are Rising

Tencent Music Entertainment Group - ADR TME shares are trading higher by 10.0% at $5.11 after the company reported better-than-expected fourth-quarter EPS results. The positive price action could also be related to strength in Chinese stocks and Alibaba Group Holding Ltd - ADR BABA for the session.

Tencent Music Entertainment reported quarterly earnings of 8 cents per share which beat the analyst consensus estimate of 7 cents. The company reported quarterly sales of $1.19 billion which missed the analyst consensus estimate of $1.23 billion by 3%. This is a 7% decrease over sales of $1.28 billion in the same period last year.

Tencent Music Entertainment highlighted that online music paying users reached 76.2 million, increasing by 36.1% year-over-year. The company says, on a sequential basis, the number of online music paying users grew by 5.0 million. Paying ratio was 12.4%, up from 11.2% in the third quarter of this year and 9.0% in the fourth quarter of last year.

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Tencent Music Entertainment is an online music entertainment platform in China. Its platform comprises online music, online karaoke and music-centric live streaming services, supported by content offerings, technology and data.

Tencent Music Entertainment has a 52-week high of $32.25 and a 52-week low of $2.95.