T. H. Data Flash – Tencent Music – August & 3Q19E: Better Acceptance Of Pay-For-Streaming Driving TME’s Better Performance in 3Q19E
We are positive on TME’s 3Q19 performance. This is the first time since its IPO that we believe the company is likely to outperform instead of missing consensus expectation. The better result is driven by: 1) more paid songs under the Online Music Services line as more popular songs are VIP songs. As such, we also expect the paying ratio for online music services to improve; 2) user growth for its live broadcasting is encouraging.