Tencent Music Entertainment Group financial statements

Income statement, balance sheet and cash flow statement for the last 9 fiscal years, taken from the XBRL data Tencent Music Entertainment Group files with the SEC in its annual reports.

In CNY millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2018	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
Revenue	4,361	10,981	18,985	25,434	29,153	31,244	28,339	27,752	28,401
Cost of revenue	3,129	7,171	11,708	16,761	19,851	21,840	19,566	17,957	16,376
Gross profit	1,232	3,810	7,277	8,673	9,302	9,404	8,773	9,795	12,025
Research and development	449	797	937	1,159	1,667	2,339	2,580	2,525	2,280
Operating income	103	1,593	2,039	4,622	4,710	3,800	4,443	6,059	8,710
Interest expense			35	64	97	121	108	141	94
Pre-tax income	114	1,597	2,003	4,540	4,632	3,632	4,373	6,045	8,712
Income tax	29	278	171	563	456	417	534	825	1,603
Net income to minority interests	3	-7	-1	-5	21	186	162	300	465
Net income	82	1,326	1,833	3,982	4,155	3,029	3,677	4,920	6,644

Balance sheet

	FY2016	FY2018	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
Cash and equivalents	3,071	5,174	17,356	15,426	11,128	6,591	9,555	13,567	13,164
Inventory		30	35	26	18	24	14	8	23
Total current assets		7,467	20,778	26,914	31,687	26,791	26,559	29,936	34,544
Property, plant and equipment	108	127	168	179	176	243	323	490	803
Lease right-of-use assets			100	148	311	283	398	367	295
Goodwill	15,762	16,262	17,088	17,140	17,492	19,121	19,493	19,542	19,647
Intangible assets	2,007	1,717	1,763	1,622	2,020	2,829	2,368	2,032	2,049
Total assets		30,000	44,605	52,678	68,273	67,254	67,009	75,536	90,444
Accounts payable		1,045	1,830	2,559	3,565	4,329	4,998	5,006	6,879
Total current liabilities		3,527	6,238	8,490	9,602	10,450	11,717	12,014	16,550
Lease liabilities				78	218	205	306	297	219
Total liabilities		3,852	6,833	9,000	15,542	16,199	17,882	18,334	20,718
Total debt					5,175	5,062	5,536	5,636
Retained earnings		1,227	3,040	7,007	11,111	14,194	12,052	16,969	20,051
Shareholders' equity		26,141	37,721	43,590	52,245	50,317	48,099	55,907	67,863
Minority interests		7	51	88	486	738	1,028	1,295	1,863
Total equity	20,634	26,148	37,772	43,678	52,731	51,055	49,127	57,202	69,726
Total liabilities and equity		30,000	44,605	52,678	68,273	67,254	67,009	75,536	90,444

Cash flow statement

	FY2016	FY2018	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
Net income	85	1,319	1,832	3,977	4,176	3,215	3,839	5,220	7,109
Cash from operations	873	2,500	5,632	6,200	4,885	5,239	7,481	7,337	10,275
Capital expenditures	-41	-75	-132	-95	-108	-159	-85	-165	-319
Cash from investing	496	-483	-1,190	-8,102	-14,206	-5,999	-1,446	-1,863	-6,818
Debt issued					10
Stock issued	1,901		2,433	12
Share buybacks					-134	-3,479	-3,127	-1,249	-1,925
Dividends paid						0	0		-1,508
Cash from financing	1,712	99	7,741	-31	5,292	-3,710	-3,419	-1,538	-3,830
Exchange rate effect	-10	-13	-1	3	-269	-67	348	76	-30
Free cash flow	832	2,425	5,500	6,105	4,777	5,080	7,396	7,172	9,956
Income taxes paid	67	207	221	564	637	589	733	825	1,355

Key metrics

Worked out from the statements above. Latest values use fiscal 2024. No valuation: the share price is quoted in a different currency than the statements.

Profitability

Metric	Value	How it is calculated
Gross margin	42.3%	Gross profit / revenue.
Operating margin	30.7%	Operating income / revenue.
Pre-tax margin	30.7%	Pre-tax income / revenue.
Net margin	23.4%	Net income / revenue.
FCF margin	35.1%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	36.2%	Cash from operations / revenue.
Effective tax rate	18.4%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	10.7%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	8.0%	Net income / average total assets.
Return on invested capital (ROIC)	13.8%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	8.0%	Research and development expense / revenue.
Capex / revenue	1.1%	Capital expenditures / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	2.3%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	-3.1%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	2.2%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	22.8%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	8.5%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	6.8%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	43.8%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	31.8%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating income CAGR, 5y	13.5%	Compound annual growth of operating income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	35.0%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	29.9%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	10.8%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	40.0%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	25.2%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	10.6%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	38.8%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	25.1%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	10.3%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	21.4%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	10.5%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	9.3%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	19.7%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	10.4%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	11.4%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	2.09x	Current assets / current liabilities.
Quick ratio	0.80x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.80x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	22.9%	Total liabilities / total assets.
Interest coverage	92.7x	Operating income / interest expense.
Working capital	CN¥17.99B	Current assets - current liabilities.
Goodwill and intangibles / assets	24.0%	(Goodwill + intangible assets) / total assets.
Tangible book value	CN¥46.17B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.34x	Revenue / average total assets.
Fixed asset turnover	43.9x	Revenue / average property, plant and equipment.
Inventory turnover	1,057x	Cost of revenue / average inventory.
Days inventory	0 days	365 x average inventory / cost of revenue.
Days payables	132 days	365 x average accounts payable / cost of revenue.
FCF conversion	149.8%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	3.1%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
Payout ratio	22.7%	Dividends paid / net income, when net income is positive.
Dividends / FCF	15.1%	Dividends paid / free cash flow, when free cash flow is positive.
Buybacks / FCF	19.3%	Share buybacks / free cash flow, when free cash flow is positive.

What was Tencent Music Entertainment Group's revenue in fiscal 2024?

Tencent Music Entertainment Group reported revenue of CN¥28.40B for fiscal 2024, 2.3% higher than the year before.

Was Tencent Music Entertainment Group profitable in fiscal 2024?

Yes. Net income was CN¥6.64B, a net margin of 23.4%.

How much free cash flow did Tencent Music Entertainment Group generate in fiscal 2024?

Cash from operations of CN¥10.28B minus capital expenditures of CN¥319.0M left free cash flow of CN¥9.96B.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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