China’s Tencent Music Entertainment Group surpassed quarterly revenue estimates on Monday as a slate of original content and pandemic-driven lockdowns helped its Spotify-like music streaming platform attract more paying users, reports Reuters.
The company’s U.S. shares rose 3% in extended trading after it said online music paying users jumped by a quarter to 82.7 million amid a lack of social events due to strict stay-at-home orders in China. Music subscription revenue rose 18%.
The company also benefited from a push for original content, including a partnership with Tencent Holdings to produce songs from popular game titles. However, there were signs that stiff competition and an economic slowdown sparked by Beijing’s zero-COVID policy were weighing on Tencent Music’s business.