Tencent Music beat analysts’ estimates for Q3 profit due to attempts to boost content attracting increased numbers of paying users to its music streaming platform, reports Reuters. Its online music paying users jumped 37.7% to 71.2 million year-on-year, while it grew by 5 million from Q2.
The results come amid a regulatory crackdown in China on sectors from tech to education and property. The company’s parent, Tencent Holdings, said in August it had ended all exclusive music copyright agreements after regulators barred it from such deals.
Excluding items, Tencent Music earned RMB 0.61 per American Depository Share (ADS), topping estimates of RMB 0.49 per ADS, according to Refinitiv IBES.
“While the online music industry in China is adapting to regulatory changes and facing competition for time spent from short video services, we will continue to differentiate both our online music and social entertainment services and execute our dual engine content-and-platform strategy,” Executive Chairman Cussion Pang said in a statement.