Citigroup: Expects Tencent Music's third-quarter performance to meet expectations and maintains a "buy" rating

Golden Ten Data on October 16, Citi issued a report pointing out that Tencent Music (TME.N) is expected to disclose its third-quarter results in the week of November 11, and the results may be consistent with market expectations. The bank expects Tencent Music's total revenue in the third quarter to rise by 7% year-on-year to RMB7 billion, in line with market expectations. Adjusted net profit is expected to be RMB1.89 billion, with a margin of 27%, slightly below the consensus of RMB1.91 billion. Looking ahead to the fourth quarter, the bank expects Tencent Music's revenue to rise 5% year-on-year to RMB7.23 billion, while online music revenue is forecast to rise 16%, but this is offset by a 25% drop in social entertainment revenue. The bank's revenue and earnings forecasts for Tencent Music remain unchanged, and it maintains a "buy" rating on Tencent Music with a price target of $15.