07:25 AM EDT, 03/18/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Tencent Music Entertainment ( TME ) reported strong Q4 2024 results, with revenue growth driven by an 18% Y/Y increase in music subscription revenues and EPS beating our forecast and consensus. Paying users grew 13.4% Y/Y to 121M, while net profit surged 47.3% Y/Y alongside significant gross margin expansion to 43.6% from 38.3%. The company announced an expanded $1B share repurchase program and its first annual dividend of $0.18 per ADS, supported by a robust cash position of CNY37.58B. Management is focusing on AI-powered personalization, content diversification, and in-car music experiences as key growth drivers. We believe TME's strategic initiatives in premium offerings and enhanced AI integration will support ARPPU growth in 2025, while the shift away from social entertainment should reduce revenue volatility. We expect continued monetization improvements to reinforce TME's market leadership.