Tencent Music Entertainment Group (Tencent Music Entertainment Group) Gross Margin % : 38.31% (As of Dec. 2023)

View and export this data going back to 2018. Start your Free Trial

What is Tencent Music Entertainment Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tencent Music Entertainment Group's Gross Profit for the three months ended in Dec. 2023 was $370 Mil. Tencent Music Entertainment Group's Revenue for the three months ended in Dec. 2023 was $965 Mil. Therefore, Tencent Music Entertainment Group's Gross Margin % for the quarter that ended in Dec. 2023 was 38.31%.

Warning Sign:

Tencent Music Entertainment Group gross margin has been in long-term decline. The average rate of decline per year is -2.2%.

The historical rank and industry rank for Tencent Music Entertainment Group's Gross Margin % or its related term are showing as below:

TME' s Gross Margin % Range Over the Past 10 Years
Min: 28.25 Med: 33.01 Max: 38.33
Current: 35.27

During the past 8 years, the highest Gross Margin % of Tencent Music Entertainment Group was 38.33%. The lowest was 28.25%. And the median was 33.01%.

TME's Gross Margin % is ranked worse than
78.93% of 522 companies
in the Interactive Media industry
Industry Median: 60.98 vs TME: 35.27

Tencent Music Entertainment Group had a gross margin of 38.31% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Tencent Music Entertainment Group was -2.20% per year.

Tencent Music Entertainment Group Gross Margin % Historical Data

The historical data trend for Tencent Music Entertainment Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tencent Music Entertainment Group Gross Margin % Chart

Tencent Music Entertainment Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

34.10

31.91

30.10

30.96

35.29

Tencent Music Entertainment Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															32.96	33.05	34.27	35.65	38.31

Competitive Comparison of Tencent Music Entertainment Group's Gross Margin %

For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Tencent Music Entertainment Group's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tencent Music Entertainment Group's Gross Margin % falls into.

Tencent Music Entertainment Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Tencent Music Entertainment Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1371.8	/	3886.726
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3886.726 - 2514.916)	/	3886.726
	=	35.29 %

Tencent Music Entertainment Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	369.9	/	965.379
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(965.379 - 595.501)	/	965.379
	=	38.31 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Tencent Music Entertainment Group (NYSE:TME) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Tencent Music Entertainment Group had a gross margin of 38.31% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Tencent Music Entertainment Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Tencent Music Entertainment Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Tencent Music Entertainment Group (Tencent Music Entertainment Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Tencent Music Entertainment Group (NYSE:TME) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

01698:Hong Kong 0A2Z:UK 63TA:Germany

Address

Kexing Science Park, Kejizhongsan Avenue, Unit 3, Building D, Hi-Tech Park, Nanshan District, Shenzhen, CHN, 518057

Website

https://www.tencentmusic.com

TME is the largest online music service provider in China. It was founded in 2016 with the business combination of QQ Music (founded in 2005), Kuwo Music (founded in 2005) and Kugou Music (founded in 2004) streaming platforms. Tencent is the largest shareholder of TME with over 50% shares and over 90% voting rights held. TME also provides social entertainment services, including music live audio/video broadcasts and online concert services through the three platforms mentioned above, and online karaoke through an independent platform WeSing.