Aug. 11 at 1:28 PM
$TME
TQ2 — market may be missing the bigger picture 📈
Headline revenue growth of 5.8% may not look spectacular, but dig underneath and the picture is much more encouraging.
🎵 Music revenue +11%
👥 Membership revenue +8.1%
💰 Adjusted net profit +4.4%
💵
$6.5bn cash & investments
🔄
$400M of shares repurchased in Q2
🚀 Ximalaya already contributing, with further integration benefits to come
The legacy social entertainment business continues to decline, but TME is steadily transitioning towards a stronger, more recurring music and subscription-led model.
The market may be disappointed by the headline numbers, but I see a highly profitable business with a huge cash position, aggressive buybacks and solid underlying growth.
Sometimes the best opportunities are when the market focuses on the headline and ignores what's happening underneath.
Still bullish on TME. 🎧📊
Bargain grabbing time?
