Q4 2024 Tencent Music Entertainment Group Earnings Call
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We are pleased to say that our Iot youll space recall D. This steady growth with a year over year on the call. Her alcorta inquiries says in the third and fourth quarter.
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Speaker Change: May also integrating a deep sea into our AI assistance common perfections recommendation page on the either Yolasa touch points.
Speaker Change: This allow users to easily oxides interesting music information Resales song Commons in diverse styles and they enjoy a more personal for the lives that music is prs.
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Speaker Change: Great lines of what you will find the community that are impulse users Tau expressed their failings for artists and the music.
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Speaker Change: Enable your thirst for personalized profiles designed communities and are engaged in Marty user synchronizes screen sharing on the wise tied.
Speaker Change: At the highest segmented as a bond between artist under their falloff.
Speaker Change: Driving user engagement and the ecosystem Marta.
Speaker Change: The mortality.
Speaker Change: Notable example in the fourth quarter include a virtual communities of GSA T onion soup and the teams in time should iPhone implant Mis Theyre funds fund base growing significantly since the launch.
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Speaker Change: If I could tell you we are unable to buy Tyler's core ratio abroad.
Speaker Change: Building audience.
Speaker Change: Increasing adoption of <unk>.
Speaker Change: Our users on a bronze connections.
Speaker Change: And our intent contributed strongly to a lot of our testing revenue growth in the first quarter.
Speaker Change: All together.
Speaker Change: Oh, kruif progressively redefined as a music experience for our users and our guru or ecosystem into us timing hump formula equation promotion and consumption.
Speaker Change: As we look a hiatal tools all of them the under plenty to quantifying may well continue to embrace AI technologies to empower the innovation.
Speaker Change: Always the goal of creating the most the bulava elaborate music platform for all of our users on the creator.
Charlie: My side I would like us would tend to call or to Charlie our CFO for a deep down into our financials.
Speaker Change: Cynthia Ross and greetings to everyone.
Speaker Change: Net mean locked into our financial results in the fourth quarter of 2024 hour. In fact, two monetization of online music services and operational efficient management continued to drive with robust financial results.
Ladies jumped performance in our music subscription and advertising business revenue continued its growth trajectory and achieved an 8% to get older English clubs.
Speaker Change: <unk> net profit increased by 47% year over year try and be too climbed a beaming and non bank net profit rose by 46%, we haven't really yet to Anthony to counterparty risk.
Speaker Change: Smacking the highest quarterly profit in our keeps turtle.
Speaker Change: Total revenues in the fourth quarter of 2024 were RMB, seven 5 billion up by 8% year over year.
Speaker Change: Online music revenues increased by 16% year over year to RMB five 8 billion.
Speaker Change: The increase was mainly driven by sustained growth of our music subscription revenue from.
Speaker Change: Supplemented by growth in but what housing revenues.
Speaker Change: Millions of subscription revenue in the fourth quarter of 2024 reached RMB 4 billion.
Speaker Change: Presenting an 18% increase year over year, and a 5% rise sequentially.
Speaker Change: Monthly ops was M. B E Ylang clung to one compared with RMB 10 point a statement in the same period of last year.
Speaker Change: The number of online music paying users.
Speaker Change: 121, meaning they are presenting.
Speaker Change: 13% increase year over year with quarterly net ads through meetings also.
Speaker Change: We have made good progress in our Soi team membership program driven by both expansion of comprehensive user privileges.
Speaker Change: Including enhanced the audio quality and effects and expanded digital album memory, and a close and benefits for online concert.
Speaker Change: Okay.
Speaker Change: And with housing revenues also achieved a strong year over year growth, primarily due to the growth in a be support in water revenues.
Speaker Change: They continued to optimize our product offering and a passing comment.
Speaker Change: Things taxing of attractive and active field trial and enrich the benefits book is the entrance agreed for our Adas the poteet advertising.
Speaker Change: Enhancing the user engagement and ESPN and attracted a great number of ties us this quarter.
Speaker Change: Social and 10 minutes services and other revenues were RMB, one 6 billion down by <unk>.
Speaker Change: 13% year over year, we continue to innovate and develop the neocortex and eight active build trust plus nausea and terminate the services.
Speaker Change: Our gross margin for Q4 reached 40 say pointed take potential representing an increase of 5.3 concentrated points year over year.
Speaker Change: Travel by several factor.
Speaker Change: After the robust growth of our subscription revenue, including advantaged membership either.
Speaker Change: Advertising revenues in both online music and social and chemists and wasting membership spoke heavily impacting our gross margin.
Speaker Change: Second the scaling of our own content further improved our gross margin.
Speaker Change: Third as the continuous to be a key metric in managing our continental royalty costs.
Speaker Change: Finally for social and 10 minutes demand base that declined in January showing clean outpaced a slight decrease in revenues.
Speaker Change: Moving onto operating commencing in the fourth quarter of 2024, they amounted to RMB, one pointed to a beating representing 15.7% of our total revenues.
Speaker Change: Compared with 18, 4% in S N period of last year.
Speaker Change: Selling and marketing expenses were RMB, 290, and 48, mainly down by 3% year over year.
Speaker Change: We will maintain our hour I focused approach or promotion expenses that acting will estimate toward areas with long term growth perspective, such as animal Rick and accountant promotion.
Speaker Change: General and administrative expenses were RMB 926 million down by 8% year over year, primarily driven by lower employee related expenses.
Speaker Change: The finance cost in the first quarter upon it plentiful reflected an unrealized foreign exchange gain.
Speaker Change: Rising from senior management at the Kimpton, which was largely affected by Black Asian uptick attention rate, reaching RMB and aggressively as of September 30, and December 31st 2000 and titanfall.
Speaker Change: Our effective tax rate for Q4.
Speaker Change: 74.
Speaker Change: 29%.
Speaker Change: Compare that with them it employment tecogen in a time period of 2023.
Speaker Change: They accrued withholding tax of RMB 100, and a term meaning in the fourth quarter of 2000 titanfall.
Speaker Change: In Q4 2020, all our net profit increased by 47% to RMB, two concubine bidding and the net profit attributable to equity holders of the company increased by 50% to RMB 2 billion.
Speaker Change: Office net profit increased by 46% to RMB, two clinical bidding and the non op at net profit attributable to agco dust off the company increased by 45% to RMB two point of sale billing effectiveness.
Speaker Change: Our diluted earnings per ads this quarter was RMB, one pointed to pick up.
Speaker Change: About 32% year over year.
Speaker Change: <unk> dilaudid unethical S equator to RMB, 147, and 47% year over year.
Speaker Change: As a result, underscored our effective monetization and enhanced operating efficiency and advantage from our share repurchase program.
Speaker Change: As of December 31st 2024 hour combined balance of cash cash equivalents empty path and short term investments were RMB 37 points excluding.
Speaker Change: As compared with RMB.
Speaker Change: 36 billion as of September 32012, before this combined balance was also impacted by changes in exchange rates of the amplitude depth with a balance sheet. That's.
Speaker Change: In General 2025 were completed.
Speaker Change: <unk> hundred one mainly share repurchase plan announced in March 2023 of which our progress.
Speaker Change: 100, a meaning what you purchased in the fourth quarter of 2024 today, we're announcing a lot of share repurchase plan to repurchase up to USD 1 billion dollar going up.
Speaker Change: Four months period.
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Baxter: Baxter, our briefly discuss our performance for the full year 2000 and titanfall.
Baxter: Total revenues were RMB 28, appointed papini up by 2% year over year.
Baxter: Revenues from online music services were RMB 21 7 billion.
Baxter: Up by 25% year over year.
The increase was driven by strong growth in mirrored the structuring revenues and revenues from Ottawa tighten policy supplemented by growth in revenues from offline performance page.
Baxter: Music subscription revenues were RMB 15 pointed to billing up by 26% year over year, driven by growth in both media and marketing philosophy.
Revenues from search and 10 minutes away declined by 36% year over year.
Baxter: Gross margin in 2020 before was 42 three.
Baxter: Pervenche occupy seven percentage points year over year due to the reasons discussed earlier.
Baxter: Total operating expenses for 2024 were RMB four pointed them billing.
Baxter: And by 10% year over year.
Baxter: And then passed through potentially in 2020, all while RMP.
Baxter: 0.9 billion down by 4% year over year.
Baxter: General and administrative expenses, while at the same point kind of billings down by 8% year over year, primarily due to lower employee related expenses.
Baxter: In 'twenty 'twenty four we achieved a record high annual net profit of RMB, each Samsung to wound healing at back 36% in our year.
Baxter: Net profit attributable to equity holders of the company was RMB six point effect billing non back not appropriate and that now adds back non COVID-19 are so critical to agriculture of the company was <unk> 8.1 billion and RMB seven point 17, respectively.
Baxter: Finally, I'll conclude with some remarks on our outlook for 2025.
Baxter: Looking ahead, we will focus on driving high quality growth in our mid <unk>, expanding as wacky membership and the growing our advertising business.
Baxter: We will also continue to direct buy our offerings across the municipals Baidu chain.
We will continue to invest in areas such as orange in our content production high quality content and innovative technologies globally.
Baxter: To further boost the user engagement elaborate a user experience and enrich our ecosystem.
Baxter: We remain confident in the Hill's gross cut back both the mute the impact.
Baxter: Naturally our Papa and we remain committed to delivering strong returns for our shareholders.
This concludes our prepared remarks, we are now open for your questions.
Speaker Change: Thank you Shelly if you're dialing in by phone prescript find a quick question and then 610, new yourself, if youre accessing the Columbus basin.
Baxter: Using applications need.
Anthony: Anthony on the button.
Speaker Change: But the benefit of all participants on today's needs can you limit yourself to one question and if you have additional ones need to reenter the queue. If you ask your question has been Chang.
Speaker Change: Please repeat in English and our first question comes from Alicia Yapp from Citigroup Alicia.
Speaker Change: Thank you Melissa.
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Speaker Change: What you're finding is a good evening management. Thanks for taking my questions and I Wonder if management can share some guidance and direction of how we should be thinking about the 2025 gross outlook, especially in terms of the music subscription revenue growth on the net at expectation.
Danny Chung: And the non subscription music revenue, especially on the online advertising growth.
Danny Chung: While as the gross margin and also the net margins trends that we should be expecting for 2025. Thank you.
Danny Chung: Thank you.
Speaker Change: Alicia. Thank you so much for the questions and before we're going to dive into the 20th wanted five Oh look I think it would be good for us to have a quick recap on the key strategy an achievement that we have do we have coming in 2024.
Speaker Change: As I mentioned earlier during today's call I think there are plenty of 24 was a real standout year for us.
Speaker Change: The strong performance of the online music services, which drove the high quality growth of the company and we saw the high O P revenue bowls and looked at margin expansion, which highlights the potential of our rich service offerings as well.
Speaker Change: Our focus on user experience and continuous product and service innovation have been crucial to our success. So this has been evidenced by our balance that expansion in both the subscribers in our base and also the a L. P. P. You over the past few quarters.
Speaker Change: So both of the subscription and other music related businesses, our record of very strong performance in particular, our robust content ecosystem continue to be.
Speaker Change: The cornerstone of our subscription surface and has food at the globe op emerging businesses like the artist merchandise and also concert and both of which saw strong topline growth in 'twenty 'twenty four.
Speaker Change: Secondly, we are also seeing that our innovative we water base their advertising.
And hence the user engagement and enable advertisers to efficiently reach their target audience and optimizing the OE.
Speaker Change: The loss of the law at least I think that our S. VIP services has gained us a deficiency, whereas in the present a recognition from both users and the music industry and driving a higher user stickiness and arpus further demonstrating our strong execution capabilities. So all of this has really laid out very solid.
Speaker Change: Foundation for the future development of our business. So therefore, I think in a nutshell in the year of 2025, we will continue to focus on strengthening our business presence across the music value chain too.
Speaker Change: To offer our users more diverse and engaging music entertainment experiences and we are optimistic about our growth trajectory for the year and continue to expand accelerated topline growth and better margins border at 125, as well and also the online music is expected to achieve a healthy growth.
Speaker Change: And driven by steady increase in paying users and a L. P. P U S.
Speaker Change: And we will continue to explore new business opportunities like the content ecosystem, Iot long form audios and international market as well. Thank you.
Speaker Change: Gross margin is 43.6% in Q4 tiny tiny for increased by five three.
Speaker Change: 3% year over year, and increased 1% quarter over quarter. Our gross margin has been expanding over the past several quarters due to a real key factor.
Speaker Change: The rapid growth of our subscription revenue, including S. Working memberships advertising revenues in both online music and social Entertainment and the racing membership has contributed to gross margin expansion second the scoring of our own content further improved our gross margin at 30.
Speaker Change: We have continued to optimize our content the cost structure and remain focused on improving our seeing our all cost items.
Speaker Change: So first to optimize the live streaming revenue sharing cost a strategy. The lab streaming revenue sharing ratio decreased the decline in revenue sharing fees at a pace that they're crazy enamel streaming revenues looking.
Speaker Change: Looking forward to 2025, we believe the above factors will continue to play an important role in further expanding our gross margin.
Speaker Change: And about the adjustment that pro paint module.
Speaker Change: We will continue to manage our ethane capacity situationally using an hour I based abroad.
Speaker Change: Racing mathematics in milk and content promotion.
Speaker Change: We will continue to focus on technology empowerment, and explore and faster innovation and a new opportunity brought by emerging technologies operating expenses are expected to increase slightly with the operating expense ratio remains flat in 2020 back looking forward to 'twenty.
Speaker Change: Twenty-five assume a stable external environment, we expect our revenue growth to accelerate places room for improvement in both adjusted net profit and margin.
Speaker Change: During the call.
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Speaker Change: I also would add to comment on the advertising business.
Speaker Change: All of our existing advertising business, we have three homes. The first one is attached screen. A second one is a free listening mode I'm watching that but at the same time, we also have that left side.
Speaker Change: Please obey Linus omen in either our own yamauchi, Zaire Bongo Moshe Hall to Chenier Unemotional, Shlomi shop, a woman Jean Jacques Longhaul heightened onshore oilfield Amgen Conestoga.
Speaker Change: Where I believe that he and that in the future, especially in 2025 with our left side motto and unlike Rd model, our model will help to Jayson the BD advertising to achieve a healthy growth.
Speaker Change: Well me a woman cadre of word Guangzhou to Guanajuato, though you embark on the.
Speaker Change: Solvay pinch, allowing you to use automation on bulk water is another one for Gary or Sheathbill venture corner, Colorado, Utah, Geez, what I'm Gonna go auto non dominant golf element or a particular oncologic, Idaho hotel Congo the Yahoo.
Speaker Change: You know Ian Tongren, I'm Goldman borrowing a printout hoarding huddled emotion.
Speaker Change: At the same time, we're also pay much attention to the operation of the advertisers, especially in the local market and the collection of the product market and also setting unlike study and the gold industry. We will continue to engage with advertisers from different industry helped them to further engage now reached to the target arguments here. So that we can work with them.
Speaker Change: To help to establish a good accomplishment model.
Speaker Change: Among our many of these are in our own elm no longer emotional point should all be a lot harder ginger animal woman Zhang She says I want my favorite Anda overshot the other some larger well Mariano Hi, Shneur Pinworm Donegal, Don Conkle Shun sugar, Todd on Bulgaria, No Milan Lugano, So should I read all your hardest Andre.
Speaker Change: So I believe that in the time he quantified our upside Motorola continues to make good progress even is enough spread idea you is starting but it's still by diversifying the format of the business of advertising will continue to improve the stream of the revenue E advertising for housing groups.
Speaker Change: Thank you and our next question comes from Lincoln come from Goldman Sachs and Linker your line's open.
Speaker Change: Sure Glenn Tranches order too in light of course, you can see our signature refrigerant challenge imagery is not what it once you see kind of your high school English for you and what's your outputs required.
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Speaker Change: Jim did you put your own code a little to the Trump on somebody's got to Michelle <unk>.
Speaker Change: Hugo could distribute you got so drunk.
Speaker Change: So thank you for taking my questions.
Speaker Change: On the very strong at 124 result, my question this volatility a balance between subscriber and op gross on a priority here.
Speaker Change: So first of all we have seen a $2 million has seen that fourth quarter should we expect a similar pace of growth side to trains four and five psi per quarter.
Speaker Change: They're for our pool, our house does sort of without use of retention rates for the Super VIP at the moment.
How should we think about who the potential Apple continued growth side through this year. Thank.
Speaker Change: Thank you.
Speaker Change: The total AUM quality at all that we are only in the solid organ Leroy woman I should be analyses in Montana.
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Speaker Change: Primarily on the buyer, who forgone arbiter abra boiler with GGP bought whichever is longer.
Speaker Change: Thank you very much. Thanks for your question as he mentioned earlier West I remain confident on the revenue and profit grounds in time to quantify it.
Speaker Change: But at the same time in my presentation. We're also mentioned about the subscription model and the subscriber with a link that to subscriber number and arpus were continuing to grow.
Speaker Change: Oh me away or two each in the country trade higher shirts, I should've riots one via.
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Speaker Change: They always are normally equate countries countries have Napier hollow until you're waiting on the new image abolish Magellan's had gardella, you got us, Oregon Nunez Undrawn.
Speaker Change: But at the same time, we're also keeping an eye on the potential competitors in the market, where we're keeping an eye on their dynamics, therefore to finance our operational metrics to make sure we have a solid grasp on revenue and profit.
Speaker Change: So I might ask Formula <unk>, hydrogel, Moh woman, which under Donegal, Some gone away Maarten a woman to woman.
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Speaker Change: Regarding the net eight we start with Raptor, Nintendo our ecosystem gross pace because of the Napa for the team of US we still have great advantage on content. This is also a target we hope we could achieve don't want me on shorter and shorter you talked on your insurance with now European Kong, Enerdel, Mcwilliam, Auger arbitrage and halfway or you've got going on and why is it because of all your opportunity.
Speaker Change: The job essentially blooming Gardner Norman's I wonder so there's all menorah high bulk one boy to confound shoes Memorial Fund Sheila Dr. Hold on I heard already got one she hasn't gone.
Speaker Change: But it is worse for our attention that they're seeing gains of items, especially the balance between the subscriber base and in Arpus.
Speaker Change: At the same time, we noticed desktops paper is quite price sensitive, but for our strategy, where we're not sacrificing our entrenched.
Speaker Change: Putting out aggressive low price to gain for the short term grass.
Speaker Change: Italian woman, Shannon, which are to their homes to 180, Harriers Operatory Galata yard Santee Egencia our million dollar highest desire to deliver a higher she automotives you played on average longer let's hydronic arbitrage Donana teetotal EMEA. She want home warm in Suzhou name that high <unk> times in the student.
Speaker Change: EG woman promising not only injury in chartered on showing you going forward in a more telling a woman. She lost on me that you're going to see that generally osha. It all largely on account of that illness and the only one.
Speaker Change: So at the same time, we're also has <unk>.
Speaker Change: Industry, leading AI P. P U but at the same time with your hope that we can continue on Arpus grouse and based on the Arpus grass heavily could be differentiated on the self produced content and product audience and the Asa innovative they introduced some features including the Sun quantity and in fact it to be.
Speaker Change: Privileged features and our competitive edge to continue to leverage the healthy grass and engage more subscribers.
Speaker Change: I'll give you a formula O'connell women Shara harsher development.
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Speaker Change: So regarding the Arpus as you May know King we do have our union advantage on content yourself, but at the same time. We also continue to optimize the user experience and engage the privilege to our users. So for US we have to imagine festival will help for the basic subscription model essentially Nokia.
Speaker Change: Apple pay 15 to 80 RMB per month okay.
Speaker Change: I hope that we can continue to improve our studies.
Speaker Change: The price and Baidu to leave without being able to consolidate <unk> user base by improving arpus for sustained progress. So if you are a woman enrolment alleged journeyman all of either biopsy table, but none of them want me I'm, sorry, Joseph Senior Colorado Mitra I actually wanted to claim a higher juggler somebody will average at all here on behalf of Shawn you treat a woman you got stung Tonga L. P.
Speaker Change: We only got how you should think of them wrong.
Speaker Change: Or secondly, HSN now you also asked about S. E T. In careful 'twenty 'twenty four we're also seeing that for our CIP a matter for the site for the price, we're offering seed upward trending which help us to register a crowds exceeding our expectation. So we don't care, so I hereby adjourn the Italian pin boards.
Speaker Change: They're all injury in Java digital useful rundown area touch one Tom your white collar or mirror image of your Chinese rather on all of your colleague Ocado Michelle we'll.
Speaker Change: So from a user experience perspective, as the I T does provide the long form audio Asmara sound quality and fun effect features they use a variety of Nike because of the privilege, but we'll continue to advance our CIP business.
Speaker Change: So to moderating raw milk, where you're in a more challenging English Italian trolleys wishing God I'll also near the Galway say Oh my assumption for mentor, your where your anger Portola and who also have either union a shortened version of Humira, The Oregon Gen home Yahoo.
Speaker Change: It is also worth mentioning that the time spend on our platform.
Speaker Change: Subscriber and it is.
Speaker Change: I'll, let Kathy at a historical high levels and no matter for the general subscribers or our CIP, but well be able to continue to optimize our operations. So they can more healthy subscribers with us.
Speaker Change: And then next question comes from.
Speaker Change: In some way.
Speaker Change: Your line is open. Please go ahead.
Speaker Change: Oh sure Qantas since you said that you were now Michelle Wayne Shaw, Joseph Cornerstones, Fuji oatmeal conductor on the Yahoo.
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Speaker Change: And we're now showing shattered the gene to the shipyard and chocolate underpin genetic Josh Joshi somebody on the tail question, Jim cleanup I said production was not your oncology.
Speaker Change: A question somebody answered just two.
Speaker Change: Two quick ones.
Speaker Change: I want to teach at translation. Thank you management for taking the question.
Speaker Change: Curious if management can call out any consumer sentiment changes towards discretionary spending such as music and conscious and by the way it used to average.
Speaker Change: Concert ticketing price raised recently is it trending up or trending now.
Speaker Change: Also how is the exception based on your observation so far thank you.
Speaker Change: Thanks, So much for your questions and we have observed is that simply listening to songs online low longer satisfied at the mine of music lovers on music related entertainment.
Speaker Change: They basically will increasingly seek to live in with spear and enjoyment that comes form experience in the live concerts and music festivals.
Speaker Change: Additionally, we are also seeing that fans also want to show their support.
Two the Idose group is chasing official merchandise as well so by attending afterlife shows fans gain a more diverse and in depth understanding of the August which in turn strengthens their fallouts.
Speaker Change: For the actors and encourage more songs listening on our platform as well. So it is going to create a positive cycle for music content consumption, which benefits all parties so over the last.
Speaker Change: Two years I think the music performance industry in China has experienced a robust growth and the willingness of users to span on such events has surged dramatically with pickers for many top tier artist concert and music festivals selling out in seconds, we believe that the music live shows business.
Speaker Change: In China, we will continue to have strong performance and the overall market size and ticket price will remain relatively stable in 2025, but however, I think as more and more live shows are being held users' expectations for the quality of these shows have also increased so the industry has now enter a phase where.
Speaker Change: Only the strongest survive and a weaker left behind so T M. He's committed to team up with the industry, leading partners to organize high quality live performance shows while users.
Speaker Change: Thank you for your questions.
Speaker Change: Okay and then the next question from UBS ambition and your line is open.
Speaker Change: And how that says you're quantifying central with ex U N, which actually yada yada AI family and the agenda in the Gulf with anti F. C. Dollar womens issue that you're talking about AI, you'll need for Tony on transient analog in Hollywood, which yes, Mitch answered, Georgia Armani anthem, the AI for me in the channel hooked up.
Speaker Change: Because really ultra machinery, Hampton, who Laguna unless you have potential anyone wish answer Josh as I mean has the Macau area on AI do you tie would've young user if unmatchable long handle AI to unusual really went on Pan Asia foundry Naniwa gigawatt market, where the AI attached houses at home, who went to the phase out.
Speaker Change: Thank you management for taking my question. My question is regarding our strategy around AI in 25 are there any new products or features that we plan to launch for the new year to drive better user experience.
Speaker Change: And also how should we think about the financial implications of our AI strategy on one hand could we see some help from AI in terms of revenue or margins and on the other hand, how should we think about the maybe the increasing investment around a after this year. Thank you.
Speaker Change: So you own them.
Speaker Change: So anti bot, Washington kilowatt able for our Mem Kenosha boiled hydro the hotelier wanted Shanghai you may be doing more managers, who you. Tom So you want a hydrogen and I wish you all in conjunction La Jolla, ending a T shirt program going with Amaya angiosarcoma, the hurdle moment, Tony onto our hydro Guangzhou, Taiwan or you won't be able to could you move our Myers young and old.
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Speaker Change: Thank you very much. Thanks for the question as I have already mentioned, we won't invest too much on the notch Enbridge model and we're going to use when Yang from Tencent and continue to work with it but yet not translate model, but it is worth mentioning that we are a tax trading company and we do have that large at enbridge module capacity could be a part of our product.
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Speaker Change: Now I'll turn so it isn't that it will be a wash of what Mr. Cereal Omega at home I believe he is a constraint is really meant to repower people take a long long time you don't.
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Speaker Change: Well recent notable change Wednesday in fact, we're probably among the tencent ecosystem to adopt a deep dive into our product and from the actual package. They can see that in kick in music, we do have the AI empowered.
Speaker Change: Can offer the use us more interaction.
Speaker Change: Some people say the longer the audio controller audio you won't hold I don't cannot issued an atmosphere Sunday particular toilets, Anja, you're going to deal with you only got eight I'm not sure that you've got a hold on our function.
Speaker Change: And recently, we also leverage keep safe to understand in the music listening a history of the U S and then to summarize.
Speaker Change: History, and providing a very interesting interactions.
Speaker Change: 20% of our Materialise all machines at <unk> hit a wall. So you sold holiday angle.
Speaker Change: A a frontrunner Guangdong no Nomura young who will answer you the unisource fund how much and I wish him good on Kashi cheer region, while managing through it all of it on holiday selling you the show in Chicago.
Speaker Change: Keepsake I think for the last meeting we already mentioned about our AI Sun cover feature which allow the users to use their own boys six to see the public ourselves with also the commission actually very good feedback they all mature at our home of Hydro one.
Speaker Change: One touch our tornado Aromatize pinworm that our module only Oh my goodness on the more general insurer.
Speaker Change: Sure Sameer y'all fit on all of our Bureau enzymes resolve in Pomona attempting training some using God all of Iraq hung it ought to fit under the Honeywell Genco.
Speaker Change: We're in the near future I think we're going to continue to leverage the capacity and the strength from the marchand bench marked especially on behalf quantity Anthony take longer regarding the sound quality our audience <unk> has already been approved with great popularity in the industry.
Speaker Change: Elements of the the Homoiothermal he knows what he's on the ones who are driving the T. Rowe in Guyana since without high any chance or motor and home warm. The switching that is also just what a year Paul Cooke Volkov you dilute your holiday also in gun, both our voluntary lot of weight on horizontal.
Speaker Change: At the same time, we also leverage larger anchorage model to further improve our tax your audio technology is already the leading technology in our industry and recently, we also have in cutting edge technology to help to build the music blogger and wages are also performing very well regarding the user retention.
Speaker Change: So a woman to vanilla mirror function inside a bunch in promotion. So that you don't cut on the toll road comes a woman's Fuji Tsuji side clearly for me and let me. It's all about Todd on the ears are dominant clearly vomited if at all she is shopping our harvest suddenly the homes that are dominant and clearly it's also done yet horizontal colorado needs. So it wasn't even a more gender side tables.
Speaker Change: Finally, we don't know the tumor movers, if I fail cocomo.
Speaker Change: No way next four years, our funds and investment in the notch analytics model, but at the same time, you know that will notch and great model Infinera interest it actually be quite consuming ambien in Iraq. The reactivity made many MAU manpower investment in accelerating that inference ethanol language model.
Speaker Change: But scale, we have a controllable cost in this regard.
The woman Sheila it is faster if I assume the unions are madora highest should always at Cablevision, we don't shut Ottawa tolerant Woollens Island League. So comments like Heidi on the Liard, Yeah. In fact, all of them or not so I don't know where they may want to use way.
Speaker Change: <unk> either stable or in little rock.
Speaker Change: Thank you if we identify some new applications left are continue to impact <unk>.
Speaker Change: Well the manpower for the market and click model the facilities or the R&D, we will continue to improve our investments.
Speaker Change: Okay.
Alex Yao: And our next question comes from J P Morgan Alex Yao.
Speaker Change: Uh huh.
Speaker Change: Tony Sanchez or would've chewing on what's going on with <unk>.
Speaker Change: Furniture talk Sanjay social entertainment, so among Pandora jewelry the spa.
Amit: Amit you were shown on some jobs.
Amit: Ill montage answers or J&J to Joe Shan Shan Shan European Roma.
Amit: Was unchanged collinson angle balm in tier two tier doors.
Jonathan: And Jonathan.
Amit: Therefore that should only.
Amit: Being efficient machinery, a woman Shandong Guizhou chunks and are we seeing.
Amit: One of the diebold send them our way.
Amit: Okay.
Amit: Shoulder the Tricia to.
Amit: Georgia quicker, though the T J <unk>, Jr, founder social and determination.
Amit: All women Chongqing.
Amit: Are you seeing jobs.
Speaker Change: Sure tangible Washington dollar edition, the one dealer jumped random Ashish you shared at Gucci to machine Ducks and it'll hold on generation source.
Speaker Change: Meanwhile, onshore team judging Jacob monitoring common suggestion to Joe Shan Shan Stealen Crusher accretion, Doug EG could shape now what was your furniture.
Speaker Change: Central measure and for taking the question I have a question with regard to.
Speaker Change: The sequential revenue growth for social entertainment.
Speaker Change: Anton has been on a sequential declining trend for many many years.
Speaker Change: This is actually the first times I think as soon as the past.
Speaker Change: Two or three years does that does.
Speaker Change: We actually see a sequential improvement.
Speaker Change: Could you elaborate the reason behind the sequential growth.
Speaker Change: For social Entertainment revenue is it because we're using the accounts for majority of the settlement revenue. So we've seen will increasingly represents.
Speaker Change: Social entertainment revenue growth.
Speaker Change: Oh look or is it because everything stabilized and such there.
Speaker Change: It is showing.
Speaker Change: Showing a bit of a ceiling.
Speaker Change: Seasonality trend Aida year end event leads to a stronger monetization.
Speaker Change: Monetization any color will be helpful. Thank you.
Speaker Change: So it's really hard to loyal Minnesota on there. So you will not see the suggestion that Tricia you were useful sure nature, you'll suddenly and I suddenly under Colombian Caleb over the so if you could go out often door.
Speaker Change: Thank you very much. Thanks for the question do you think you know our business pretty well, yes. Indeed by the end of this year, we still have some integration, but the fact that each doctor and you can see that we actually benefited more from leasing rather than cooker thermal generator for us where you are at a solid two sandwich xiaomi huge lodging.
Speaker Change: Uh huh.
Speaker Change: So I'm not eager to auto going into the dealer share gain elements should see buyers under its own chip smartphone cases, all account younger Darko kweisui Nowadays Okinawa to the idea.
But I have to say that those factors is actually taking away come out with a pocket here, yes, our key growth products because starting from July and August we have a more stringent combined by then we are at a loss.
So there's a closer towards your own corner, you've got with all the change on their phone and cocoa turbocharged elements on yellow you go Sheila who don't want to get a hold of our voucher should alarm total utility level.
Speaker Change: Starting from Q4 last year, we do notice something that is and cocoa streaming we have a new interactive feature that accuracy, Jay actually and showcase the performance exceeding our expectations, but I didn't even plan shortly the Saudi later, Johnny you don't jokingly ATA adult children about how they go 1000 home and so on.
Speaker Change: So Julien brought along Hong Kong no doubt he will do a deal and selling a home inside so you don't so dealer bottomed out as I said, a bottoming, Ohio Fandango tightly.
Speaker Change: Plus the higher eating the cornea amber.
Speaker Change: It's a feature of the collection just unlike a nice redound manpower and we have also taken a central trending regarding Hong Kong as our asset manager. So it took less fashion collection a feature in the near future will continue to drive a nice training business, perhaps thought he would leave atmosphere not do we are there, okay God, Jamaica, Oman Shanda Johnny.
Speaker Change: Tonys out yourself it onto our soil, so you'll end up where moms arms, how much I like hygiene or you go out even though you've got future.
Speaker Change: But I have to decide accident for wasting indeed, it play a very important around now, especially as I think continue to be stable.
Speaker Change: So as our chairman of Teva.
Speaker Change: Your email sangallo, Guangzhou and level of involvement on the vignettes you loved all apology ago, Thomas without a biopsy at sonoco here nowhere more yeah, Tony I know you got with all our Hearts Johan Thunder the automaton as hard as I can.
Speaker Change: If I'm gonna Sabine Jawad able to answer you about government being afraid of Japan as one of them, which are closely you're gonna be alcoholic Tricia Donadio version that you don't Leila.
Speaker Change: But at the same time horizon and we also have new features such as that the net earnings and also by just a very good result, and VIP membership side continue to see a very healthy crowd at the same time. We also have the sunroom and regionalized training and business continue to be stabilized. That's the key reason why we have.
Speaker Change: Good across momentum became full lofty podiatry Armani antoniou envelope handan, Laura hydrogen got a scenario of high single assets without Eagle a shiver scenario here you will see a lot of Charlotte you've got Tricia EMEA ICL, you're signaling wheelchairs zooming in and be able to tell that on the off highway tumor hot warm <unk> cargo hull quote on the tissue the trunk.
Speaker Change: In late June and got Sunshine.
Speaker Change: Longer hauls, you enable it to be in Asia tangible.
Speaker Change: <unk> hundred 95, according to our overall attachment regarding the social entertainment business is going to be stabilized, but are still likely to have some downward trending because we do face many challenges for this business as I have already next quarter. We're trying to do is to rollout new innovation on leasing and uncle continent.
Speaker Change: Possible downward trending.
Speaker Change: Okay in interest of time within a last question from TICC from shrinking as you're making your line is open.
Oh, sorry go ahead, Sanjay Shah light well intervention should find needs about Patriot, that's now going to toggle switch. It's a combo of lots of I'll call. It seems like what coach is unchanged by Zaha Seaton teams within Tokyo, Shanghai, She shop us on bulk water hauls up with all the Biogen outperform our mentality.
Speaker Change: There are some elite athletes.
Speaker Change: Thanks management for taking my question a question Bob because my allocation.
Speaker Change: Company has a mouthful attached to them and Manuel wrong, sorry to purchase those contracts I saw whatsapp longboard capital allocation thoughts around dividend and the schaeffler Bearishness shall show the way, that's a little arrows showing almost to a check.
Speaker Change: She does it consider to begin with a telecom father, no woman chooses negotiating Neal began some paint Arctic a cultural thing it here a little bit onto the shrinking.
Speaker Change: Thank you very much. Thanks for your question our company business continued progress Anthony and we are also a company with anti cash, though so you'll not quite but aren't going to dig a hole in the changing of the young it is slow.
Speaker Change: They're engaged and how we're going to use the cash for now it would be one of our <unk> priority.
Speaker Change: Then he and I kind of leave me alone liquidity played a closer that she might Anna well mcquay, you'll not towards the Saint Gobain and he said he resolved from a backhaul lanes on the syntax GSO Cookie Hook would you go with that so you'll leave them and quantify them hitting.
Speaker Change: On one side, we're going to find good opportunities at the best timing to impact the future treason opportunity for example, our content and our technology and international business knows and Nancy.
Speaker Change: Delivering sustainable growth for our overall business.
Speaker Change: Finally in our me if we're going to take a chance the gauntlet takeaway, but the mcquade ctrip uhuh local liquid tons outcome to the Janssen popcorn Anglo-catholicism Tijuana.
Speaker Change: We're on the other side, we are going to make any of that is that they tend to the shareholders. We're going to evaluate how can we create move that into the shareholders, including our share repurchase plan and the dividend.
Speaker Change: Craig will go into much of the woman. Thanks, when it goes down she's eating things not that sheet.
Speaker Change: She is a woman Doe eating Antarctica.
Speaker Change: Hi would you want a magnetic off Michael.
Speaker Change: That look into our track record we have already completed two share repurchase programs and we have already own at our commitment as being promised to the market.
Speaker Change: Getting a human to human Guillaume and constantly changing along with me it hurt us this year that they got terrific clinical they've all maintain into exactly what you want so you Cynthia Shimbun Ingalls itchy down the industry make an anchor I got you.
Speaker Change: So based upon our confidence in the company's future operation. We are also going to continue to have that with share repurchase plan. So that's the reason, we also announced a new share repurchase plan with a term of two years and a total that is one being USD.
Bringing.
Speaker Change: Economists from Xinjiang cases, Dae gon Chu with Mannkind thinking to go up.
Speaker Change: So it's all of them all so analytical way quite a Doc who don't do on medical.
Speaker Change: Thank you.
Speaker Change: Regarding the dividend payout and we actually started nausea in may the initial or the fast act in archrock dividend to our shareholders to pay back to the support and care trauma Schaffert exercise.
Speaker Change: They do a political thing in that the Gutenberg I'd actually say it cannot afford me and shouldn't bother you seem not to go into that especially that you got from Honda.
Speaker Change: Let us look in chicken I catches a saturated I think it'll be up looking like a pizza.
Speaker Change: As we continue to grow our operating profit as you may notice from our announcements were also going to have a new dividend payout plan for the new year from the absolute that is us back to the comparator with the private yet there are significant improvement okay. So anymore mcquay.
Speaker Change: Woman does it mean that the qinhuangdao to ethical way lagging the depreciating shunting Lloyds. This year lastly, about Oh don't don't not to go onto Cook went too.
Speaker Change: And according to our operation and our confidence clarity to business. However continued to pay back to the shareholders and thank you for your long term support and care.
Speaker Change: Okay. Thank you Shirley and thank you everyone for joining us today. If you have any further questions. Please feel free to contact our IR team and this concludes today's call and thank you so much and look forward to speaking next quarter.
Speaker Change: Thank you and bye. Thank you so much bye bye.
Speaker Change: Yeah.
Speaker Change: Meeting is over goodbye.