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    Roger Cheung • Barclays

    Roger Cheung's questions to Tencent Music Entertainment Group (TME) leadership

    Roger Cheung's questions to Tencent Music Entertainment Group (TME) leadership • Q2 2025

    Question

    Roger Cheung from Barclays asked about operating expenses and leverage, noting that bottom-line growth has outpaced top-line growth and questioning if this trend of cost efficiency would continue.

    Answer

    Management explained that while they will continue to invest in content promotion, traffic acquisition, and R&D, they are committed to financial discipline. They anticipate the absolute value of operating expenses will grow from the 2024 baseline but will ensure that expense growth remains slower than revenue growth. This strategy is designed to preserve operating leverage and allow for continued net profit growth.

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    Roger Cheung's questions to Tencent Music Entertainment Group (TME) leadership • Q2 2025

    Question

    An analyst from Barclays, likely Roger Cheung, asked about operating expenses and whether the trend of bottom-line growth outpacing top-line growth would continue, given cost controls.

    Answer

    A moderator for management explained that while they will continue to invest in content promotion, channel acquisition, and R&D, they are committed to financial discipline. They expect the absolute value of operating expenses to grow from the 2024 baseline but will ensure that expense growth remains slower than revenue growth, thereby preserving operating leverage and allowing for continued net profit growth.

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    Roger Cheung's questions to Tencent Music Entertainment Group (TME) leadership • Q1 2025

    Question

    An analyst from Barclays inquired about TME's international opportunities, with a specific focus on Southeast Asia, and asked if this region would be a key area for investment.

    Answer

    An executive confirmed that the international market is a crucial part of TME's overall strategy. They noted good performance in Southeast Asia and plan to continue investing in the region by building out the platform, developing the local content ecosystem, engaging in content creation, and pursuing offline performance opportunities.

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