Tencent Music Files for IPO
China's largest music tech company is ready for Wall Street. Tencent Music Entertainment Group (TME), whose services include QQ Music, Kugou and Kuwo, filed its F-1 form to the Securities and Exchange Commission on Tuesday, requesting to trade under the symbol TME on either the New York Stock Exchange or NASDAQ.
TME has grown rapidly in the last year, according to financial figures in the filing, with first-half revenue of 8,619 million yuan ($1.3 billion) compared to 4,485 million yuan ($653 million) in the same period in 2017. Gross profit during the first half rose 151 percent compared to last year, to 3,478 million yuan ($526 million).
In addition to digital music services QQ, Kugou and Kuwo, TME operates the popular karaoke app WeSing. "With over 800 million total unique MAUs in the second quarter of 2018, our massive user base covers the full spectrum of user demographics in China," the company said. "Our users are highly engaged, with each daily active user on average spending over 70 minutes per day on our platform in the second quarter of 2018."
Tencent Music competes in China with streaming services operated by Netease Inc. and Baidu.com Inc. The company, headquartered in the southern city of Shenzhen, boasts of having China's most comprehensive music library, with over 20 million tracks licensed from 200-plus domestic and international music labels, such as Sony Music, Universal Music, Warner Music, and China Record Group Co., Ltd.
Tencent Holdings has a 58 percent stake in TME, while Spotify took 9.1 percent following a stock swap late last year.