Tencent Music Entertainment (NYSE: TME) shares gained 13.0% in market value last month. The stock rose 3.4% on July 1, which took the returns to 17.3% so far in 2019.
The stock lost significant value in May despite delivering solid quarterly results. The resignation of the company’s CEO didn’t sit well with investors.
The stock has risen 14.0% since June 7, fueled largely by its Online Music Services and Social Media Entertainment segments.
Tencent’s Social Media Entertainment business accounted for 72.0% of its sales in the first quarter. The segment has 225 million monthly active users and ~10.8 million paying users.
Tencent has focused on product innovation to attract and expand its user base. The company’s new feature, called “Grab the Mic,” improved its retention rate. Tencent managed to increase its subscribers by double digits in the first quarter across its business segments.
The increase was driven by content diversification, partnerships with leading music labels, and the discovery of new musicians.
TME shares were listed on the New York Stock Exchange in December 2018.
Source: Market Realist