Overview Key strengths Key risks Highly strategic subsidiary of Tencent Holdings Ltd. Stringent regulatory oversight over social entertainment platforms. Largest online music entertainment platform in China. Stiff competition from other entertainment platforms for users and screentime. Minimal leverage with healthy cash flow, especially from the stable music subscription business. Soft consumer sentiment weighs on social entertainment business. A steady growth in paying users and an improving mix of more premium subscription plans should support continued growth in online music revenues. TME is also expanding its subscription plan to include in-car music entertainment and other non-mobile device use cases. This should drive additional growth in paying users over the next two to three years. We forecast TME' growth in online music
