Credit: 123rf

Tencent Music Entertainment (TME) has again recorded a quarterly drop in revenue but a boost to its profits, with a 3.4% earnings drop to RMB 6.77 billion ($937 million) and a 23.9% net profit increase to RMB 1.42 billion in the first three months of this year. This marks the third straight quarter of declining revenues for the Chinese entertainment giant. Revenue from social entertainment services, including livestreaming, slumped by nearly half to RMB 1.76 billion from a year prior, which in turn largely drove the cost of revenues to decrease by 14.8%. The company recorded 113.5 million paid users during the period, a 6.8 million boost in membership that it said was its “largest quarter-over-quarter net increase to date.” In its earnings filing, TME also mentioned it has introduced AI large audio models with the aim of increasing the accuracy of the music promoted to users. [TME]