Tencent Music Entertainment Group (NYSE:TME) Q3 2023 Earnings Call Transcript

So actually, regarding the strategies for the in-car business, we are going to keep a very good relationship with auto OEMs and including the domestic auto OEM and even Tesla. We are going to make sure our content could be well provided into their driver in the cockpit. Well, at the same time, that’s still for us, will lead the way regarding the sound quality and also the sound effect. So, we really want to make sure we continue with our high-quality sound quality and sound effect in the in-car service. And we also have our indigenous technology regarding the primary sound quality and also the 2D sound effect, making sure the users, when they are in their car, they can also enjoy the high-quality service from us. Well, for the past 2 years, we are also clearly in the case that – up from the absolute value perspective, the in-car service is better than the mobile and service.

While, at the same time, we also noticed that what we are doing now is to trying to expand the user base for the in-car service. When we grow our customer base to a certain number, we are going to leverage more commercial activities and strategies to turn them into the paying user.

Operator: Due to the interest of time, we take the last question from Wei Xiong from UBS. Wei Xiong, please.

Wei Xiong: Thank you management for taking my question and congrats on a good quarter. My question is around shareholder returns, so good to see the execution of buyback program in the past quarter. Looking ahead, how should we think about the pace of buyback? And what factors do we consider in determining the timing and maybe the pace of the buyback execution? And also what are the ways do we think about to drive better shareholder returns? Thank you.

Shirley Hu: Thank you very much. In Q1 of this year, we have announced $500 million share repurchase program for repurchasing the Class A ordinary shares. As of September 30, 2023, we made cash repurchases of approximately 50.8 million ADS in the open market for a total consideration of nearly $103 million. We will continue to keep an eye on the market, especially the latest market trends and also capture opportunities to create more values for our shareholders. By keeping our eye on the market, we will also consider further repurchase program if the time and the opportunity arise.

Operator: Okay. With that, I will turn the call over to Kar Shun for closing remarks.

Kar Shun Pang: Thank you everyone for joining us today. If you have any further questions, please feel free to contact TME’s IR team. And this concludes today’s call, and we look forward to speaking with you again next quarter. Thank you so much and goodbye.

Shirley Hu: Thank you.

Ross Liang: Thank you.