The Chinese music streaming company’s music subscription revenue soared as its social entertainment revenue sagged.
Revenue fell 6% to $29.4 million in the streaming company's fiscal third quarter ended Dec. 31, though nine-month revenue was up 8.7%.
Also, big releases from ATEEZ and Tyler, the Creator help bolster the third quarter earnings for the second-biggest major music company.
To help boost shareholder returns, the K-pop company's board of directors agreed to retire the remaining 2% of treasury shares.
Total quarterly income, recorded music and streaming income fell, but cost-cuts freed up money to invest in A&R and buy Tempo's music catalog.
The dominant streaming platform in Western music markets said 2024 was its first full year of profitability.
Declines in subscriber and advertising revenue in 2024 reinforce the company's pivot away from streaming and towards a focus on core in-car listeners.
CEO Robert Kyncl discussed higher wholesale prices for DSPs, Elliot Grainge and the 10K team's "intensity," and putting money to work in A&R.
Digital and streaming revenues drive overall revenue growth.
This year's quarterly results have shown improvements in margin and profitability without sacrificing subscriber growth.
