China's Tencent Music Entertainment Group missed Wall Street estimates for quarterly revenue on Monday as the COVID-19 pandemic impacted the company's social entertainment services business, sending its shares down 4.5per cent in extended trade.
Unlike peers such as Spotify Technology SA , which is also a stakeholder in Tencent Music, the company generates only a fraction of revenue from music subscription packages, and instead relies heavily on services popular in China such as online karaoke and live streaming.
The music streaming service had warned in March that it would likely see"much softer" revenue growth in the first quarter due to the coronavirus crisis.AdvertisementSpotify's paid music subscribers surged to 130 million in the first quarter, as its business model proved more resilient than expected amid the coronavirus lockdowns.
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