Tencent stock rallies after Q2 results, Roblox misses revenue forecast

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Tencent stock rallies after Q2 results, Roblox misses revenue forecast

 Tencent stock rallies after Q2 results, Roblox misses revenue forecast
Image source: Phongphan,Shutterstock

Highlights

  • Total Revenue of Tencent Music Entertainment Group (NYSE: TME) rose 15.5% YoY in Q2.
  • Roblox Corporation's (NYSE: RBLX) revenue jumped 127% YoY.
  • Shares of Tencent Music (NYSE: TME) rose 3.36% in aftermarket trading.

Tencent Music Entertainment Group (NYSE: TME) and Roblox Corporation (NYSE: RBLX) reported their quarterly earnings on Monday, August 16, after the market closed. Tencent Music and Roblox were among the top companies whose quarterly results were keenly followed by investors today.

Traders waited for Tencent results after Chinese official data showed the pace of the factory output and retail sales dropped in July.

Let's explore here the quarterly results of Tencent and Roblox.

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Tencent Music Entertainment Group (NYSE: TME)

The Shenzhen-based Chinese music streaming company reported revenue of US$1.24 billion in Q2, up 15.5% YoY. Its music subscription revenue surged 36.3% YoY to US$277 million. The number of music paying users rose by 40.6% YoY to 66.2 million. Its net profit was US$135 million, and attributable net profit to equity holders was US$128 million. The Non-IFRS net profit of the firm came in at US$180 million, and attributable non-IFRS net profit to equity holders was US$173 million.

The stock of the music streaming company traded at US$9.22, up 3.36 percent, at 5:28 pm ET on August 16. The stock value of Tencent decreased by 49.41 percent YTD.  

The market capitalization of the music streaming company is US$15.09 billion. Its forward P/E one year is 29.70. The earnings per share (EPS) is US$0.37.  

The highest and lowest stock price of the firm for 52 weeks is US$32.25 and US$9.51. Its ten days average share volume through August 13 was around 9,285,232.

Source- Pixabay

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Roblox Corporation (NYSE: RBLX)

The California-based video game developer reported a revenue of US$454.1 in Q2, up 127% YoY. Its bookings rose 35% YoY to US$665.5 million. The net cash from operations surged 64% YoY to US$191.2 million. The net loss was US$140.1 million, while its free cash flow came in at US$168 million, up more than 70% in the second quarter of 2021.

The average daily active users (DAUs) jumped 29% YoY to 43.2 million, and DAU outside the US/Canada increased 42%. The hours engaged increased by 13% YoY to 9.7 billion, and engagement outside the US/Canada rose 27% compared to the year-ago quarter.

The average bookings per DAU rose slightly from the Q2 of fiscal 2020 to US$15.41.

The stocks of the gaming company traded at US$76.03, down 4.45 percent, at 5:31 pm ET on August 16. The stock value of Roblox increased by 20.81 percent YTD.  

The market capitalization of the firm is US$45.34 billion. Its forward P/E one year is 101.16.

The highest and lowest stock price of the firm for 52 weeks is US$103.87 and US$60.50. Its ten-day average share volume through August 13 was around 7,112,480.

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Bottom Line:

While Tencent could beat analysts’ revenue estimates. Roblox's stocks decline in the aftermarket session after it missed Wall Street revenue expectations. Tencent's revenue was up 15.5%, while Roblox's revenue rose 127%.

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