American depositary receipts of Tencent Music Entertainment Group (TME) slid 9% in value on Tuesday after the China-focused online music-streaming service revealed first-quarter earnings that surpassed estimates but also unexpectedly announced a senior management departure.
Tencent Music on Monday posted first-quarter net profit of RMB 987 million ($147 million) or 9 cents a share, a 17.4% gain from a year ago. Revenue of $855 million was up 39.4% from the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 8 cents a share on revenue of $861.3 million.
In a separate release, however, Tencent announced that Guomin Xie, a board member and co-president, resigned for personal reasons, effective June 6. The company also said Zhenyu Xie, co-president and board member, will become chief technology officer.
Tencent said it ended the quarter with 654 million mobile monthly active users, up 4.6% from a year ago. Of those, 28.4 million were paying customers, up 27% from the year-earlier period.
It had 225 million users of its social entertainment platform, 10.8 million of whom were paying users.
Tencent's American depositary receipts fell 9% to $14.57.