Gelonghui November 13th | Citigroup's report stated that tencent music's third-quarter revenue increased by 6.8% year-on-year to 7 billion yuan, meeting the bank's and market expectations. This was mainly due to the 20.4% year-on-year increase in online music service revenue to 5.48 billion yuan, although slightly lower than the bank's forecast by 1.7%. Subscription revenue increased by 20.3% year-on-year to 3.84 billion yuan, accounting for 55% of total revenue, roughly in line with the bank's expectations. Social entertainment revenue fell by 23.9% year-on-year to 1.54 billion yuan, but still higher than the bank's forecast of 1.43 billion yuan. The bank believes that tencent music's third-quarter adjusted net income increased by 29.1% year-on-year to 1.94 billion yuan, higher than the bank's and market expectations of 1.89 billion and 1.92 billion yuan by 2.7% and 1.1%, primarily due to revenue and gross margin meeting expectations, while sales and marketing expenses were lower than expected, offset by higher general administrative expenses. The bank rates tencent music as "buy" with a target price of $15.