China’s Tencent Music Entertainment reported better-than-expected third-quarter revenue on Monday, as the streaming company added more paying users.
However, it recorded the slowest rise in a widely watched metric for its biggest business, social entertainment services, which executives attributed to growing competition.
Tencent Music’s U.S.-listed shares rose as much as 2% before trading down about 1% in volatile extended trade.
The company’s monthly average revenue per paying user from its social entertainment services unit rose 7.4% to 127.3 yuan ($18.20), the slowest growth since it went public in December.
“We recognize that it may be slightly below where we previously thought it would…