Aug 13 Reuters Tencent Music Entertainment reported a smaller than expected fall in quarterly revenue on Tuesday, cushioned by an increase in paying subscribers at its music streaming platforms.

The Tencent Holdingscontrolled company said revenue fell 1.7 to 7.16 billion yuan 999 million in the three months ended June 30, the fourth straight quarterly drop as it struggles with Beijing39;s crackdown on livestreaming.

However, that was just ahead of analysts39; average forecast of 7.14 billion yuan, according to LSEG data, helped by a 27.7 increase at its online music business.

The number of paying users at the music streaming business rose 17.7 to 117 million, as targeted promotions via telecoms companies as well as ecommerce and video platforms bore fruit.

Quarterly revenues at the company39;s social entertainment business, which includes livestreaming, dropped 42.8.

Beijing began a crackdown on livestreaming nearly a year ago as part of a broader effort to regulate online gambling.

According to analysts, live streamers have sometimes colluded with viewers to manipulate popular lucky draws and share prizes.

In response to the regulatory pressures, Tencent Music discontinued several livestreaming features.

The company39;s U.S.listed shares were down 7.8 in premarket trading.

1 7.1701 Chinese yuan renminbi

Reporting by Harshita Mary Varghese in Bengaluru, and Yelin Mo in Beijing; Editing by Arun Koyyur and Mark Potter

Source Reuters