Shares of Tencent Music Entertainment Group (TME) plummeted 6.02% in pre-market trading on Thursday, following the release of its third-quarter financial results. The sharp decline comes as the company's profit fell short of analyst expectations, overshadowing strong revenue growth.

TME reported a net profit of 2.15 billion yuan for the third quarter, missing the analyst consensus estimate of 2.37 billion yuan, according to data compiled by LSEG. This disappointing bottom-line performance appears to be the primary driver behind the stock's significant drop.

Despite the profit miss, TME's revenue showed robust growth, jumping 20.6% to 8.46 billion yuan ($1.19 billion). This figure surpassed analysts' expectations of 8.22 billion yuan, driven by strong performance in the company's online music services. However, the positive revenue surprise was not enough to offset investor concerns about profitability. Adding to the pressure, operating expenses grew 7.6% to 1.31 billion yuan, higher than the estimated 1.24 billion, potentially contributing to the earnings shortfall.

The market's reaction highlights the importance investors place on profitability, even in the face of strong top-line growth. As TME continues to navigate the competitive digital music landscape in China, balancing growth with cost management will be crucial for future performance. Despite the current setback, it's worth noting that the stock has still gained 67.40% year-to-date, reflecting overall positive sentiment towards the company's long-term prospects.