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UPDATE 1-Tencent Music profit beats as paid subscribers grow

(Adds details on users; Compares with estimates)

May 13 (Reuters) - China's Tencent Music Entertainment Group beat Wall Street estimates for quarterly profit on Monday, as more users paid for its music streaming services.

The company, controlled by Chinese tech giant Tencent Holdings Ltd, said paid users of its online music service jumped 27.4% to 28.4 million in the first quarter ended March 31.

"As our users increasingly consume music content through streaming services, we are riding on this trend to gradually transition into a pay-for-streaming model over the coming years," Chief Executive Officer Cussion Pang said in a statement.

Unlike Western peers such as Spotify Technology SA, Tencent Music generates only a fraction of revenue from music subscription packages, and instead relies heavily on services popular in China such as online karaoke and live streaming. The Swedish streaming service is a stakeholder in Tencent Music.

Separately, the company said co-President and Director Guomin Xie had resigned due to personal reasons and named Zhenyu Xie as its chief technology officer.

The company reported net income of 986 million yuan ($143.39 million) for the latest quarter.

Excluding items, the company earned 0.72 yuan per American depositary share, beating analysts' average estimate of 0.69 yuan, according to IBES data from Refinitiv.

Tencent Music said revenue jumped 39% to 5.74 billion yuan ($834.73 million), but fell short of analysts' estimates of 5.797 billion yuan.

($1 = 6.8765 Chinese yuan renminbi) (Reporting by Akanksha Rana in Bengaluru and Pei Li in Beijing; Editing by Anil D'Silva)