China's Tencent Music Entertainment Group beat Wall Street estimates for quarterly revenue on Monday, as a wider content library led to a surge in paid subscribers for the company's music streaming service.

Tencent Music, controlled by Chinese tech giant Tencent Holdings Ltd., said paid users of its online music service rose 52 percent to 47.1 million in the second quarter ended June 30.

In comparison, investor and peer Spotify Technology SA reported 138 million paid users in the quarter.

Unlike Spotify, Tencent Music generates only a part of its revenue from music subscription packages and relies more on services popular in China such as online karaoke and livestreaming.

Revenue from Tencent Music's social entertainment services, the largest unit that houses karaoke platforms, rose 8.6 percent to 4.71 billion yuan.

Net income attributable to shareholders rose 1.3 percent to 939 million yuan (134.89 million U.S. dollars) from 927 million yuan a year earlier.

Revenue jumped 17.5 percent to 6.93 billion yuan, beating estimates of 6.85 billion yuan, according to IBES data from Refinitiv.

The company has also signed multiple partnerships with international and domestic music labels to expand its premium user base.