Maoyan Entertainment Announces 2023 Annual Results: Revenue and Profitability Exceed Historical Levels
Full Year 2023 Financial Highlights
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Revenue was RMB4,757.4 million, representing a year-over-year increase of 105.1%, compared with
RMB2,319 .5 million in 2022. -
Gross profit was
RMB2,384 .9 million, representing a year-over-year increase of 133.8%, compared withRMB1,020 .0 million in 2022. -
Profit was
RMB907 .8 million, representing a year-over-year increase of 766.2%, compared withRMB104 .8 million in 2022. -
Adjusted EBITDA was
RMB1,249.7 million , representing a year-over-year increase of 290.4%, compared withRMB320 .1 million in 2022. -
Adjusted net profit[1]was
RMB1,029 .0 million, representing a year-over-year increase of 342.2%, compared withRMB232.7 million in 2022.
[1] We defined adjusted net profit as net profit for the year adjusted by adding back share-based compensation and amortization of intangible assets resulting from business combinations. |
BUSINESS REVIEW
In 2023, the entertainment industry witnessed a robust recovery and significant growth. The film market was lively and vibrant, with the development of high-quality films progressing steadily. According to data released by the
In the midst of this strong industry recovery, the Company has capitalised on the opportunity to achieve continuous breakthroughs and developments in its business, with a number of business and financial indicators reaching record highs over the same period in history. These results reflect the Company's ongoing excellence in business operations and profitability. During the Reporting Period, the Company has consistently improved its strength, exceeding historical levels in terms of revenue and profitability. Of particular note is the remarkable growth in the entertainment content services segment in terms of business results and financial performance, with further improvement in its promotion and distribution service capability and market coverage. The Company experienced stable growth in its revenue performance for three consecutive years, further confirming its exceptional development capabilities and expertise in the entertainment content field.
Entertainment Content Services
As a leading promoter and distributor of domestic movies, as well as a premier movie producer and self-developer in
During the Reporting Period, we have continuously refined our promotion and distribution capabilities and products, maintaining a keen sense of project evaluation and an innovative approach to embrace change. We have leveraged our practical experience from numerous projects and iterated our methodologies accordingly. By combining film genres and their own unique characteristics, as well as utilizing our cross-platform resources and data analysis capabilities, we have developed "one strategy for one movie," "one strategy for one city," and "one strategy for one moment" for precise marketing. We also proposed innovative promotional and marketing service solutions in the industry, contributing to increased industry acknowledgment and the exploration of diversified distribution approaches. These efforts have greatly assisted a number of films in achieving impressive box office results. For example, in the promotion and distribution service plan for Full
Leveraging our high-quality promotion and distribution services, as well as our long-standing and continuously evolving movie selection and data capabilities, we continue to increase our investment in high quality movies in terms of both breadth and depth. During the Reporting Period, the number of movies in which we served as the producer/distributor and their cumulative box office performance reached the highest levels ever recorded for the same period. Our coverage across major release periods also continued to expand. Additionally, our projects generated historically high investment returns, validating our business growth and profitability. Notably, during the Reporting Period, we participated in the promotion and distribution of 52 domestic movies, among which we acted as a lead distributor for 30 domestic movies, setting new records in terms of both the number of movies and the box office. Many of these films performed exceptionally well, such as Creation of the Gods I: Kingdom of Storms (封神第一部:朝歌風雲), which recorded a box office of
In 2024, we have continued to capitalise on our strengths in content promotion, distribution and production. We participated in the top three movies in terms of box office performance during the
Online Entertainment Ticketing Services
In 2023, we continued to provide high-quality ticketing services to the industry. Our online movie ticketing business maintained its market-leading position and continued to consolidate its competitiveness. First, we continued to enhance our service capabilities for film festivals and government cultural activities, providing various high-quality services such as thematic promotions and ticketing services for events including the
Since 2023, the offline performance market has experienced robust growth, and we have seized opportunities arising from the market recovery by increasing our investments and development efforts. As a result, our competitiveness in the ticketing business for live performances has increased. During the Reporting Period, the total revenue and GMV of our offline performances reached new highs compared to the same period in previous years. In particular, we made significant progress in various categories of large-scale performance events. For example, as the general ticketing agent, we provided comprehensive ticketing services for over 100 concerts, including a number of performances featuring top artists such as
Advertising Services and Others
We continue to integrate industry resources and expand our communication channels to enhance the breadth and depth of our promotion and distribution efforts. In 2023, we deepened cooperation with multiple internet platforms, covering various scenarios including gaming, lifestyle services, social media and transportation. We also pioneered a new model of integrated live-streaming marketing, encompassing the top domestic internet ecosystems. In addition, we enhanced brand building and commercial capabilities through live-streaming channels. Meanwhile, we upgraded our presence in new media by consistently delivering high-quality content across platforms such as video channels, Douyin and Weibo. This boosted our movie promotion and distribution efforts, resulting in a cumulative fan base of over 80 million and hundreds of millions of daily video views. As a result, we have become the top-ranked film and television account on several platforms.
We continuously develop a globally leading, transparent, accurate and real-time data system, and consistently iterate our products to serve the film industry with "technology + big data" solutions. During the Reporting Period, our Maoyan Pro (貓眼專業版) continued to grow and strengthen its industry influence. Maoyan Pro (貓眼專業版) introduced multiple data-driven products, providing industry users with more visualised industry information exposure capabilities and multidimensional support throughout the movie production, promotion and distribution process. These products include the "Project Filing Inquiry (備案立項查詢)," which enriches industry information visualisation, and the "Box Office Map (票房地圖)," which showcases real-time market competition dynamics. Furthermore, Maoyan Pro (貓眼專業版) continued to increase its investment in AI and big data technologies. For example, we developed AI video content production and distribution capabilities to capitalize on the short video trend in movie promotion and distribution. We also consistently iterated our AI-powered box office prediction capabilities, providing more robust support for film distributors in adjusting their promotion and distribution strategies. In addition, Maoyan Pro (貓眼專業版) upgraded its cinema services, promoted the adoption of targeted release policies, and provided services for specific customer profiles, real- time precise competitive intelligence, and a one-click application for targeted release. These services helped cinemas and film distributors make informed choices and drive box office growth.
Our
OUTLOOK
Looking back at 2023, the Chinese film market moved in a positive direction and exhibited strong vitality from the demand side, supply side and distribution side, showcasing the immense resilience and potential of the entertainment market. With the combined efforts of government support, market regulations, enterprises' enhanced efficiency and increased audience participation, the film industry has come together and made consistent efforts to forge ahead, striving to drive the prosperous development of the film market with enhanced professional capabilities. Since the beginning of 2024, we have witnessed a steady stream of high-quality films hitting the screens, and the
As a key participant in
- We will further strengthen and leverage our leading advantages and capabilities in movie promotion and distribution. We will increase our participation in the lead distribution and production of blockbusters during key movie periods while optimising the operational efficiency of our content business and enhancing financial performances.
- Live entertainment is one of our Company's strategic development focuses, and we aim to continuously enhance market engagement and competitiveness in this area. Riding on the momentum of the strong market recovery, we will increase investments in key performance projects while continuing to strengthen the infrastructure and service capabilities of our performance business.
- We will also continue to strengthen our exploration of innovative businesses and embrace new technologies, including the implementation of AI technology in various segments across the entertainment industry chain, particularly innovative applications in movie production, promotion and distribution. In addition, we will continue to explore and develop the post- box office market with initiatives such as integrating movie IP with theater and gaming, providing diversified commercial monetisation channels for movies. Furthermore, building upon our business cooperation and development in
Hong Kong andMacau , we will further expand commercial cooperation in other countries and regions as part of our campaign to identify new growth opportunities and possibilities for the Company's development.
Last but not least, we would like to express our sincere gratitude to all of our colleagues, shareholders, and industry partners for their trust and support. Let us forge ahead together and propel the high-quality development of the film industry and the establishment of
About
Non-GAAP Financial Measures
To supplement the consolidated results of the Company prepared in accordance with IFRS, certain additional non-GAAP financial measures (in terms of, operating profit, operating margin, profit for the period, net margin, profit attributable to equity holders of the Company, basic EPS and diluted EPS), have been presented in this press release. These unaudited non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with IFRS. In addition, these non-GAAP financial measures may be defined differently from similar terms used by other companies.
The Company's management believes that the non-GAAP financial measures provide investors with useful supplementary information to assess the performance of the Company's core operations by excluding certain noncash items and certain impact of M&A transactions. In addition, non-GAAP adjustments include relevant non-GAAP adjustments for the Company's material associates based on available published financials of the relevant material associates, or estimates made by the Company's management based on available information, certain expectations, assumptions and premises.
Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.
Investor Relations Contact
Email: ir@maoyan.com
Email: maoyan@tpg-ir.com
Tel: +86-10-6508-0677
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