37 Interactive Entertainment Network Technology Group (002555) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥4.11 billion, down 4.09% year-over-year, with net profit attributable to shareholders at ¥632.83 million, a 34.51% decrease year-over-year.

• For the first nine months, revenue grew 10.76% year-over-year to ¥13.34 billion, but net profit declined 13.45% to ¥1.90 billion.

• Increased sales expenses due to new game launches and higher marketing investments impacted profitability.

• Older games experienced natural revenue decline due to product lifecycle effects.

• The company continues to pursue a strategy of product diversification and global market expansion.

Financial highlights

• Q3 2024 revenue: ¥4.11 billion, down 4.09% year-over-year.

• Q3 2024 net profit attributable to shareholders: ¥632.83 million, down 34.51% year-over-year.

• Nine-month revenue: ¥13.34 billion, up 10.76% year-over-year; net profit: ¥1.90 billion, down 13.45%.

• Basic and diluted EPS for the period: ¥0.86, compared to ¥0.99 year-over-year.

• Operating cash flow for the period: ¥2.27 billion, down 14.70% year-over-year.

Outlook and guidance

• Multiple new games in genres such as MMORPG, SLG, and simulation are in the pipeline, with several already approved for domestic release.

• The company aims to enhance product quality, expand its portfolio, and increase market share through continued R&D and global expansion.

• Focus remains on long-term operation and content innovation to sustain growth and stability.