Mango Excellent Media Co. (300413) Q4 2024 earnings summary

Executive summary

• Operating revenue for 2024 was RMB14.08 billion, down 3.75% year-over-year; net profit attributable to shareholders fell 61.63% to RMB1.36 billion, mainly due to a one-off reversal of deferred tax assets following changes in tax policy, which reduced net profit by RMB420 million compared to a one-off increase of RMB1.63 billion in 2023.

• Membership revenue exceeded RMB5 billion for the first time, up 19.3% year-over-year, with 73.31 million members at year-end; advertising revenue was RMB3.44 billion, showing slight fluctuation but maintaining a recovery trend; operator business revenue declined to RMB1.59 billion.

• The company maintained its leadership in variety shows and increased its reserve of major dramas, with 27 key films and TV dramas released and 340 micro dramas produced.

• International business saw strong growth, with Mango TV International App revenue rising from RMB62 million to RMB141 million and downloads reaching 261 million.

Financial highlights

• Operating profit for 2024 was RMB1.74 billion, down 4.21% year-over-year.

• Net cash flows from operating activities were negative RMB25.19 million, a 102.32% decrease year-over-year, mainly due to increased investment in top-tier content.

• Total assets at year-end were RMB32.53 billion, up 3.53% year-over-year; net assets attributable to shareholders were RMB22.49 billion, up 4.64%.

• Basic and diluted EPS were RMB0.73, down 61.58% year-over-year.

• Gross margin for Mango TV Internet video business was 35.33%; new media interactive entertainment content production was 25.74%; content e-commerce was 6.07%.

Outlook and guidance

• The company aims to further strengthen its position in mainstream propaganda, innovate in content production, and accelerate the integration of culture and technology.

• Membership business is expected to remain the main growth engine, with a focus on high-quality content and ARPPU improvement.

• Plans include expanding the micro drama ecosystem, enhancing international communication, and leveraging new technologies such as AIGC and mixed reality.