Maoyan Entertainment (1896) H1 2025 earnings summary

Executive summary

• Revenue reached RMB2,472.2 million in H1 2025, up 13.9% year-over-year, driven by entertainment content and ticketing services.

• Net profit declined 37.3% year-over-year to RMB178.5 million, impacted by higher content and infrastructure costs and increased investment in live performance and IP businesses.

• Adjusted EBITDA was RMB333.0 million, down 32.0% year-over-year.

• Maintained industry leadership in film promotion, distribution, and ticketing, with record participation in film releases and expansion in IP and AI initiatives.

• Gross profit declined to RMB936.5 million, with gross margin dropping to 37.9% from 53.3% due to higher costs.

Financial highlights

• Entertainment Content Services revenue reached RMB1,209mn, a record high, contributing 48.9% of total revenue.

• Online Entertainment Ticketing Services revenue was RMB1,180.1 million, up 17.05% year-over-year, accounting for 47.7% of revenue.

• Advertising and other revenue declined to RMB83.3 million due to lower advertiser demand.

• Cost of revenue surged 51.3% to RMB1,535.7 million, mainly from higher content production and infrastructure costs.

• Basic and diluted EPS were RMB0.16, down from RMB0.25 year-over-year.

Outlook and guidance

• Expects to participate in 60+ movies and lead distribution on 40-50 movies in 2025, with several major releases scheduled for H2 2025 and 2026.

• Anticipates positive impact on second-half profits from summer film releases and a strong pipeline.

• Continued investment in performance business, IP derivatives, and AI technology to drive future growth.