China-Singapore Jingwei client, May 19 (Zhao Jiaran) On May 19, Bilibili (Station B) released its unaudited financial report for the first quarter of fiscal year 2020 as of March 31. According to the financial report, according to the US General Accounting Standards (GAAP), Bilibili ’s total net revenue in the first quarter was 2.315 billion yuan, an increase of 69% year-on-year; at the same time, its net loss was 538.6 million yuan, a net loss from the same period last year RMB 195.6 million expanded by 175%.
The financial report shows that in the first quarter, the average monthly active users of station B increased by 70% year-on-year to 172 million, and the average monthly active users of mobile terminals increased by 77% to 156 million. From the perspective of paying users, the average monthly number of paying users at Station B increased to 13.4 million in the first quarter, a year-on-year increase of 134%.
Chen Rui, the CEO of Station B, said on the earnings conference call that user growth is the focus of work for the entire year of 2020, and increase marketing efforts for users who have not used Station B and have not heard of Station B. The user growth goal of Station B in 2020 is to reach 180 million monthly active users and 220 million in 2021.
In April of this year, Station B announced that it had obtained a strategic investment of US $ 400 million from Sony, and said that it would develop further business cooperation with animation and games. By then, Sony will hold approximately 4.98% of the total issued shares of Station B through its subsidiaries. In 2016, B Zhan announced the exclusive representation of Fate / Grand Order, a mobile game owned by Sony ’s wholly-owned subsidiary Aniplex.
In May of this year, Station B caused a heated discussion on various social platforms because of the launch of the youth declaration film "Houlang", which was said to have caused a "breaking circle" effect. Prior to this, its first trial of the offline New Year's party, video playback reached 36.74 million person-times. Tiger Securities analysis said that Bilibili is working on non-gaming business, gradually expanding from a vertical business line to a parallel business line, to promote the diversification of revenue.
Screenshot of the video "Houlang"
It is worth noting that the sales and marketing expenses of the B station in the first quarter remained high, and even increased significantly by 234% to 606 million yuan. The company said that the main reason for the increase in expenses was the increase in channel and marketing expenses related to the B-site applications and brands, the increase in the promotion expenses of the company's mobile games, and the increase in sales and marketing staff.
An industry source told the reporter of China New Singapore Jingwei that most of the profit model of video websites is to expand the user group, and then gradually increase revenue. Judging from the current trend of station B, long-term plans are needed to achieve profitability. "With the expansion of the number of users of station B and the increase of user stickiness, the various operating expenses will also increase, and its revenue growth rate is far slower than the growth rate of expenses, which has become the main reason for the expansion of losses. "
Regarding the diversified development of business, the above-mentioned industry insiders said that while "breaking the circle", stabilizing the "senior" users should still be the main line strategy of the B station.
Southwest Securities pointed out in the research report that users in China's game and video industry have initially shown the trend of "use the old, play the old and see the old". The high-quality content IP will have a life cycle of cross-ages and hold high quality. Listed companies with IP and content distribution channels will further enjoy the growth dividend of the content house economy. E-commerce platforms and other technical foundations support the transfer of consumer scenarios, the smooth online conversion of life and work, and some subdivision tracks after the epidemic are still sustainable.
In the financial report, Station B had an outlook for the second quarter of 2020, and expected revenues of 2.5 billion yuan to 2.55 billion yuan. (Sino-Singapore Jingwei APP)
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