Shenzhen Business Daily Reading Client Reporter Ma Qiang
On the evening of April 21, Mango Supermedia (300413), the only state-owned long-term video new media company in A-shares, released its first quarter report for 2024 and its annual report for 2023.
According to the first quarterly report, the company achieved operating income of 3.324 billion yuan during the reporting period, a year-on-year increase of 7.21%, and a net profit of 472 million yuan, a year-on-year decrease of 13.85%. The company explained that due to the change of preferential corporate income tax policies, the company recognized an increase of 87.9922 million yuan in income tax expenses in the first quarter compared with the same period last year, resulting in a year-on-year decline in after-tax profit.
According to the annual report, the company's total operating income in 2023 will be 14.628 billion yuan, a year-on-year increase of 4.66%, of which the total operating income in the fourth quarter will be 4.262 billion yuan, a year-on-year increase of 21.16%, the net profit attributable to shareholders of listed companies will be 3.556 billion yuan, a year-on-year increase of 90.73%, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses will be 1.695 billion yuan, a year-on-year increase of 5.70%. The company's annual profit distribution plan for 2023 is: it is planned to distribute 1.8 yuan (tax included) to all shareholders for every 10 shares.
Mango Supermedia's main business segments include Mango TV, Internet video, new media, interactive entertainment content production, content e-commerce, etc. The reporter noted that judging from the revenue composition of the annual report, Mango TV's Internet video business is still the absolute support of Mango Supermedia. In 2023, the company's revenue from this business will be 10.614 billion yuan, accounting for 72.56% of the company's total revenue.
According to the annual report, members, advertisements and operators, as important monetization channels for long video content, constitute the "troika" of Mango TV's Internet video business. During the reporting period, the membership business accelerated and its proportion continued to increase, the advertising business continued to improve with solid fundamentals, and the operator business continued to maintain steady development. There is a structural complementarity between the various sectors, and the business development is more benign and resilient.
1. The scale of membership has reached a new high. By the end of 2023, Mango TV's effective membership will reach 66.53 million, ranking first among domestic long video platforms. The annual membership revenue reached 4.315 billion yuan, a year-on-year increase of 10.23%, of which the membership revenue in the fourth quarter increased by 35.64% year-on-year.
2. Advertising revenue recovery accelerated. In 2023, the advertising business will achieve operating income of 3.532 billion yuan, a year-on-year decrease of 11.57%, which is significantly narrower than the decline in the first half of the year. Among them, advertising revenue in the fourth quarter increased by 15.95% year-on-year, and the year-on-year growth rate reversed the trend from negative to positive. "Riding the Wind 2023" and "Overcoming Thorns Season 3" and other head IPs have stabilized the investment market of variety show advertising, and "Going to a Windy Place" and "Camp with Love" have set new records for the company's drama series in terms of investment amount and the number of project cooperation customers in the past three years. Thanks to the ecological advantages of multi-platform integration and the continuous and steady growth of user scale, the platform value of Mango TV's brand marketing has been further highlighted, and during the reporting period, efforts were made to expand a number of leading brand customers in key industries such as Internet platforms, liquor, and food, and new customers accounted for one-third.
3. Carrier business maintained steady growth. In 2023, the operator business will achieve operating income of 2.767 billion yuan, a year-on-year increase of 10.27%.
In terms of content, Mango Supermedia said that the company has built a strong content team system, adhered to the principle of "not innovating or dying", and firmly defended the core competitiveness of content innovation. At present, there are 56 variety show teams, 22 film and television production teams and 36 "Xinmang Plan" strategic studios under the company's platform, which is the largest head variety show production organization in China.
In terms of cash flow, the reporter noted that the annual report showed that the net cash flow generated by Mango Supermedia's operating activities at the end of the reporting period was 1,083.77 million yuan, a year-on-year increase of 74.30%, and the company explained in the annual report that it was mainly due to the increase in revenue from operating projects this year.
In terms of AI applications, the annual report shows that Mango Supermedia attaches great importance to the application of AI. The company actively explores the application of cutting-edge technologies such as AI and business innovation, and has launched more than 40 AI products, which are widely used in business scenarios such as media asset operation, advertising, member interaction, video editing, and content production. To improve the effect of recommendation conversion, the AI multi-modal retrieval and creation engine was launched, and the second-level interactive retrieval of massive content was realized through the vector engine and dialogue model; to help reduce costs and increase efficiency, the AI second creation of short videos was applied to variety shows such as "Overcoming Thorns" and "All Acceleration", producing more than 1 million short videos, greatly reducing the cost of content publicity and platform customer acquisition, improving operational efficiency, developing the AIGC HUB application platform, integrating text, images, and other text, images, and other text and images such as domain models, AI painting, and speech generation. AIGC capability of voice modality, innovative business model, cooperation with large model companies to launch AI character dialogue products, linkage AI anthropomorphic large models with popular IPs such as "Da Song Boys' Chronicles 2" and "Love as Camp", establish AI character chat scenes, test new monetization models, and improve user stickiness and activity. In addition, the in-depth integration of AI and content is also an important direction for the company to explore, and AIGC audio dramas, AIGC copywriting, and AIGC posters have been widely used.
In the secondary market, Mango Supermedia closed at 23.54 yuan per share on Friday, up 0.86%, with the latest total market value of 44.04 billion yuan.
Review: Tan Lugang