Gala Technology Holding (2458) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 22.5% YoY to RMB775.9m and profit for the year increased 13.3% to RMB84.1m, driven by flagship game upgrades and NBA Rivals’ launch.

• Active-user and revenue scales were maintained at Football Champion, while Total Football grew user and payment scale; NBA Rivals topped Apple’s mainland China free-game list for its first three days.

Financial highlights

• Revenue was RMB775.918m, up 22.5% YoY; gross profit reached RMB415.883m, up 20.7%, while profit for the year was RMB84.146m, up 13.3%.

• Profit before tax increased to RMB85.525m from RMB72.756m; total comprehensive income was RMB84.524m versus RMB76.905m.

• R&D expenses rose 22.4% to RMB133.725m; selling and marketing expenses increased 13.7% to RMB147.333m, and G&A rose 31.8% to RMB60.058m.

• Operating cash flow increased to RMB176.316m from RMB98.264m; cash and cash equivalents ended the year at RMB377.676m versus RMB300.411m.

• Basic and diluted EPS were RMB0.63 each, versus RMB0.54 in 2023.

Outlook and guidance

• 2025 priorities include localization and overseas expansion for Football Champion and Total Football; targeted improvements in Hong Kong, South Korea and Japan are planned for Total Football.

• NBA Rivals is expected to launch in Hong Kong, Macau and Taiwan in 2025; Football Champion’s mini-game version is expected to be tested in H1 2025.

• Code: Fishing Master is expected to begin external testing in Q2 2025; further Arena4D and AI-agent development is planned to improve motion realism and tactical gameplay.

• Football Champion faces stagnation in new-user acquisition in its fifth operating year; planned responses include lean operations, content enhancements and overseas user growth.