iDreamSky Technology (1119) H2 2025 earnings summary

Executive summary

• Returned to profitability in 2025 with RMB19.9 million net profit, reversing a RMB544.6 million loss in 2024.

• Focused on dual engine strategy: overseas high-quality game publishing and self-development, with notable progress in both segments.

• Margin and operating quality improved year-over-year, supported by AI-driven efficiency and cost control.

• Enhanced IP development, with original characters gaining traction and off-game monetization.

Financial highlights

• Revenue declined 11.6% year-over-year to RMB1,338.1 million due to legacy product maturity and project shutdowns.

• Gross profit rose to RMB532.4 million from RMB426.8 million, with gross margin improving from 28.2% to 39.8%.

• Adjusted profit for 2025 was RMB201.0 million, compared to an adjusted loss of RMB30.3 million in 2024.

• EBITDA reached RMB166.1 million, up from a loss of RMB406.9 million; adjusted EBITDA was RMB314.4 million.

• Cost of revenues decreased 25.9% to RMB805.7 million, reflecting higher self-developed product mix.

• R&D expenses halved to RMB82.9 million, aided by AI adoption and product maturity.

Outlook and guidance

• Plans to launch multiple new games and gameplay modes in 2026, including global expansion of Strinova.

• Continued investment in AI to drive efficiency and enhance player engagement.

• Focus on expanding IP portfolio and overseas markets, especially in anime genres.

• Confident in sustaining operational improvements and cash flow generation.