Linmon Media (9857) H1 2024 earnings summary

Executive summary

• H1 revenue fell 54.4% YoY to RMB192.5m and results swung to a net loss of RMB52.9m, as drama broadcasts and revenue recognition shifted to H2.

• Adjusted net loss, excluding share-based payments, was RMB49.4m versus adjusted net profit of RMB139.0m in H1 2023.

• Short-drama production and monetization expanded, while overseas distribution revenue nearly doubled YoY to more than RMB13m.

Financial highlights

• Revenue was RMB192.5m versus RMB422.1m; gross profit was RMB43.0m versus RMB209.9m in H1 2023.

• Gross margin fell to 22.4% from 49.7%; loss before tax was RMB46.6m versus profit before tax of RMB167.0m.

• Basic and diluted loss per share were RMB0.15, versus earnings per share of RMB0.36 in H1 2023; adjusted basic loss per share was RMB0.14.

• Selling and distribution expenses rose to RMB35.3m and administrative expenses to RMB99.0m, driven by promotion and costs for expanding businesses.

• Net assets were RMB2,448.5m at 30 June 2024, down 4.9% from 31 December 2023.

Outlook and guidance

• H2 priorities include premium original dramas, category strategy upgrades, cost control and efficiency, and stronger production-capacity mechanisms.

• Plans include expanding domestic and overseas short-drama capacity, localized content and overseas distribution, upgrading content marketing, and releasing the first cinema film.

• “A Dream within a Dream” remained in production; “In Between,” “Moonlit Reunion” and “Under the Skin II” were in post-production at announcement.