Linmon Media (9857) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 46.2% YoY to RMB657.0m; net loss was RMB190.1m versus profit of RMB213.6m in FY2023, reflecting fewer drama episodes released and industry-wide pressure.

• Adjusted net loss, adding back share-based payments, was RMB184.1m versus adjusted net profit of RMB227.4m; adjusted basic EPS was RMB(0.51).

• Content expansion continued across original dramas, cinema, short dramas, overseas distribution and IP derivatives, while short-drama profitability remained under development.

Financial highlights

• Revenue was RMB657.0m, down 46.2% YoY; cost of sales declined 25.9% to RMB548.5m.

• Gross profit fell to RMB108.5m from RMB481.6m; gross margin contracted to 16.5% from 39.4%.

• Loss before tax was RMB213.4m; income tax credit was RMB23.4m, versus tax expense of RMB71.9m in FY2023.

• Reported basic and diluted EPS were both RMB(0.52), versus RMB0.59 in FY2023.

• Selling and distribution expenses rose 70.7% to RMB158.7m, mainly reflecting short-drama expansion; administrative expenses were RMB214.8m, broadly flat YoY.

Outlook and guidance

• FY2025 strategy targets over 200 episodes of long-form drama production, with continued premium original and adapted content development.

• Plans include scaling premium short dramas, applying AI in film and drama production, advancing overseas-localized content, and expanding content marketing, IP licensing and artiste brokerage.

• “In the Moonlight” and “Juggling Roles / Ga Xi” were in production; “Moonlit Reunion” and “A Dream within a Dream” were in post-production as of the announcement date.