Perfect World (002624) Q1 2025 earnings summary

Executive summary

• Q1 revenue reached ¥2.023bn, up 52.22% YoY; net income attributable to shareholders was ¥302.2m, versus a ¥29.8m loss a year earlier.

• Excluding non-recurring items, attributable net income was ¥163.3m, up 203.06% YoY; non-recurring gains totaled ¥138.9m, primarily from the sale of the Chengfeng studio.

Financial highlights

• Operating costs rose 119.63% YoY, mainly as multiple aired film and TV productions moved from inventory into cost of sales.

• Gross margin was 52.29%, down 14.65% YoY, as the higher share of lower-margin film and TV revenue diluted the mix.

• Management expenses fell 43.55% YoY, reflecting higher talent-optimization compensation costs in the prior-year period; finance expenses also declined substantially as interest costs decreased.

Segment performance

• Games revenue was ¥1.418bn, up 10.37% YoY; Zhuxian World and esports titles DOTA2 and Counter-Strike contributed growth, partly offset by lower mobile-game revenue.

• Film and TV revenue was ¥595.9m, up 1,616.29% YoY, as multiple productions aired and revenue was recognized.

• Attributable game-segment net income was ¥291.9m, or ¥162.5m excluding non-recurring items; film and TV contributed ¥25.8m, or ¥16.2m excluding non-recurring items.