Star Plus Legend Holdings (6683) H1 2024 earnings summary

Executive summary

• H1 revenue rose 76.0% YoY to RMB266.5m; profit for the period increased 55.5% to RMB25.5m.

• IP creation and operation became the largest segment, contributing 58.8% of revenue, driven by TV programmes and related activities.

Financial highlights

• Gross profit increased 44.6% to RMB134.0m; cost of revenue rose to RMB132.6m from RMB58.7m.

• Operating profit was RMB34.1m versus RMB22.7m; profit before tax was RMB36.8m versus RMB22.8m.

• Adjusted net profit, excluding listing and share-based compensation expenses, rose 2.8% to RMB25.8m; adjusted net margin was 9.7% versus 16.5%.

• Basic and diluted EPS were RMB0.03 versus RMB0.02.

Outlook and guidance

• J-Style Trip season three entered production; plans include concert and performance investment, video ringtones with Migu Music and expanded celebrity IP monetization.

• Digital expansion plans include virtual content, artist management, AI music, virtual concerts and a digital rights library developed with Digital Domain Holdings Limited.

• New retail plans include CHOUCHOU vending machines in PRC malls, AI Nutritionist app functions and broader product and distribution channels.