Idreamsky Technology Holdings Limited · HKEX:1119
Idreamsky Technology — H1 2020 Earnings Presentation
24 slides from Idreamsky Technology's earnings presentation, Aug 26, 2020
Slide 1: 2020 Interim Results Corporate Presentation
2020 Interim Results Corporate Presentation （Stock code：1119）
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of iDreamSky Technology Holdings Limited (the “Company”, and to
Slide 3: Table of Contents
Table of Contents 1 Business Overview 2 Financial Overview 3 Appendix 3
Slide 4: Business Overview
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Slide 5: Our Mission is to be a Leading Online Game Platform in China
Our Mission is to be a Leading Online Game Platform in China Game Publishing and Development to Continuously Release Premium Content Game publishing: Continuously launch mobile games tailor- made to Chinese users with user insight Development: Proven self-development capabilities Partnership: Best-i
Slide 6: Continuously Strengthen Core Game Publishing and Development
Continuously Strengthen Core Game Publishing and Development DreamWorks Adventure Art of War 3 Decisive Battle Against Marfa ✓ Self-developed high quality casual games ✓ Self-developed and launched in July 2020 ✓ Copyrighted licensing by Shengqu Games launched in March 2020 ✓ Over 200,000 DAU, ranki
Slide 7: Game Pipelines
Game Pipelines 2020 重点游戏 Game Genre Source Expected Launch Date Glory ACG ARPG game Self-developed 4Q 2020 Mushroom Wars 2 Casual competition Licensed 4Q 2020 Super Animal Royale Casual competition Self-developed 4Q 2020 The Witch Diary Matching puzzle game Self-developed 4Q 2020 7
Slide 8: Three Game Categories to Focus
Three Game Categories to Focus 1 Matching Puzzle Games 2 Casual Competition Games 3 Mid-and Hardcore Games Gardenscapes Homescapes Super Animal Royale Art of War 3 Cross Gate FIFPro World Players’ Union ✓ 5 matching puzzle games(1) ✓ 5 casual competition games(1) ✓ 23 RPGs, including card RPG, ARPG,
Slide 9: Our Proven Game Development Capabilities
Our Proven Game Development Capabilities Partnership In-house “Super IP + iDreamSky Global Partners In-depth In-house game Competitive Genre” cooperation with global development capabilities Cross Gate (mobile version) leading game —— Launched in 2018 developers Turn-based MMORPG game ◼ iDreamSky’s
Slide 10: Engaging User Community
Engaging User Community Gardenscapes Carnival MAU exceeds 26 million Ranked 1st in cash out capability among the matching puzzle games since the game’s debit and garnered numerous awards Integrated the palace culture of the Imperial Palace in Gardenscapes, and successfully launched the Imperial Gard
Slide 11: Tencent Video Great Moment Voyage
Tencent Video Great Moment Voyage First experiential entertainment retail block in China Jointly designed by Sony PlayStation and the Company Marketing partnership authorization of Sony PlayStation and authorized offline stores of China-exclusive version Tencent Switch Consolidating pan-entertainmen
Slide 12: Our Growth is Achieved Through Self-developed Core Businesses and External Collaboration
Our Growth is Achieved Through Self-developed Core Businesses and External Collaboration Self-developed core businesses External collaboration accelerating Flywheel Content ◼ Games development operation and self-development ◼ Game operation and commercialization Online user ◼ In-game communities ser
Slide 13: 2020 Outlook and Strategy
2020 Outlook and Strategy 1 Continue to focus and strengthen self-development capabilities Enhance live operations and content update to extend game longevity and 2 monetization capabilities Engaging loyal user base improves user engagement with a strong sense of 3 belonging Accelerate offline “Tenc
Slide 14: Financial Overview
2 Financial Overview 14
Slide 15: 1H2020 Key Financials
1H2020 Key Financials (RMB millions) For the six months ended 30 June, 2020 Revenue Gross Profit Net Profit 1,591 1,431 4 200 9 1 160 +11.2% +1.4% 676 685 1,388 1,261 -31.1% 312 102 215 67 210 148 1H2019 1H2020 1H2019 1H2020 1H2019 1H2020 Game Information Services Others Net profit Adjustments Adjus
Slide 16: 1H2020 Key Financials
1H2020 Key Financials Average MAU (mm) Average MPU (mm) ARPPU (RMB) 142.0 130.1 35.5 31.7 5.8 6.2 1H2019 1H2020 1H2019 1H2020 1H2019 1H2020 For the six months ended 30 June, 2020 The average MAUs increased to 142.0 million in 1H2020 driven by the increasing popularity of our mobile games. The MPU in
Slide 17: 1H2020 Key Expenses Analysis
1H2020 Key Expenses Analysis (RMB millions) Selling & Marketing Expenses General & Administrative Expenses Research & Development Expenses As % of Revenue 9.2% 12.1% 8.8% 7.7% 6.7% 7.1% 192.2 131.2 126.4 122.1 112.5 95.6 1H2019 1H2020 1H2019 1H2020 1H2019 1H2020 For the six months ended 30 June, 202
Slide 18: Appendix
3 Appendix 18
Slide 19: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income (Unit: RMB’000 ) 1H2020 1H2019 YOY(%) Revenues 1,591,643 1,431,303 11.2% Cost of revenues (906,850) (755,700) 20.0% Gross profit 684,793 675,603 1.4% Selling and marketing expenses (192,180) (131,154) 46.5% General and administrative expenses (122,088)
Slide 20: Non-IFRS Financial Measure
Non-IFRS Financial Measure (Unit: RMB’000 ) 1H2020 1H2019 YOY(%) Reconciliation of profit for the period to adjusted profit for the period Profit for the period 147,866 210,237 -29.7% Add: Fair value (gains)/losses on financial assets at fair value through profit or (7,434) 5,141 -244.6% loss Add: S
Slide 21: Non-IFRS Financial Measure (continued)
Non-IFRS Financial Measure (continued) (Unit: RMB’000 ) 1H2020 1H2019 YOY(%) Reconciliation of profit for the period to EBITDA and adjusted EBITDA Profit for the period 147,866 210,237 -29.7% Add: Depreciation of property and equipment, investment property, right-of-use assets 15,920 16,049 -0.8% an
Slide 22: Expenses by Nature
Expenses by Nature (Unit: RMB’000 ) 1H2020 1H2019 YOY(%) Channel costs 634,101 506,267 25.3% Employee benefits expenses 189,190 149,878 26.2% Promotion and advertising expenses 186,965 126,047 48.3% Content costs 175,045 162,573 7.7% Amortization of intangible assets 75,065 65,006 15.5% Impairment p
Slide 23: Condensed cash flow statement and balance sheet
Condensed cash flow statement and balance sheet (Unit: RMB’000 ) Condensed consolidated cash flow statement 1H2020 1H2019 YOY(%) Net cash inflow from operating activities 50,412 17,565 187.0% Net cash outflow from investing activities (376,150) (539,510) -30.3% Net cash inflow from financing activit
Slide 24: Key Financial Ratios and Key Operational Metrics
Key Financial Ratios and Key Operational Metrics Key Financial Ratios 1H2020 1H2019 Gross profit ratio 43.0% 47.2% Adjusted net profit ratio 13.5% 21.8% Adjusted EBITDA ratio 23.4% 30.6% Debt ratio 40.1% 32.2% Current ratio 2.05 1.87 Key Operational Metrics Average MAUs(millions) 142.0 130.1 Average
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