Idreamsky Technology Holdings Limited · HKEX:1119
Idreamsky Technology — FY2019 Earnings Presentation
35 slides from Idreamsky Technology's earnings presentation, Mar 27, 2020
Slide 1: 2019 Annual Results Corporate Presentation
2019 Annual Results Corporate Presentation （Stock code：1119）
Slide 2: Contents
Contents 1 Vision & Growth Strategies 2 FY2019 Results 3 FY2019 Business Review 4 2020 Outlook 5 Appendix 2
Slide 3: Vision & Growth Strategies
Vision & Growth 1 Strategies 3
Slide 4: Our Missions: To be the most popular game company
Our Continuous Growth Model : iDreamSky Flywheel Our Missions: To be the most popular game company Quality Mass user base and high quality contents Contents Content sourcing / Enlarged Quality development user base contents Flywheel Attract users in a cost-efficient manner User Monetization stickine
Slide 5: Growth 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 ◼ Game publishing and operation Content operation and ◼ Games development self-development ◼ Advertising service ◼ IP incubation and op
Slide 6: FY2019 Results
2 FY2019 Results 6
Slide 7: 2019 Results Highlights
2019 Results Highlights In 2019, the Group achieved 18.1% yoy growth in revenue. Game revenue and information service revenue were the key drivers for the overall revenue growth. Profit for the year surged by 34.6% yoy while adjusted profit for the year significantly increased by 24.7%. The average
Slide 8: 2019 Key Financials
2019 Key Financials For the year ended 31 December, 2019 (RMB million) Revenue Gross Profit Net Profit 收入 2,793 553 14 2,365 +18.1% 1,226 + 34.1% YoY 332 444 444 7 +34.6% +18.0% 193 270 176 1,039 2,088 2,446 360 268 FY2018 2018 FY2019 2019 FY2018 FY2019 FY2018 FY2019 Game Information service Others
Slide 9: 2019 Core Operating Indicators
2019 Core Operating Indicators Average MAU Average MPU ARPPU (RMB million) (RMB million) (RMB million) FY2019 131.3 FY2019 1H2019 5.7 31.9 FY2018 FY2018 6.7 1H2018 129.2 24.5 For the year ended 31 December, 2019 The average MAUs increased to 131.3 million in 2019 driven by the increasing popularity
Slide 10: 2019 Key Expenses Analysis
2019 Key Expenses Analysis Analysis on SG&A as a Percentage of Revenue Selling & Marketing Expenses General & Administrative Expenses Research & Development Expenses For the year ended 31 December, 2019 As a percentage of revenue: Selling and marketing expenses decreased 10.5%，primarily due to a dec
Slide 11: Table of Historical Financial Data
Table of Historical Financial Data RMB’000 For the year ended 31 December, 2019 2016FY 2017FY 2018FY 2019FY Revenues 1,480,792 1,763,548 2,364,641 2,792,970 Gross Profit 544,131 709,428 1,038,823 1,225,738 Profit before income tax 16,801 173,692 297,047 390,585 Profit of the year 5,121 151,904 267,8
Slide 12: FY2019 Business Review
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Slide 13: Global Gaming Market in 2019
Global Gaming Market in 2019 In 2019, the global gaming market is expected to reach US$148.8 billion. The steadily growing mobile gaming market sector occupied the largest proportion by far, with market revenue of US$68.16 billion, up by 9.7% year-on-year. With the rollout of 5G technology and the r
Slide 14: China's Gaming Market in 2019
China’s Gaming Market in 2019 In 2019, China’s gaming market achieved an actual game sales of RMB233.02 billion, up 8.7% yoy. Actual mobile game sales in China exceeded RMB151.37 billion, up 13.0% yoy, sustaining strong growth momentum. An important indicator of China’s maturing mobile gaming market
Slide 15: Substantially Enhanced Self-develop Capability
Substantially Enhanced Self-develop Capability Cross Gate (mobile version) (魔力寶貝(手機版)) is the FIFPro World Players’ Union 《全民冠军足球》is the first Group’s first self-developed turn-based MMORPG game, sports card RPG with Tencent. co-publishing with Tencent Premium Platform. Ranked 1st in domestic footba
Slide 16: Gardenscapes and Homescapes — Well-known Matching Puzzle Game
Gardenscapes (梦幻花园)、Homescapes (梦幻家园) —— Well-known Matching Puzzle Game MAU exceeds 26 million MAU exceeds 8 million ，Homescapes《梦幻家园》was well received by the market with its high product differentiation, exquisite decoration experience and Gardenscapes《 梦 幻 花 园 》was well high-quality thoughtful se
Slide 17: National-wide Level Game Remains Popular
National-wide Level Game Remains Popular 17
Slide 18: List of Pre-approved Games Obtained in 2019
List of Pre-approved Games Obtained in 2019 Throughout 2019, obtained pre-approvals for 23 games (9 from overseas and 14 from local), which cover a variety of high quality casual and mid-and hardcore games Ranked 4th in terms of the number of pre-approvals secured Game Declaration Type Date of Appro
Slide 19: Intelligent Advertising Placement Platform
Information Service: To Provide Precise, Highly Efficient and Intelligent Advertising Placement Service iDreamSky Intelligent Advertising Placement Platform Advertiser Media Production Material Marketing Center M Budget Video / Photos Bid Price Recommendation Copywriting Recommendation Ad A Copywrit
Slide 20: 2020 Business Outlook
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Slide 21: Focus on High Quality Gaming Contents in 2020
Focus on High Quality Gaming Contents in 2020 1）Matching Puzzle Games - Category Penetration 2）Casual Games – Gain Market Share 3）Mid-and Hardcore Games – High Quality Game Products Matching puzzle games is one of our longest-standing competitive 01 categories, where we have solid advantages in term
Slide 22: 2020 Key Games
2020 重点游戏 Games Genre Source Expected Launch Date DreamWorks Most Wanted Endless running game Self-developed 1Q 2020 (梦工场大冒险) Rakshasa Street: Warrior Body ACG card game Self-developed 2Q 2020 (镇魂街：武神躯) Art of War 3 (全球行动) Real-time strategy game Self-developed 3Q 2020 Bee: The Angels Arrive ACG ARP
Slide 23: DreamWorks Most Wanted
Continue to Enhance In-house Game Development Capabilities - DreamWorks Most Wanted (梦工场大冒险) Product name： DreamWorks Most Wanted 《夢工場大冒險》 Developer：iDreamSky Positioning：The Company's strategic product for the year Type：Horizontal endless running + survival competition Planned launch date: 1Q 2020
Slide 24: Continue to Enhance In-house Game Development Capabilities
Continue to Enhance In-house Game Development Capabilities Rakshasa Street (镇魂街) Zhang CaoTuan Zi (长草团子) Glory (荣耀) Turn-based (回合制) 24
Slide 25: Gardenscapes - 2020 Highlights
Gardenscapes (梦幻花园) -2020 Highlights The "Forbidden City" IP is deeply customized, combining traditional Chinese culture and games to build the "Royal Garden" in the hearts of Chinese people, creating a joyful and educational game experience. 25
Slide 26: Long-term Publishing and Operation Capabilities
Long-term Publishing and Operation Capabilities Advertising cash out Increase Promote Subscription Rich content purchase rate ARPPU membership services Sustainable Growth Unique In-depth Channel Operation capabilities Continuous Tencent Third Party Monetization Self Channel Channel development App s
Slide 27: Offline — Indoor immersive experience
Offline — Indoor immersive experience Esports Gaming Tencent exclusive license Background: Nearly 50% of post-00s and and Social Area post-90s, join offline entertainment at least once a week and their spending is significantly higher than the post-80s and post-70s. “Experience and social networking
Slide 28: Improve User Experience by Employing Cutting-Edge Technology
Improve User Experience by Employing Cutting-Edge Technology Continuous to develop high quality content, including digital entertainment products such as games AI based game level and mock test will Quality be automatically generated contents Ads SaaS system, through big Content data analysis and AI
Slide 29: Appendix
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Slide 30: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Unit: RMB’000 ) 2019FY 2018FY YOY(%) Revenues 2,792,970 2,364,641 18.1% Cost of revenues (1,567,232) (1,325,818) 18.2% Gross profit 1,225,738 1,038,823 18.0% Selling and marketing expenses (293,343) (303,373) -3.3% General and administrative expenses (
Slide 31: Non-IFRS Financial Measure
Non-IFRS Financial Measure (Unit: RMB’000 ) 2019FY 2018FY YOY(%) Reconciliation of profit for the year to adjusted profit for the year Profit for the year 360,397 267,833 34.6% Add: Fair value (gains)/losses on financial assets at fair value through profit or loss (74,672) 10,631 -802.4% Add: Share-
Slide 32: Non-IFRS Financial Measure (continued)
Non-IFRS Financial Measure (continued) (Unit: RMB’000 ) 2019FY 2018FY YOY(%) Reconciliation of profit for the year to EBITDA and adjusted EBITDA Profit for the year 360,397 267,833 34.6% Add: Depreciation of property and equipment, investment property and right-of-use 33,370 7,693 333.8% assets Add:
Slide 33: Expenses by Nature
Expenses by Nature (Unit: RMB’000 ) 2019FY 2018FY YOY(%) Channel costs 1,006,632 975,182 3.2% Employee benefits expenses 337,569 236,142 43.0% Promotion and advertising expenses 279,913 297,883 -6.0% Revenue share to content providers 276,652 215,188 28.6% Amortization of intangible assets 117,438 8
Slide 34: Condensed cash flow statement and balance sheet
Condensed cash flow statement and balance sheet (Unit: RMB’000 ) Condensed consolidated cash flow statement 2019FY 2018FY YOY(%) Net cash inflow from operating activities 350,796 206,400 70.0% Net cash outflow from investing activities (1,148,532) (1,171,478) -2.0% Net cash inflow from financing act
Slide 35: Key Financial Ratios and Key Operational Metrics
Key Financial Ratios and Key Operational Metrics Key Financial Ratios 2018FY 2019FY GP Ratio 43.9% 43.9% Adjusted net profit rate 18.8% 19.8% Adjusted EBITDA Rate 26.1% 28.0% Adjusted return on total equity 14.0% 14.0% Adjusted return on total Assets 7.9% 9.1% Gearing ratio 43.4% 35.2% Current ratio
iDreamSky Technology Holdings — FY2019 Earnings Presentation on 6ix