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Boyaa Interactive International Limited ௹ඩʝਗყϞࠢʮ̡
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 0434)
THIRD QUARTERLY RESULTS ANNOUNCEMENT
FOR THE THREE AND NINE MONTHS ENDED
30 SEPTEMBER 2018
FINANCIAL HIGHLIGHTS
For the year
For the nine months ended 30 September 2018 2017
Year-on-Year
RMB'000 RMB'000 (unaudited) (unaudited)
Change* %ended 31 December 2017
RMB'000(audited)
Revenue- Web-based games- Mobile gamesGross profit
368,972
576,135
(36.0) 735,602
129,959
170,971
(24.0) 220,730
239,013
405,164
(41.0) 514,872
250,101
361,134
(30.7) 457,267
Profit attributable to owners of the Company Non-IFRS adjusted net profit***
188,002
208,054
(9.6) 243,245
190,749
216,412
(11.9) 253,110
For the three months ended 30 September 2018 2017
Year-on-Year
RMB'000 RMB'000 (unaudited) (unaudited)
Change* %
Revenue- Web-based games- Mobile gamesGross profit
84,737
164,430 (48.5)
33,740
54,326 (37.9)
50,997
110,104 (53.7)
56,117
108,696 (48.4)
Profit attributable to owners of the Company Non-IFRS adjusted net profit***
34,224
66,685 (48.7)
34,893
69,090 (49.5)
REVENUE BY GAMES
For the nine months ended 30 September 2018 2017
RMB'000 RMB'000 (unaudited) (unaudited)
Year-on-Year
Change*%
Texas Hold'em SeriesOther Card and Board *****
279,906 89,066
403,642 (30.7)
172,493 (48.4)
Total
368,972
576,135 (36.0)
For the three months ended 30 September 2018 2017
RMB'000 RMB'000 (unaudited) (unaudited)
Year-on-Year
Change*%
Texas Hold'em SeriesOther Card and Board *****
Total
60,187 24,550 84,737
REVENUE BY LANGUAGE VERSIONS OF GAMES
125,922 (52.2)
38,508 (36.2)
164,430 (48.5)
For the nine months ended 30 September 2018 2017
RMB'000 RMB'000 (unaudited) (unaudited)
Year-on-Year
Change*%
Simplified ChineseOther languages
130,202 238,770 368,972
Total
300,683 (56.7)
275,452 (13.3)
576,135 (36.0)
For the three months ended 30 September 2018 2017
RMB'000 RMB'000 (unaudited) (unaudited)
Year-on-Year
Change*%
Simplified ChineseOther languages
Total
13,816 70,921 84,737
82,929 (83.3)
81,501 (13.0)
164,430 (48.5)
OPERATIONAL HIGHLIGHTS
Year- | Quarter- | ||||
30 September | 30 June | 30 September | on-Year | on-Quarter | |
2018 | 2018 | 2017 | Change* | Change** | |
(unaudited) | (unaudited) | (unaudited) | % | % | |
Paying Players (in thousands) | 535 | 594 | 1,257 | (57.4) | (9.9) |
- Web-based games | 17 | 21 | 32 | (46.9) | (19.0) |
- Mobile games | 518 | 573 | 1,225 | (57.7) | (9.6) |
Daily Active Users ("DAUs") (in thousands) **** | 3,183 | 3,338 | 4,792 | (33.6) | (4.6) |
- Web-based games | 201 | 203 | 368 | (45.4) | (1.0) |
- Mobile games | 2,982 | 3,135 | 4,424 | (32.6) | (4.9) |
Monthly Active Users ("MAUs") (in thousands) **** | 10,990 | 12,462 | 19,943 | (44.9) | (11.8) |
- Web-based games | 839 | 871 | 1,450 | (42.1) | (3.7) |
- Mobile games | 10,151 | 11,591 | 18,493 | (45.1) | (12.4) |
Average Revenue Per Paying Users ("ARPPU") of | |||||
Texas Hold'em Series (in RMB) | |||||
- Web-based games | 664.4 | 733.3 | 573.3 | 15.9 | (9.4) |
- Mobile games | 126.8 | 189.3 | 246.1 | (48.5) | (33.0) |
ARPPU for Other Card and Board (in RMB) | |||||
- Web-based games | 29.3 | 59.0 | 106.4 | (72.5) | (50.3) |
- Mobile games | 18.0 | 22.5 | 11.3 | 59.3 | (20.0) |
For the three months ended
* Year-on-Year Change % represents a comparison between the current reporting period and the corresponding period last year.
** Quarter-on-Quarter Change % represents a comparison between the quarter ended 30 September 2018 and the immediately preceding quarter.
*** Non-IFRS adjusted net profit was derived from the unaudited profit for the period excluding share-based compensation expenses.
**** The numbers of DAUs and MAUs shown above are calculated based on the number of active players in the last calendar month of the relevant reporting period.
***** The categories of "Fight the Landlord" and "others" set out in the summary in the previous quarterly results announcement are combined and referred to as "Other Card and Board" above.
The board of directors (the "Board") of Boyaa Interactive International Limited (the "Company" or "we" or "our" or "us") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group" or "we" or "our" or "us") for the three and nine months ended 30 September 2018 (the "Reporting Period") (the "Third Quarterly Results"). The Third Quarterly Results have been reviewed by Pan-China (H.K.) CPA Limited, the auditor of the Company, in accordance with International Standard on Review Engagements 2410 "Review of interim financial information performed by the independent auditor of the entity" issued by the International Auditing and Assurance Standards Board, and by the audit committee of the Company. This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).
BUSINESS OVERVIEW AND OUTLOOK
In terms of financial performance, the Company recorded a revenue of approximately RMB369.0 million for the nine months ended 30 September 2018, representing a decrease of approximately 36.0% compared to the same period in 2017. The decrease was primarily due to (1) the impact from the incident of Apple Inc. carrying out rectification and inspection of the applications launched on its system starting from the second quarter of 2017 ("Apple Incident"); (2) the effect of regulatory risk regarding the market rumor of the implementation of the "Administrative Measures of Online Chess and Card Games" by the Chinese government aiming to shut down Texas Hold'em poker games and prohibiting the operation of Texas Hold'em poker games starting from 1 June 2018. Although such policy has not yet been implemented, certain platforms have removed relevant products, which affected our revenue to a certain extent ("Policy Risk Factor"); and (3) revenue generated from web-based games decreased due to the industry trend of a gradual transfer of web-based games to mobile terminals. As a result of these factors, we recorded a revenue of approximately RMB84.7 million for the third quarter of 2018, representing a year-on-year decrease of approximately 48.5% compared to the third quarter of 2017. The revenue of the Company for the third quarter of 2018 decreased by approximately 31.9% compared to the second quarter of 2018, which is mainly due to the effect of the above Policy Risk Factor since the second quarter of 2018.
Although our revenue has been significantly impacted, due to the continuous and smooth implementation of the Company's cost control policy as well as factors such as the increase in investment income from the Company's equity investment in partnership enterprises, such factors offset the impact on profit brought by the decrease of revenue of the Company, resulted in a slight year-on-year decrease of approximately 11.9% in unaudited non-IFRS adjusted net profit for the nine months ended 30 September 2018 compared to the nine months ended 30 September 2017. In the third quarter of 2018, we recorded an unaudited non-IFRS adjusted net profit of approximately RMB34.9 million, representing a year-on-year decrease of approximately 49.5% compared to the third quarter of 2017 and representing a quarter-on-quarter decrease of approximately 52.0% compared to the second quarter of 2018. Apart from the effect of one-off non-business projects such as fair value changes in equity investment partnerships and asset management plans and dividends from equity investment partnerships, the non-IFRS adjusted net profit for the third quarter of 2018 represents a year-on-year decrease of approximately 35.8% compared to the third quarter of 2017 and a quarter-on-quarter decrease of approximately 36.2% compared to the second quarter of 2018.
In terms of the Company's operating performance, the number of our paying players and users recorded a slightly decline in the third quarter of 2018 compared to that of the second quarter of 2018. In particular, the number of paying players decreased by approximately 9.9% from approximately 0.6 million players in the second quarter of 2018 to approximately 0.5 million players in the third quarter of 2018. The number of DAUs decreased by approximately 4.6% from approximately 3.3 million players in the second quarter of 2018 to approximately 3.2 million players in the third quarter of 2018. The number of MAUs decreased by approximately 11.8% from approximately 12.5 million players in the second quarter of 2018 to approximately 11.0 million players in the third quarter of 2018, while ARPPU of Texas Hold'em web-based games in the third quarter of 2018 increased as compared to the corresponding period of 2017.
The Company will devote more efforts to strengthen the market research and enrich the games rules in the future so as to enhance users' game playing experience while continuing to refine our products and diversify our operation, thereby comprehensively improving the game quality and building our brand for online and offline competition games. By strengthening the current market share, the Company will further expand overseas market and other chess and card games business, aiming to offset the potential effect of Policy Risk Factor on the Company. The Company will strictly comply with various laws and regulations of the People's Republic of China ("PRC") and create games and competition products of high quality, thereby enabling the Company to be developed into a time-honoured brand in the chess and card game industry.