The cost of station B on the content is 543 million, 1.0016 billion and 1.875 billion respectively, with an investment of 3.4 billion in three years. Among them, the content cost in 2020 soared by 87.3% year-on-year in 2019.
Editor’s note: This article is from the micro-channel public number “three entertainment” (ID: hi3wyu), Author: Three entertainment.
The second listing of Station B raises HK$20 billion, and plans to invest HK$10 billion in content.
Today (April 1), Hong Kong-listed company Xindong Co., Ltd. announced that Station B will subscribe for 22.66 million ordinary shares issued by Xindong Company at a price of HK$42.38 per share, with a total subscription price of approximately HK$960 million. After the transaction is completed, Station B will hold approximately 4.72% of Xindong’s equity.
At the same time, Taobao China, a subsidiary of Alibaba, also subscribed for 3.658 million shares of Xindong, involving an investment of 155 million Hong Kong dollars. After the subscription, the shareholding ratio is about 0.76%. Today’s share price rose 22%.
Xindong’s main business is games, and it has also invested in a number of animation companies. Xindong owns a variety of self-developed and agency games such as “Ragnarok RO”, “Endless Ullara”, “Sausage Party”, “Muse Dash”, “Human Falling Dreamland”, “Bad Fruit Land”, and “Aish”, as well as the game community taptap.
In 2020, there will be 25.7 million monthly live apps of TapTap China, an increase of 43.7% year-on-year; monthly live apps of foreign apps are 4.81 million, an increase of 330.9% year-on-year.
TapTap does not do split transportation and uses advertising as its business model. In 2020, its advertising revenue will be 516 million, a year-on-year increase of 12.2%.
In 2020, Xindong’s online game revenue was 2.148 billion yuan, accounting for 75.4% of its total revenue, and its revenue was down 2% year-on-year. In 2020, the top five games that contribute the most revenue to Heartbeat are “Ragnarok M”, “Endless Ullala”, “Sausage Party”, “Blue Face Dream” and “Tomorrow’s Ark” (representing Hong Kong, Macao and Taiwan regions).
On March 23, the public offering for the second listing of B station back to Hong Kong ended. The global final offer price of the 25 million company Z common shares (offer shares) of the B station international offering and the Hong Kong public offering has been determined. It is HK$808.00 per offer share.
Calculated at this price, the total proceeds from this global offering at station B (before underwriting fees and selling expenses) are expected to be approximately HK$20.2 billion, which will be 50%, 20%, 20% and 10% respectively. For content, research and development, sales and marketing, as well as general corporate purposes and operating capital needs (if the over-allotment option is exercised, a maximum of HK$3.03 billion can be raised).
About 50% of this is about 10.1 billion Hong Kong dollars. Station B will be used for content to support its user growth, content ecology and community development, including but not limited to the acquisition and investment of content, and the production of high-quality paid content (such as national Create animation and variety shows), continue to seek strategic cooperation or alliances with well-known domestic and foreign companies, and continue to provide support and infrastructure, including incentives for content creators, video editing teaching and tools.
20% is used for research and development to improve user experience and strengthen user-centric commercialization capabilities, including artificial intelligence and big data analysis, cloud technology, CDN systems, self-developed games, etc.
B station operating cost composition in recent 3 years
In 2020, the total revenue of station B increased by 77% year-on-year to RMB 12 billion. The net loss in 2020 was 3.1 billion yuan, compared with 1.3 billion yuan in the previous year. In the fourth quarter of 2020, station B has an average MAU of 202 million, a year-on-year increase of 55%; average monthly paying users is 17.9 million, a year-on-year increaseAn increase of 103%; the payment rate was 8.9%, compared with 6.8% in the same period last year; the average DAU was 54 million, an increase of 42%.
From 2018 to 2020, the cost of the content of station B was 543 million, 1.0016 billion and 1.875 billion respectively, and 3.4 billion was invested in three years. Among them, the content cost in 2020 soared by 87.3% year-on-year in 2019.
Of course, the greater cost of station B is in terms of sharing. Nearly half of the operating costs of the past three years have been used to share revenue for game manufacturers and anchors, with amounts of 1.631 billion, 2.494 billion, and 4.366 billion, respectively. yuan.
As of March 16, Station B has spent 686 million yuan on external equity investments and acquired three companies at a price of 768 million yuan.
The three companies acquired by Station B are mainly engaged in online games, animation and apps.
21 companies directly invested by Station B, covering animation, comics, consumer, mobile games, MCN, etc.