Reading the financial report for 2019: Online reading business meets challenges, and Xinli Media’s net profit is 550 million.
Editor’s note: This article comes from WeChat public account “Cultural and Commercial Observation” (ID: wenyushangyeguancha) , Author duckweed.
For the first time, revenue from the copyright operations of Reading Media exceeds online reading.
According to the latest annual report published by China Reading Group, in 2019, China Reading Group achieved operating income of 8.35 billion yuan, a year-on-year increase of 65.7%; net profit of 1.112 billion yuan, a year-on-year increase of 21.9%.
In terms of revenue structure, due to the overall integration of Xinli Media throughout the year, the copyright operation revenue has increased significantly, reaching 4.637 billion yuan, an increase of more than 300% compared to 1.12 billion yuan in 2018, and the proportion of operating revenue From 24% in 2018 to 55.5% in 2019, it has become the largest source of operating income.
Since its listing in 2017, the business center emphasized by Reading Group has been not only in online literature, but also in copyright operations based on content IP. It hopes to establish itself as “China Marvel”. This financial report The surge in operating income of copyright in China marks a success for the Reading Group’s business transformation.
Online reading business meets the challenge: The overall MAU is improved, and the number of paid members is reduced.
In 2019, the competition in the online literature market has resumed, and the main battlefield is in the field of free reading.
At one time, even the still-literature, interesting headline Mi Du novels, and byte-beating tomato novels under the WIFI Master Key all entered the venue. Some platforms even achieved good results, paying for the original reading group’s original payment. Reading creates stress.
![Xinli Media has not completed the bet for 2 consecutive years, and the net profit in 2019 is only 549 million yuan.]()
MostThe new paid-read user data already illustrates this. Financial report data show that the number of paying members at the end of 2019 was 9.8 million, a slight decrease compared to 10.8 million in 2018.
Free and paid business models are still essentially different. The essence of the former is a traffic model, which attracts traffic with relatively low-quality content, and then realizes it through advertising; while the latter is a paid income collected through high-quality content, and the potential target population is different.
However, in response to the new trends in the industry, Reading Group launched a free novel platform flying reading in the second quarter of 2019, forming a matrix with its own starting point, red sleeves and fragrance, in the free and paid areas respectively. Exhibition exploration.
The data of the free reading platform flying reading this quarter was also good. It was promoted by Tencent’s WeChat and QQ dual channels, so the overall MAU of the reading group improved. The financial report data shows that based on the overall monthly active user data, a total of 220 million people including Tencent’s channels are calculated; compared with the data in 2018, it has increased slightly;
At the same time, in 2019, on the basis of the original paragraph comments in this chapter, Reading Group added a new dubbing function; it also increased the reading recommendation function through the information flow method, which enriched the reader ’s experience as a whole. Increased stickiness for core users.
Reflected in the financial report data is the increase in the per capita ARPPU value, from 24.1 yuan in 2018 to 25.3 yuan in 2019, indicating that the commercialization of core users, the reading group has made progress.
Xinli Media’s 2019 net profit of 549 million yuan, outstanding performance commitments
For the Reading Group, the outside world is more concerned about the integration of Xinli Media, which it acquired at 15.5 billion yuan. When the head web platform meets the head film and television production company, how do the two cooperate?
In 2019, Xinli Media launchedMany dramas such as Sesame Hutong, “Amazing”, “Qing Yu Nian” and “Elite Lawyer” have received good word-of-mouth feedback, especially the “Qing Yu Nian” at the end of 2019, which not only drove the year-end costume drama fever but also advanced The popularity of VOD has further promoted the C-end mode of the series.
![Xinli Media has not completed the bet for 2 consecutive years, and the net profit in 2019 is only 549 million yuan.]()
The financial report reveals that the second season of “Qing Yu Nian” is already in preparation, and other works such as “Elite Lawyer” and “Broken Sky” have also started simultaneously.
Xinli Media, which has a number of hit works, achieved operating revenue of 3.236 billion yuan in 2019, contributing a net profit of 549 million yuan to the Reading Group.
Objectively speaking, Xinli Media’s operating income and net profit are better than most listed film and television companies. According to the article of the Entertainment Business Observation, shocking, 2019, film and television companies net profit ranking ” data, net profit data 549 million yuan can be ranked TOP5, performance data to Far better than head TV drama companies such as Huace Film, Tang De Film, Ciwen Media, Huan Rui Century.
But compared to itself, or to performance-to-performance, Xinli Media ’s net profit of 549 million yuan is far from meeting the standard.
In 2018, when Liwen Media acquired Xinli Media for 15.5 billion yuan, the original shareholders of Xinli Media had promised that Xinli Media’s net profit in 2018, 2019 and 2020 should be no less than 500 million yuan, 700 million yuan and 9 billion yuan. 100 million yuan, which means that Xinli Media has only completed 80% of its promised performance in 2019.
This is the second consecutive year that Xinli Media has not fulfilled its performance commitment.
The data shows that in 2018, Xinli Media completed 324 million yuan, which is only 64.8% of the commitment of 500 million yuan. Correspondingly, Xinli Media received remuneration from the Reading Group in 2018.The price was reduced from RMB 2.042 billion to RMB 1.188 billion, which means that with the outstanding performance commitments, the actual valuation of Xinli Media is far less than 15.5 billion yuan.
In the beginning of 2020, Xinli Media encountered the black swan of “Xiao Zhan 227 Incident.” Affected by this incident, Xinli Media produced and Xiao Zhan appeared in the works “His Royal Highness” and “The Rest of Your Life. Please advise.” “There is uncertainty as to whether Douro Continent can be scheduled, and whether it can be successfully broadcasted in 2020 requires a question mark.
For the Reading Group, the outside world is more concerned about the integration of Xinli Media, which it acquired at 15.5 billion yuan. When the head web platform meets the head film and television production company, how do the two cooperate?
In 2019, Xinli Media launchedMany dramas such as Sesame Hutong, “Amazing”, “Qing Yu Nian” and “Elite Lawyer” have received good word-of-mouth feedback, especially the “Qing Yu Nian” at the end of 2019, which not only drove the year-end costume drama fever but also advanced The popularity of VOD has further promoted the C-end mode of the series.
The financial report reveals that the second season of “Qing Yu Nian” is already in preparation, and other works such as “Elite Lawyer” and “Broken Sky” have also started simultaneously.
Xinli Media, which has a number of hit works, achieved operating revenue of 3.236 billion yuan in 2019, contributing a net profit of 549 million yuan to the Reading Group.
Objectively speaking, Xinli Media’s operating income and net profit are better than most listed film and television companies. According to the article of the Entertainment Business Observation, shocking, 2019, film and television companies net profit ranking ” data, net profit data 549 million yuan can be ranked TOP5, performance data to Far better than head TV drama companies such as Huace Film, Tang De Film, Ciwen Media, Huan Rui Century.
But compared to itself, or to performance-to-performance, Xinli Media ’s net profit of 549 million yuan is far from meeting the standard.
In 2018, when Liwen Media acquired Xinli Media for 15.5 billion yuan, the original shareholders of Xinli Media had promised that Xinli Media’s net profit in 2018, 2019 and 2020 should be no less than 500 million yuan, 700 million yuan and 9 billion yuan. 100 million yuan, which means that Xinli Media has only completed 80% of its promised performance in 2019.
This is the second consecutive year that Xinli Media has not fulfilled its performance commitment.
The data shows that in 2018, Xinli Media completed 324 million yuan, which is only 64.8% of the commitment of 500 million yuan. Correspondingly, Xinli Media received remuneration from the Reading Group in 2018.The price was reduced from RMB 2.042 billion to RMB 1.188 billion, which means that with the outstanding performance commitments, the actual valuation of Xinli Media is far less than 15.5 billion yuan.
In the beginning of 2020, Xinli Media encountered the black swan of “Xiao Zhan 227 Incident.” Affected by this incident, Xinli Media produced and Xiao Zhan appeared in the works “His Royal Highness” and “The Rest of Your Life. Please advise.” “There is uncertainty as to whether Douro Continent can be scheduled, and whether it can be successfully broadcasted in 2020 requires a question mark.