In 2019, China’s total market share of live entertainment ticketing was basically flat compared to 2018. Cat Eye’s market share is over 60%.
On the evening of March 24, Cat’s Eye Entertainment (0 1896.HK) released its annual financial report for the year ended December 31, 2019.
According to the financial report, in 2019, Cateye Entertainment ’s total revenue was 4.267 billion yuan (RMB, the same below), an increase of 13.6% over the same period in 2018; the annual profit was 458.9 million yuan, which turned into a profit. Adjusted net profit was 703.2 million yuan, a year-on-year increase of 142.4%.
Data source: Cat’s Eye Entertainment financial report Mapping:
Cat’s Eye Entertainment has maintained a good profit momentum. In the semi-annual report for 2019, Cat’s Eye Entertainment stated that it will realize a net profit of 257 million yuan in the first half of 2019, compared with a net loss of 231 million yuan in the same period last year, which is also Cat’s Eye Entertainment achieved profit for the first time. Cancellation of ticket compensation is one of the important reasons. However, this also affected the revenue growth of online ticketing.
In the whole of 2019, Cateye Entertainment’s online ticketing business revenue was 2.332 billion yuan, compared with 2.282 billion yuan in the same period last year, a year-on-year increase of 1%. Although there is less business after canceling the ticket, the marketing money is also less. In 2019, its sales and marketing expenses decreased by a year-on-year 20.2% to 1.548 billion yuan, and the proportion of these expenses in revenue decreased from 51.7% to 36.3%.
The slowdown in online ticketing revenue growth is also related to the slow growth of moviegoers. In 2019, the total box office of Chinese movies was 64.266 billion yuan, a year-on-year increase of 5.4%. Among them, the total box office of domestic movies was 41.175 billion yuan, an increase of 8.65% year-on-year, accounting for 64.07% of the total box office. The number of movie theater visitors was 1.727 billion, an increase of 0.5% year-on-year.
It is worth noting that the online ticketing businessThe proportion of that entered the overall business of Cat’s Eye Entertainment fell from 60.7% in 2018 to 54%. This has also led to an improvement in its revenue structure, and its entertainment content services, advertising and other business revenue accounted for a significant increase, reaching 32.7% and 13.3%, respectively.
Data source: Cat’s Eye Entertainment financial report Mapping:
In addition, the revenue of cat eye entertainment content services in 2019 was 1.396 billion yuan, a year-on-year increase of 30.7%. This is related to the company’s continued expansion of film distribution and production. A total of 14 films were released by Cat Eye Entertainment in 2019, with a box office of 7.4 billion yuan. As the main publisher and co-producer, he has participated in theater films such as “Call of Madness”, “Galactic Tuition”, “Ye Wen 4: The End” and “I and My Motherland”. In addition, Cat’s Eye Entertainment also through investment in Huanxi Media and Erdong Pictures to the upstream and downstream of the film and television industry.
In terms of advertising and other businesses, Cateye Entertainment’s revenue in 2019 was 567.5 million yuan, a year-on-year increase 39.7%, which said that this was due to the continued marketing platform and funding service platform Construction. Currently its traffic entrances include WeChat, QQ, Meituan, Public Comment, Cat’s Eye, Guevara, etc. At the same time, Cat’s Eye Entertainment also built a self-media matrix with more than 300 million followers composed of hundreds of accounts including Cat’s Eye Movies, Xiaoxiaosha Teacher, and more.
The rapid growth of content services revenue, advertising and other business revenues is related to the full-text entertainment strategy previously released by Maoyan Entertainment. Cat’s Eye Entertainment has stated that its business needs to be extended to the upstream and downstream of the industry chain of movies, TV series, online content, and short videos.
However, with the outbreak of the new crown, the entertainment industry has also suffered a lot. The Spring Festival film was withdrawn, and the theater was closed. Cat’s Eye Entertainment, with online ticketing as its core, was also hit hard by the epidemic.
CICC believes that Cateye Entertainment will continue to be optimistic as a box office platform with a solid market share, and use platform capabilities to serve the development potential of the entertainment industry chain. The marketing business represented by Yingqian Advertising may lead it. To add volume. However, the risks it faces are that the growth of the entertainment industry is less than expected and regulations are tightened.