Mango TV has developed a completely different business model from Aiyouteng.
Iqiyi was shorted, and the problem of long-term loss of online video platforms has once again caused heated discussions in the industry. But of these, Mango TV is an exception.
On the evening of April 8, Mango Hypermedia released a first-quarter 2020 performance forecast. It is expected that the company ’s net profit attributable to its mother will be 430 million-490 million yuan, a year-on-year increase of 2.9% -17.2%. The median value of the forecast range was 460 million yuan, a year-on-year increase of 10.1%.
Management said that the membership revenue of its new media platform Mango TV has increased significantly, and the development of operators ’business including online education and life services has accelerated, driving the company ’s overall performance growth.
Mango Hypermedia was reorganized and renamed from the listed company “Happy Buy” in July 2018. The company’s main business includes Internet video business (mango TV advertising and member income), new media interactive entertainment content production (artist brokerage) , IP content distribution), operator business (IPTV, OTT large-screen services), media retail business (formerly TV shopping), etc. Mango Hypermedia’s 2019 annual report shows that the above four businesses contribute 45%, 29%, 13%, and 10% of the company’s total revenue, respectively.
In the first quarter of 2020, many heavyweight content of Mango TV came online, including episodes such as “Under the Jin Yi”, “Next Stop is Happiness”, “Perfect Relationship” and “Wife’s Romantic Trip 3” and “Star” Variety shows such as “Great Detective 5” and “Please listen to your friends” provide a basis for the continued growth of its paying users. The annual report data shows that in 2019, the number of active members of Mango TV has exceeded 18 million.
Mango hypermedia ’s operator business also benefited from the epidemic. Under the epidemic, people’s large-screen living room viewing movies and online education demand broke out, Mango TV with OTT / IPTV license ushered in a wave of growth opportunities. According to QuestMobile data, in the first quarter of 2020, the daily average number of active users of Mango TV was 34.22 million, an increase of 50.1% year-on-year; the average daily use time per capita was 78 minutes, an increase of 9.1% year-on-year. However, compared with the business of members and operators, the epidemic will affect the advertising needs of advertisers in the short term, and its advertising business may be dragged down in the first quarter.
In the latest report released on April 8, Guosen Securities is optimistic about Mango Hypermedia’s special content-based growth path and business model. CICC maintains its outperform industry rating with a target price of 51.5 yuan.
Compared to iQiyi, which is stuck in the quagmire of losses, Mango TV has made a lot of commercialization. Backed by Hunan Satellite TV, Mango TV has obvious advantages in content creation, while also avoiding the high cost of copyright outsourcing (iQiyi’s content cost in 2019 accounts for more than 70% of total revenue). Secondly, Mango TV holds OTT / IPTV license, thisTo enable it to develop operator-related business, the revenue structure is thus distinguished from other online video platforms (iqiyi mainly based on membership and advertising revenue).
Mango TV’s profitability is better than its peers due to content creation and license advantages. The mango supermedia it belongs to has achieved profitability for several consecutive quarters.
(The picture is from Visual China)