Chinese Internet advertising industry is greatly hit in 2022
Chinese giant video platform Mango Excellent Media Co., Ltd.(Chinese: 芒果超媒, 300413:SZ) announced its Q3 2022 report on 24 October 2022. During the reporting period, the company's revenue was CNY 3.52 billion (USD 480 million), decreasing 6.72% year-on-year; net profit attributable to the parent company was CNY 488 million, falling 7.80% compared with the same period last year.
Founded in 2005, Mango is one of the leading video platforms in China. The company's main businesses include Internet TV video, interactive entertainment for new media, and e-commerce retail.
Mango has achieved consecutive earnings growth for four years, from 2017 to 2021. Since the beginning of 2022, Mango's revenue and net profit have performed poorly, showing a negative growth trend for the first time in the past five years. Wind data shows that since the fourth quarter of 2021, Mango's revenue and net profit have declined except for the second quarter of 2022.
Mango said the Internet advertising industry was significantly impacted by the adverse macroeconomic and COVID-19 factors. The company's core platform, MGTV (Chinese: 芒果TV), experienced a decline of 26.33% year-on-year in advertising business revenue in the first three quarters of 2022, which significantly affected the overall performance. According to CTR data, the Chinese advertising market size decreased by 11.8% year-on-year in H1 2022.
However, MGTV's membership and operation business maintained steady growth. In the first three quarters of 2022, revenue from the MGTV membership business increased by 7.83% year-on-year.
The competitors of Mango include Tencent Video (Chinese: 腾讯视频), IQIYI (Chinese: 爱奇艺, IQ:NASDAQ), Youku (Chinese: 优酷网), Bilibili (Chinese: 哔哩哔哩, 9626:HK).
By the end of 24 October 2022, Mango closed at CNY 23.18 per share, with a total market cap of CNY 43.4 billion.