The Chinese entertainment game industry faces significant challenges
One of the leading Chinese video platforms, Bilibili (Chinese: 哔里哔哩, HK:09626), released its Q3 2022 financial results on 29 November. According to the report, Bilibili's third quarter revenue was CNY 5.8 billion (USD 811.88 million), an increase of 11% year-on-year; net loss was CNY 1.7 billion, narrowing 36% from CNY 2.7 billion in the same period of 2021.
Bilibili's Chairman of the Board and CEO, Chen Rui, said, "With the challenging macro environment this year, loss reduction has become one of the most important tasks for the company."
Bilibili's revenue mainly comes from value-added services, games, advertising, e-commerce and others. Particularly, the value-added services and advertising growth rate has slowed this year.
Bilibili's value-added services revenue in the third quarter was CNY 2.2 billion, representing a 16% year-on-year growth rate and a 38% revenue share. Advertising revenue was CNY 1.4 billion, an increase of 16% over the same period in 2021. Mobile game revenue was CNY 1.5 billion, an increase of 6% year-on-year and accounting for approximately 26% of revenue. Monthly average paid users of Bilibili reached 28.5 million in the third quarter, an increase of 19% compared to the same period of the previous year.
Chen Rui said Bilibili is the platform with the highest aggregation of game users in China, while much of the content of live streaming and video is related to games. In the future, Bilibili will focus on one or two directions for deeper exploration in game self-research.
As of press time, Bilibili closed at HKD 126.2 apiece, with a market cap of HKD 49.7 billion.