37 Interactive Entertainment 2018 Semi-Annual Report

Key insights

6 takeaways

01
Mobile game revenue grew 39.10% to 2,145,744,221.56 yuan, while web game revenue declined 24.95% to 910,103,611.46 yuan.See it on page 18
02
Net profit attributable to shareholders fell 5.78% to 801,378,948.23 yuan, which the company attributes to the absence of large equity disposal gains in the period.See it on page 10
03
Net profit excluding non-recurring items rose 0.32% year on year to 761,182,531.85 yuan.See it on page 8
04
Sales expenses rose 27.85% to 1,143,478,494.94 yuan, mainly due to higher internet promotion and traffic costs for the mobile game business.See it on page 17
05
The company expects third-quarter domestic mobile game billings of 2.2 to 2.7 billion yuan, a quarter-on-quarter growth rate of 36.2% to 67.2%.See it on page 31
06
Operating cash flow net amount was 977,236,017.96 yuan, down 10.91% year on year.See it on page 8

Summary

This is the 2018 semi-annual report (first half of 2018, period ending 30 June 2018) of 芜湖顺荣三七互娱网络科技股份有限公司 (37 Interactive Entertainment, Shenzhen Stock Exchange code 002555), a company engaged in mobile and web game development, publishing and operation, with some film, animation, music and VR investments, plus automotive plastic fuel tank manufacturing. The report is unaudited, and its consolidated figures are presented in RMB. Revenue for the period was 3,302,496,146.77 yuan, up 7.24% year on year, while net profit attributable to shareholders was 801,378,948.23 yuan, down 5.78%. Mobile game revenue rose 39.10% to 2,145,744,221.56 yuan, while web game revenue fell 24.95% to 910,103,611.46 yuan. The company's domestic mobile game billings were 3.34 billion yuan, up 55.3% year on year. Its estimated third-quarter domestic mobile game billings are 2.2 to 2.7 billion yuan. The report also notes that the company's sales expenses rose 27.85% to 1,143,478,494.94 yuan, mainly driven by internet promotion and traffic costs.