BRIEF: NetDragon’s profit slumps on weakness in its gaming, education businesses

Game operator NetDragon Websoft Holdings Ltd. (0777.HK) said on Wednesday that revenue from its core gaming business fell 6% last year to 3.94 billion yuan ($543 million) from 4.19 billion yuan in 2023, as products based on its flagship “Eudemons” IP fell due to the company’s “proactive optimization measures.”

NetDragon said revenue for its separately listed education unit, Mynd.ai (MYND.US), fell by an even larger 27.6% to 2.11 billion yuan last year from 2.91 billion yuan in 2023, blaming “a number of industry-wide challenges in the education sector stemming from inflation, threat of tariffs and uncertainty around federal funding for education.”

The company’s profit for the year fell 43.5% to 311 million yuan from 550 million yuan a year earlier. NetDragon said the decline owed partly to a deferred 335 million yuan non-cash expense for Mynd.ai in 2024.

NetDragon’s shares were down 13.6% in Thursday afternoon trading in Hong Kong. Mynd.ai shares fell 4.3% on Wednesday in the U.S.

By Doug Young

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