BRIEF: iDreamSky returns to profitability on new game launches
Online game company iDreamSky Technology Holdings Ltd. (1119.HK) said on Thursday it expects to report a return to profitability in the first half of 2025 from the year-ago period, crediting the turnaround to new product launches.
The company said it expects to report it earned a net profit of between 20 million yuan ($2.8 million) and 50 million yuan in the first six months of this year, compared with a 109 million yuan loss in the first half of 2024. It added it recorded net cash from operating activities of 30 million yuan to 60 million yuan for the period, compared with 34 million yuan in the year-ago period.
“The net profit records a turnaround from loss to profit mainly due to the launch of self-developed products and new products of the group, leading to an increase in the group’s profit margin,” it said.
The company’s revenue fell 21% in 2024 year-on-year to 1.51 billion yuan, while its net loss widened to 529 million yuan from 453 million yuan in 2023.
iDreamSky’s stock opened up 9.6% at HK$0.91 on Friday and continued to rise, up 20% in early trade. The stock was down 68% at Thursday’s close.
By Doug Young
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