FAST NEWS: CMGE’s loss narrows on cost controls
The latest: Game operator CMGE Technology Group Ltd. (0302.HK) reported Wednesday its net loss narrowed 90.2% last year to 20.08 million yuan ($2.78 million).
Looking up: The company’s expenses decreased by 28% to 526 million yuan last year, mainly due to lower R&D costs, as well as lower compensation and benefit costs as a result of strict cost controls.
Take Note: The company’s revenue decreased by 4% to 2.6 billion yuan last year as some of its newly launched games underperformed, and other older games posted revenue declines.
Digging Deeper: Founded in 2009, CMGE is a global game operator that listed in Hong Kong in 2019. The company’s revenue rose to record highs for three consecutive years through 2021, but began declining in 2022 as it recorded losses that year and in 2023. The company plans to launch several games in the domestic and overseas markets this year in its bid to return to growth and profitability.
Market Reaction: CMGE shares fell on Thursday morning and closed down 0.85% at HK$1.17 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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