FAST NEWS: Linmon Media swings to the red on TV drama delay
The Latest: TV drama producer Linmon Media Ltd. (9857.HK) said on Friday it expects to report a net loss of 50 million yuan ($7 million) to 55 million yuan for the first half of the year, reversing a profit of 131 million yuan in the year-ago period.
Looking Up: The company’s board emphasized that Linmon currently has strong cash flow and a stable financial position.
Take Note: The drop into the red owed primarily to the broadcasting delay for a drama series originally set to air in the first half of 2024 to the second half of the year due to scheduling arrangements, the company said. Accordingly, revenue and profit recognition related to the series will be postponed to the second half of 2024.
Digging Deeper: Founded in 2014 in Shanghai, Linmon focuses on TV drama investment, production, distribution, promotion and derivatives licensing. It relies on Tencent (0700.HK) as its major client, not only licensing shows to Tencent’s video platform but also making commissioned shows for the tech giant. Tencent became a Linmon shareholder prior to its IPO, and currently holds about 19% of the company. Linmon listed in Hong Kong in 2022, raising net proceeds of HK$320 million ($41 million).
Market Reaction: Linmon’s shares tumbled on Monday when the market opened, closing down 10.3% at HK$5.16 by the midday break, a new 52-week new.
Translation by A. Au
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