Recently, with Tencent NetEase released the third quarter earnings report for 2018, we have learned from the report that the domestic listed game companies have entered the “cold winter” performance. In order to more objectively and comprehensively grasp the overall performance of the game industry Q3, the mobile game collected and compiled the revenue and profit status of 58 listed game companies, and summarized the development process of Q3

Q3 The total revenue of these 58 listed companies reached 121.976 billion, but compared with the past, there have been many reductions. 25 companies’ Q3 revenues decreased year-on-year, and 33 Q3 net profits decreased year-on-year. Among them, there are as many as 22 companies with revenues of less than 200 million, and as many as 17 with net profit of less than 10 million. The Q3 performance of game-listed companies is still sluggish

This is the revenue and net profit of 58 games listed companies Q3:

I. Nearly half of the company’s revenue fell, and 17 net profit was less than 10 million.

According to the data, among the 58 listed game companies in the statistics, 25 revenues decreased year-on-year, accounting for about 43%; 17 net profit was less than 10 million; 11 losses during the period…

However, despite the optimism of the big environment, there are still a few companies that have maintained high performance growth under high pressure. In addition to Tencent Netease, Century Huatong, Sanqi Mutual Entertainment, Perfect World, Jinshan Software and Juli Culture have more than 1 billion revenues in Q3. It seems that these companies seem to have their own “winter” skills

世纪华通.

In addition to Tencent NetEase, World Huatong’s performance is the most prominent in terms of the revenue of domestic listed game companies. Its Q3 revenue was about 2.333 billion yuan, an increase of 181.7% year-on-year; net profit was about 169 million yuan, an increase of 75.4%. The reason for the increase in performance was due to the overseas performance of its subsidiaries

According to App Annie data, FunPlus has won the Top 1 income list for the past six months from April to September. According to Sensor Tower data, as of September, the accumulated overseas revenue of King Avalon exceeded RMB 2.638 billion, while the Guns of the Year was RMB 1.493 billion

Sanqi Mutual Entertainment.

In addition to the way of going out to sea, Sanqi Mutual Entertainment is growing by self-research + distribution. Its Q3 revenue was about 2.232 billion yuan, up 61.2% year-on-year; net profit was about 417 million yuan, up 15.6% year-on-year. In addition, the sales expenses in the first three quarters increased by approximately 67.07%

According to the financial report, the sales expenses have increased significantly, which is caused by the promotion of various games under the Sanqi Mutual Entertainment. It can be seen that while many companies have adopted a budget reduction “winter”, they have chosen to do the opposite. It is worth mentioning that its accumulated research and development expenses in the first three quarters have reached nearly 400 million yuan, a year-on-year increase of 24.5%

A perfect world.

Among the companies with revenues exceeding $1 billion, the only one that has fallen year on year is the perfect world. Its Q3 revenue was about 1.846 billion yuan, down 4.7% year-on-year; net profit was about 536 million yuan, up 31.6% year-on-year. Although revenue is affected by its film and television business, net profit growth is more eye-catching

In addition to these companies with a revenue of over 1 billion, there are 14 game companies with a 50% year-on-year increase in revenue in Q3, namely Shenzhen Huicheng, Tianrun Data, Xunyou Technology, Century Huatong. , Shengxunda, Tianzhou Culture, Yuanli, Yaoji Poker, Chinese Online, Zhongying Internet, Shengtian Network and Renzixing

It is worth noting that among the 14 companies, 10 Q3 revenues are less than 500 million yuan. It can be seen that most of the games that can seize the opportunity in this “cold winter” are listed game companies with smaller revenues. In addition, some large-scale companies exchanged high-speed growth through mergers and acquisitions

The first place in the year-on-year growth in revenue of 4 times is Shenzhen Huicheng. Its Q3 revenue was about 401 million yuan, a year-on-year increase of 406.0%; net profit was about 76 million yuan, an increase of 377.3%. The increase in performance was due to the acquisition of revenue by the company, which was previously acquired by 1.383 billion yuan. According to the financial report, in the first three quarters of 2018, the company achieved revenue of approximately 1.284 billion yuan and net profit of approximately 276 million yuan

Tianrun Digital Entertainment also stabilizes its revenue performance through mergers and acquisitions. Its Q3 revenue was about 149 million yuan, a year-on-year increase of 279.6%; net profit was about 0.18 billion yuan, a year-on-year increase of 490%. The main reason for its growth in performance was the result of the performance of the thumb of the subsidiary company. In June 2017, Tianrun Entertainment purchased the thumb for 1.09 billion yuan

In addition, Beiwei Technology, Great Wall Animation, Converse Culture, Jinya Technology, and Chenxin Technology all experienced a 50% year-on-year decline in revenue. It is worth mentioning that, except for the large decline, the revenue of these five companies is below 60 million. It can be seen that, which is greatly affected by the “cold winter”, it is also a listed game company with a small revenue scale

Second, the cash flow is exhausted, and the highest year-on-year decline is over 28 times.

Under the cold winter of capital, how much money is on hand will become an important criterion for measuring how long a company can resist the cold winter, especially for listed companies. Because they are faced not only with profitable losses in business operations, but also from the changes in the capital market and their ability to support their current capital status

In the past six months, the game industry has deeply realized that under the overall tension of the big environment, the stock price, market value and value are all virtual, and only real cash flow can bring a sense of security. However, according to the statistics of the mobile game, there are not many game companies in the whole Q3 that have such a “security feeling”

Among the 22 listed companies that have announced cash flow, the strongest reserve is Sanqi Mutual Entertainment, with cash flow of 411 million, up 28.89% year-on-year. This cash strength makes it not face the stock price decline. It will be to panic and worry, there will be ammunition to make the game products, waiting for the recovery of the big environment, or even against the trend

The second is Yingying, with a cash flow of 303 million, a year-on-year increase of 64.1%; Aigras ranked third with a cash flow of 220 million, a year-on-year increase of 257.6%. The remaining 19 companies have less than 200 million cash flows. Even 13 companies have cash flow at tens of millions. Seven companies have negative cash flows. The most serious is the perfect world, with a negative of 2.41. Billion. In addition, most of the companies with less cash reserves have experienced a year-on-year slump, with the highest plunging 28 times and the cash flow dissipated

And in addition to the seven companies with negative cash flow, the cash flow of other game companies is mostly between 0 and 200 million, so how long does this reserve last? At this stage, we have developed a high-quality mobile game, which is tens of millions or even hundreds of millions. The single-month purchase of a single product is also on the order of tens of millions; the channel is divided into three months. It is a common occurrence; regardless of whether it is R&D or buying, the return cycle is relatively long;

Money, the lifeblood of most game companies. This is quite critical because no one knows how long the winter will last

3. The market value of nearly 90% of game companies fell, and 13 companies fell more than 25%.

For listed companies, the industry’s “cold winter” and performance “diving”, the most direct performance is in the stock price. According to the statistics of mobile games, in the third quarter of 2018, in terms of data intercepted from the first trading day in July and the last trading day in September, there are 52 market-based declines in 58 game companies, accounting for More than 89.7%

At the same time that most of the listed game companies have suffered performance + share price double killing, Shandong Mining Machinery, Huoyan Holdings, Huaqing Feiyang, Shenzhen Huicheng, Caesar Culture, and Palm Technology have come up with the counter The performance of the potential. Among them, the growth rate of Shandong mining machine was the most obvious, with a growth rate of 50.3%, which was caused by Linbu Interactive’s new revenue

And among the companies with a drop of more than 25%, Kunlun Wanwei, Aofei Entertainment, Yingying Network, Jinshan Software, and Meisheng Culture are all companies with a market value of over 10 billion. Under the influence of such a sharp drop in market value, They are equally affected. Take Jinshan Software as an example, its market value has evaporated more than 11 billion yuan before and after Q3

IV. Game listed company life and death battle?

From the Q3’s earnings report, the game company still failed to adjust from the suspension of the number, and 25 companies experienced a year-on-year decline in revenue. Q3 seems to be the most difficult quarter in the game industry

Looking back on the past quarter, the game products have been broken, many companies have broken the grain, lack of sources of revenue; the game capital is low, the capital market is mostly not optimistic about the game companies; the pressure from outside public opinion is increasing, and the criticism of the game industry is increasing; Regulatory tightening, the number has not been released… This situation is quite difficult for the entire game industry, but listed companies bear the brunt, and the transparency of financial reports makes them have to expose their weaknesses, so they look The impact of getting up is also the biggest

The cruelty of capital lies in the very direct and rapid arrival of conflicts. The stock price falls 60% a day, the shareholder pledges 90% of the equity, the capital market is difficult to accept the game company, etc., which makes the game companies very passive in the face of “money”. And Q3 is precisely the most brutal quarter of the experience, the contradictions are intensified, and the gust of wind sweeps the entire industry, arousing anxiety and anxiety

Entering Q4, after several rounds of roller coasters, after the short-term and short-term efforts, the CEOs of the game-listed companies are all in the air. “I don’t look at the stock price now, and do business with peace of mind”