Online entertainment platform Bilibili reports revenue surge but warns China content crackdown will hit costs
A crackdown on gaming content by the State Administration of Radio and Television has meant no new licences have been issued for games in China since March 28
Bilibili, a Chinese video streaming and gaming platform focused on anime-related content, reported a 76 per cent increase in total revenue to US$155.1 million for the quarter ended June 30, beating average analyst estimates of US$146.3 million, but warned of higher operating costs due to an industry-wide crackdown on content by Beijing.
Nasdaq-listed Bilibili announced its earnings after the market close on Monday. Bilibili also reported average monthly active users (MAUs) of 85 million during the second quarter, a 30 per cent increase year-on-year.
“Revenue contribution from our advertising, live broadcasting and value-added services continues to grow. As we ramp up our commercialisation strategy for non-gaming businesses, we aim to further broaden our reach, increase our brand equity and further diversify our revenue streams,” said Sam Fan, CFO of Bilibili.
Bilibili had a setback when its app was removed from several Android app stores in China on July 26, following a crackdown on content deemed inappropriate by China’s Central Cyberspace Administration. It returned to all app stores on Saturday and the suspension didn’t affect users who had already downloaded the Bilibibi app. However, a wider crackdown on gaming content by the State Administration of Radio and Television has meant no new licences have been issued for games in China since March 28, contributing to a slowdown in China’s overall gaming market. Revenue was up 5 per cent in the first half, the first single digit growth in at least a decade.
Despite Bilibili being restored to app stores, the suspension prevented the platform from adding new users in the past month.