Maoyan Entertainment (1896.HK) Q3 2024 Earnings Report

Maoyan Entertainment reported QQ3 2024 revenue of 955.64 million CNY, marking a 25.35% year-over-year decline and an 11.96% quarter-over-quarter drop. The quarter delivered a gross profit of 234.42 million CNY (gross margin 24.53%), but the company posted an operating loss of 105.51 million CNY and a net loss of 51.46 million CNY, with earnings per share of -0.045. EBITDA stood at -94.62 million, and the company generated negative free cash flow of -590.39 million for the period. The results reflect a softer box office environment and ongoing investments to expand content, platform capabilities, and ticketing monetization, which weighed on near-term profitability. Despite the earnings weakness, Maoyan maintains a solid liquidity position with total cash and short-term investments of approximately 2.51 billion CNY and a net cash balance of about -421.84 million CNY, underscoring balance-sheet resilience amid volatility in the cinema/advertising cycle.

The QQ3 2024 performance shows a material margin contraction versus Q2 2024, driven primarily by a weaker revenue mix and higher operating and content-related expenditures. The quarter’s negative profitability contrasts with stronger profitability in some prior quarters, highlighting the need for a clearer trajectory on monetization, cost discipline, and content ROI. Management commentary in the period is not included in the provided data; thus, the assessment relies on reported numbers and structure of cash flows. Investors should monitor the pace of revenue stabilization, the evolution of the content strategy, user growth, and the company’s ability to convert operating activity into sustained free cash flow over the next several quarters.