Financial News
Author: Zhai Ziqian
2021-01-08 17:09
Last update date: 2021-01-08 17:09
Recently, there is news that Bilibili (bilibili, station B) (US stocks: BILI) will go to Hong Kong to submit a listing application as soon as this weekend.
Although many people in Hong Kong have used the services of Station B, everyone may not know the specific services of Station B.
The leading representative of this mainland film platform has recently reported that it is interested in the payment business. What is the main business and development direction of station B?
Station B was listed in the United States in March 2018. It was priced at US$11.5 at the time, and it has risen more than 8 times so far.
According to the first financial report released by station B, that is, in the first quarter of 2018, this famous video platform, known as the "Mainland version of YouTube", had about 80% of its revenue from mobile game business, not from videos Platform income!
Last year's popular competitive game "Fall Guys" (Fall Guys) was finally released by Station B as its exclusive agent in China.
(Fall Guys official website picture)
The proportion of mobile game revenue dropped from 80% to 40%
In fact, B Station has been listed in the United States for more than two years, and its business development has continued to improve. The overall revenue in the third quarter was 3.23 billion yuan (RMB. The same below).
Although the mobile game business revenue is still the largest segment, it increased by 36.65% year-on-year to 1.28 billion yuan, accounting for 39.6%, but it was reduced by about half from the nearly 80% level two years ago, and it no longer depends on a single business.
There are many mobile games at station B, including many RPG games with two dimensions.
And last year's popular competitive game "Fall Guys" (Fall Guys) was finally released by Station B as its exclusive agent in China.
As for other businesses of station B, revenue from value-added services such as membership and live broadcasting reached 980 million yuan, accounting for 30%; advertising revenue was 560 million yuan; e-commerce and other business revenue was 410 million yuan.
In June last year, Station B officially launched the "Knowledge Zone", and automotive content became the fastest growing category.
(Profile picture)
Strengthen content creation to get rid of relying on game business
In order to increase revenue from non-game businesses, Station B has continuously strengthened content creation, making the creator ecosystem increasingly diverse.
Among them, station B focused on the two core strategies of high-quality and IP-based, and strengthened the field of professional production of content. Last year, it broadcast the first self-made rap variety show "Rap New Generation", which was broadcast 410 million times on the site.
In addition to variety entertainment, the "Knowledge Zone" was officially launched at Station B in June last year. In the past 12 months, nearly 100 million users watched knowledge videos on Station B.
It is worth noting that automotive content has become the fastest-growing category, and the number of broadcasts in the third quarter has nearly tripled year-on-year.
According to the analysis of China Galaxy Securities Research Institute, Station B is gradually getting rid of its dependence on a single game business, and its value as a content community has gradually become prominent.
In addition, a diversified business income structure is conducive to improving the company's anti-risk ability and performance stability, and future income is expected to continue to grow at a high speed.
Station B was listed in the U.S. in 2018 and has yet to record profit.
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No profit and loss have been recorded since listing
Although the business has become more diversified, the profitability of Station B seems to be worse than every year.
In March 2018, the first financial report after listing was announced. At that time, the net loss narrowed by 14.2% year-on-year to 57.8 million yuan.
The financial report for the third quarter of 2020 shows that the net loss during the period was 1.1 billion yuan, an increase of 1.7 times year-on-year.
Even with non-GAAP calculations, the adjusted net loss is still as high as 990 million yuan, an increase of 1.88 times year-on-year.
Looking at the information, B station has been listed in the United States, and no profit has been recorded in all quarterly financial reports.
In the first three quarters of this year alone, station B has accumulated losses of 2.186 billion yuan.
The group’s most recent third-quarter performance was the quarter with the biggest loss since its listing.
Bilibili announced the launch of "Plan B", long-term hope that the brand will become the main UP on the platform.
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"Plan B" hopes brand owners to become UP owners
Although the group has yet to "stop the bleeding", investors have a lot of hope for the company.
B stood at the AD TALK 2020 marketing conference and announced the launch of "Plan B".
What is "Plan B"?
Zhang Zhendong, vice president of Bilibili, pointed out that "Plan B" is not based on product promotion, but a more visionary brand marketing. This is a co-creation of the brand owner, B station, and UP owner (uploader).
Since station B has become a powerful platform for UP owners, when users resonate with the brand through the video, the brand can download the video to the third-party e-commerce platform through the invitation function.
He also mentioned that if the brand wants to develop in station B for a long time, it can apply for the "Blue V Number" and become an UP owner.
Recently, it has been rumored that station B is deliberately involved in the payment business, and "bilibili payment" may appear in the future.
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Get involved in the payment business to push bilibili Pay?
In addition to the four major businesses mentioned above, it has recently been rumored that station B is interested in the payment business. According to internal media reports, related companies of station B have filed domain names such as "bilibilipay.com" and "bilibilipay.cn".
Although station B has not officially announced the development of payment business, reference is made to Ali, Tencent, JD.com, and even its rival Douyin, which all have the domain names of relevant payment websites.
The market believes that in addition to the purpose of protecting the brand for the registration of relevant domain names at station B, according to the practices of other companies, it is not excluded that station B will build its own payment website and launch its own "Bilibili Payment".
It is worth noting that Station B revealed some clues on both the official website and the recruitment website.
Starting from November 2020, Station B is recruiting payment product managers. The job responsibilities of the position include wallet design and overall planning of payment-related products. It can be seen that Station B intends to develop payment business.
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