Maoyan entertainment sees profit decline amidst market downturn, increased costs

Maoyan Entertainment reported a decrease in net profit for the first half of 2025, falling to RMB178.5m from RMB284.8m in H1 2024. Gross profit also declined from RMB1,156.2m in H1 2024 to RMB936.5m in H1 2025, with the gross margin dropping from 53.3% to 37.9%. This downturn is attributed to an increase in cost of revenue, which rose by 51.3% to RMB1,535.7m. Despite the challenging market, total revenue increased to RMB2,472.2m in H1 2025 from RMB2,170.9m in H1 2024, driven by growth in entertainment content services and online entertainment ticketing.

The company's adjusted EBITDA for H1 2025 was RMB333.0m, down from RMB489.7m in H1 2024, while adjusted net profit decreased to RMB235.0m from RMB351.8m. The film market experienced a significant downturn from March to June 2025, with a 33.68% year-on-year decrease in total box office during that period. In contrast, the offline performance market maintained high popularity. Maoyan Entertainment continued to lead in promotion and distribution services and is expanding into IP derivative businesses and AI technology applications.