iDreamSky returns to profit despite revenue drop

iDreamSky Technology Holdings Limited achieved a profit of RMB33.0 million for the six months ended June 30, 2025, a significant turnaround from a loss of RMB109.3 million in the same period of 2024. Adjusted profit also increased significantly to RMB95.1 million, compared to RMB3.3 million in 2024. This positive shift occurred despite a revenue decrease of 18.9% year-on-year, reaching RMB685.8 million from RMB845.2 million in the prior year. Game revenue fell by 18.6% to RMB669.0 million.

The company's gross profit remained relatively stable at RMB289.5 million, a slight decrease from RMB291.8 million in 2024. Operating profit also saw substantial improvement, moving from a loss of RMB54.6 million in 2024 to a profit of RMB45.3 million in 2025. This was aided by a 68.2% reduction in research and development expenses and a 42.9% decrease in net finance costs.

As of June 30, 2025, total assets were RMB3,512.1 million, with total equity at RMB1,528.3 million. The gearing ratio improved to 67.1% from 75.0% in 2024.