iDreamSky’s 2020 Interim Revenue Increases 11.2% to RMB1,592 million

HONG KONG, Aug 26, 2020 – (ACN Newswire) – iDreamSky Technology Holdings Limited (“iDreamSky”, or the “Group”, stock code: 1119) announced its unaudited consolidated results of the Group for the six months ended June 30, 2020. Revenue up 11.2% year-on-year to approximately RMB1,591.6 million, mainly driven by the games and information services business. As the Group putting more efforts in marketing and research and development (“R&D”), profitability was affected with net profit for the year was RMB147.9 million, and adjusted net profit was RMB215.4 million. On the other hand, the active data of casual games has increased year-on-year, the average MAUs increased from 130.1 million in 2019 to 142.0 million in 2020. Advertising revenue soared by 25%, and the monthly average ARPPU was RMB35.5.

Results Highlights:

– Revenues increased by 11.2% year-on-year to approximately RMB1,591.6 million
– Active data of casual games has increased year-on-year. Average MAUs exceeded 142.0 million, while advertising revenue soared by 25%, and average ARPPU was RMB35.5
– Revenue of matching puzzle games has been rising steadily, reflecting that the Group has established a firm foothold in this arena. With four years of matching puzzle game operation experience and joint development experience based on source code, the Group has laid a solid foundation for the self-development of this category of games
– As the Group putting more efforts in marketing and R&D, adjusted net profit for the year was RMB215.4 million
– Continues to enhance self-development capabilities and successfully launched Art of War 3 and plan to launch Super Animal Royale and Glory
– With the support of Tencent Cloud, continue to invest in cloud games to capture future growth opportunities

In the first half of the year, Cross Gate (Mobile version), the classic Japanese IP game published by Tencent, continued to contribute steady revenue, while FIFPro World Players’ Union ranked the top among the football simulation business class mobile games in China.

This year, iDreamSky has been focusing more on building research and development capabilities through long-term source code cooperation. Art of War 3 is the result of this strategy, and another masterpiece of the Group in partnership with Tencent Games. It had attracted over one million players for registration before its launch, and rose to TOP1 on the IOS free list on the first day of launch. According to the latest data, the game has a daily active users (DAU) of several hundred thousand, ranking number one in the RTS category. In the first half of the year, revenue of matching puzzle games has been rising steadily, reflecting that the Group has established a firm foothold in this arena. With four years of matching puzzle game operation experience and joint development experience based on source code, the Group has laid a solid foundation for the self-development of this category of games

The Group’s flagship games Gardenscapes and Homescapes are very popular in the domestic market. During the epidemic in the first half of the year, the active users and revenue data of the game reached a record high. In addition, the Group integrated the Palace Culture of the Palace Museum to create a new version of the game: Gardenscapes – Imperial Garden of the Forbidden City. The successful launch of the new version has led to a simultaneous surge in reputation and popularity of the game, with new players and returning players reaching new highs in recent years.

The offline business, “Tencent Video Great Moment Voyage” entertainment block, is the first experiential entertainment retail block in China. It can be clearly seen that since the end of March, when the epidemic eased and the country gradually resumed work and production, the profitability and traffic of offline stores of the Group increased significantly against the market trend.

Expand the High-Quality Content Matrix
Looking forward to the future, the Group will continue to expand the high-quality content matrix by means of self-development and licensing games from content providers, especially by introducing overseas high-quality PC, console or mobile games and redeveloping them through the secondary development of the Group’s R&D team into mobile games suitable for global release on the source code level.

In addition to the Art of War 3, the Group also plan to launch a series of high-quality games such as Super Animal Royale in the fourth quarter of 2020 and Glory. Super Animal Royale is the first 2D cartoon style competition mobile game created by iDreamSky, which perfectly inherits the chicken-eating gameplay and world outlook of the client game Super Animal Royale.

Embrace the Cloud Gaming Wave
The Group believe that the deep integration of 5G technology and cloud computing technology will promote disruptive changes in the game industry and bring new development opportunities for the industry. iDreamSky has been committed to working with strategic partners in the industry to explore and build a new ecosystem of the cloud game industry and stimulate the innovation and vitality of cloud games.

Recently, based on the cloud game solutions of Tencent Cloud, iDreamSky has begun the cloud testing of its games, laying a foundation for the subsequent comprehensive cloud operation. In addition, the two sides will jointly explore and develop new entertainment scenarios such as live broadcast interaction, further expand cross-terminal and cross-scene game content services, and broaden the boundary of the cloud game industry.

With the support of its strategic partner Tencent Cloud, iDreamSky will continue to invest in the research and development, release and strategic investment of high-quality content related to cloud games, enhance the multi-terminal operation capacity relying on rich experience in multi-category game operation and mature operation teams, and continue to integrate high-quality content resources around the world, so as to build its unique content advantages and create innovative experience of content-based cloud games. At present, iDreamSky has reserved a number of cloud-capable games, and is bound to create a broader blue sea of cloud games in the future.

About iDreamSky Technology Holdings Limited
iDreamSky, as a digital entertainment platform in Mainland China, deeply integrates online and offline channels, digital retail, culture and technology, developing a new entertainment ecosystem featuring online games, physical entertainment, neo-culture creativity and internet services to enable users to enjoy exceptional entertaining experience anytime and anywhere.

For game publishing, iDreamSky successfully launched Temple Run and Gardenscapes through iDreamSky Games; for physical entertainment, it has established the first neo- entertainment complex “Great Moments Voyage”; for neo-culture creativity, it published the original comics The Way From Zero to One and Me, The Almighty God. The Company also self-developed high quality titles like Cross Gate and FIFPro World Player’s Union, in which iDreamSky act as the content provider. Through refined game operations based on source codes and domestic know-hows, iDreamSky is able to prolong game life cycles drastically, thus deriving more LTV from customers. iDreamSky was listed on the main board of the Hong Kong Stock Exchange on 6 December, 2018. The Group is the constituent stock of the MSCI China All Shares Small Cap Index.