Share This

Public company info - Leyou Technologies Holdings Ltd. , 01089.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Leyou Technologies Holdings Ltd., 01089.HK - Company Profile
Chairman Xu Yiran
Share Issued (share) 3,085,000,000
Par Currency Hong Kong Dollar
Par Value 0.1
Industry E-Commerce & Internet Services
Corporate Profile Business Summary: The game development and publishing business is currently the Group’s main source of revenue. Performance for the year: In 2019, the Group witnessed a certain decline in results compared to the previous year. Total revenue for the year was US$214.2 million, representing a year-on-year decrease of 5.9%. Gross profit margin reduced from 62.1% in 2018 to 56.8% in 2019, and gross profit decreased by US$19.7 million year-on-year to US$121.8 million. The Group’s EBITDA was US$49.6 million (2018: US$67.0 million), representing a year-on-year decrease of 25.9%. After excluding impairment losses and equity-settled share-based payment expenses, adjusted EBITDA only reduced slightly by 2.4% to US$83.2 million in 2019. Business Review Game Development and Publishing Business The game development and publishing business is currently the Group’s main source of revenue. As at 31 December 2019, this segment comprised several F2P online games distributed globally, as well as a series of new products in development. In terms of financial results, the revenue and profit of this segment were mainly contributed by Warframe, a flagship product of the Group. Warframe Warframe is a F2P science fiction-themed multiplayer third-person action game available on PC and consoles (including PlayStation 4, Xbox One and Switch). The game is developed and published by one of the Group’s subsidiaries, Digital Extremes Ltd. (“Digital Extremes”). It was first launched in March 2013 and celebrated its sixth anniversary during the reporting period. Since its initial launch, Warframe has been one of the most popular F2P properties worldwide, and has been striking new highs each year. Warframe steadily sits amongst the top 10 of all game genres in terms of the number of players and playtime on Steam, and has a 92% positive review score from players. Warframe is also one of the top F2P games on PlayStation 4 and Xbox One in terms of revenue. The consistent success of Warframe is attributable to the unique and strong development and publishing capabilities of the Group for F2P online games. The Group provides frequent updates of premium game content for all platforms across the world, offering efficient and timely customer services, helping build a cohesive, passionate gamer community and facilitating communications between gamers and the development team through online and offline interactions. During the reporting period, the revenue of Warframe reduced by 12.2% year-on-year, mainly driven by three reasons. Firstly, large-scale AAA games with themes and gameplay similar to Warframe were launched and endorsed by reputable game studios and publishing companies. The strong market promotion of these highly competitive new products inevitably diverted market attention from Warframe to a certain extent. Secondly, with the next-generation consoles to be released by the end of 2020, sales of current models have been declining, which contributed to a reduced number of new console players. Thirdly, due to the size and scale of development work related to Empyrean, a milestone content update for Warframe, the update cadence was temporarily affected and less new game content was released during the reporting period. Nevertheless, the Company believes that Warframe demonstrates a strong edge in the highly competitive gaming market. As the game will remain a popular F2P online game, the abovementioned factors are likely to be fleeting. Meanwhile, the management is proactively responding to the above hindrances. On one hand, the Group increased the frequency of its game updates, and further optimised the marketing channel and direction to boost product exposure. On the other hand, the Group was preparing to expand Warframe to more platforms, such as the next-generation consoles and other devices, to hedge the risk of contracting new users on consoles. The Group is confident that Warframe will enter into a new stage of development, after overcoming these temporary setbacks. In 2019, Warframe adhered to its strategy in content updates. Subsequent to the successful release of Plains of Eidolon in 2017 and Fortuna in 2018, the Group launched Empyrean, another milestone content update for Warframe. The launch of Empyrean embarked the interstellar exploration in the Warframe world. Warframe’s team has been devoting tremendous efforts in refining the concept idea and enriching the gameplay. Similar to the addition of open world environments, Empyrean will become another pillar of the Warframe experience which further expands the possibilities for players and future development. Upon winning the Steam Platinum Best-selling Game (12 games with the highest annual total revenues) and the Games with Highest Simultaneous Online Users (6 games with the highest numbers of simultaneous online users) in both 2017 and 2018, Warframe won these two top titles in 2019 again, being the only non-Valve (Steam’s developer) F2P online game with such accolades on Steam. Telltale Games The Group’s publishing subsidiary, Athlon Games, took part as a publishing partner in the revival of Telltale Games, a well-known US game brand shut down in 2018, and obtained the exclusive publishing rights of certain games, including Batman and The Wolf Among Us. As the narrative games returned to the market with high profile in 2019, the Group was honoured to participate in this meaningful deal, and launched Batman: Shadows Edition in late 2019, extending the popularity of this IP product. Endless World Endless World is a F2P idle role-playing game (“RPG”) on the Steam platform developed and published by the Group. Despite paltry marketing efforts, Endless World received nearly 80% positive review score from players and ranked among Top Sellers, and was thereby elected 2019 Game of the Year Award (New Release) on Steam. New Product Line Concurrent with the persistent quality updates and optimisation of the Group’s existing games, the Group also attaches great importance to the development of new products, by either creating original IPs or working with globally renowned ones. The Group boasts a high-caliber game design team which understands well both the fun elements brought by social interactions in video games and the healthy monetisation through game as a service (GaaS), and draws on the successful design and operational experience of Warframe from the European and American mainstream game market, combining the Group’s experienced teams with strong research and development capabilities in China, to make smooth progress in the development of new game products. During the reporting period, the Group and Amazon Game Studios entered into an agreement to co-develop and copublish a F2P massively multiplayer online game based on The Lord of the Rings. Combining the huge organic traffic of popular IP, strategic partnership with international internet titan, with the Group’s leading game development and publishing capabilities, the Group is capable to maximise the success rate of turning the new product into a blockbuster. As at 31 December 2019, besides The Lord of the Rings, the Group had Transformers, Civilization Online and multiple unannounced new products in various development stages which were progressing well. Some of these products have entered the final stage of development and are expected to be launched in 2020. Prospects: As a game changer in the global video game market, the Group is committed to providing more compelling games to a diverse user base while at the same time increasing the revenue growth momentum of the games. The Group will strive to increase the players’ engagement in and loyalty to existing major games and release more game content with higher average revenue per user. The comprehensive product line will lay a solid foundation for the Group’s profit growth in the next few years and bring better returns to its shareholders.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.