Hunan Radio and Television announced that it is expected that mango TV will make a profit of 400-500 million yuan for the whole year.

Lu Huanbin, director of Hunan Radio and Television Station, said publicly on November 30th that mango TV is expected to make a profit of 400 million to 500 million yuan for the whole year.

original title: why the first echelon General loss Mango TV announced profits

the operation of domestic video websites seems to have been equated with "loss". But at a time when a number of first-tier video sites are still losing money, mango TV announced a profit. Lu Huanbin, director of Hunan Radio and Television Station, said publicly on November 30 that mango TV is expected to make a profit of 400 million to 500 million yuan for the whole year. So, what is the reason for mango TV, which ranks second in the industry, to take the lead in breaking through the profit bottleneck of the video industry?

in recent years, the video website industry in China has developed rapidly. The number of users of Mango TV, which is operated by Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd. (hereinafter referred to as "Happy Sunshine"), is also increasing. Data show that since Mango TV launched the solo broadcast strategy in 2014, the number of mobile users has grown from zero to 500 million, IPTV operators have covered more than 55 million users, and the number of Internet TV terminal active users has reached 65 million. Although the number of mango TV users is higher than that of two or three years ago, compared with iqiyi, Tencent Video and Youku, the number of mango TV active users is still in the scale of 10 million, compared with more than 200 million App active users a month.

although Mango TV still ranks second in the industry in terms of the number of active users, with the asset restructuring of Happy Sunshine and other five companies planning to merge into Happy Buy once again, a series of performance data have been made public, the performance of Mango TV has been highly concerned by the industry.

Public data show that in 2015 and 2016, Happy Sunshine's operating income increased from less than 1 billion yuan to nearly 2 billion yuan, but it has been in a state of loss, with net profits of-940 million yuan and-694 million yuan respectively. 2017 marked a turning point in performance, with operating income of 1.38 billion yuan and net profit of 158 million yuan in the first half of 2017. This performance also led Mango TV CEO Cai Huaijun to describe Mango TV with the 12 words "the fourth in the industry, the first to make a profit, and soon to be listed on the market" at the Mango TV 2018 Advertising Merchants' Beijing Station.

in contrast, other domestic video websites have not made a profit for a long time. Take iqiyi as an example. Public data show that from 2013 to 2016, iqiyi lost a total of 7 billion yuan, and the loss increased year by year, from 743 million yuan in 2013 to 2.77 billion yuan in 2016. At the same time, it can be found from Alibaba's financial report that the digital entertainment business, including Youku, still has a loss of more than 3 billion yuan every quarter. In addition to the losses of the first echelon video sites, the video sites in the bottom position are no exception. For example, the net profit of Station A lost 113 million yuan in 2015 and 146 million yuan in January-September 2016, respectively.

however, according to industry insiders' analysis, at present, the domestic online video industry is still in the fighting stage of market share, and front-line platforms such as Youku, iqiyi and Tencent Video do not seek to make a profit, especially relying on the three giants of BAT, and we are not short of money. For example, Alibaba Cultural Entertainment has repeatedly said that "Youku is a 'rich daughter'", so the relatively small mango TV is the first to announce profits or has its own purpose.

at this stage, mango TV is on the road to its own listing. In early June this year, Happy Buy announced that it was planning asset purchases and revealed that the underlying assets to be purchased in this transaction include all or controlling stakes in five companies controlled by Hunan Radio and Television, which is the same actual controller of the company. These include Happy Sunshine, Tianyu Media, Mango Entertainment, Mango Film and Television and Mango Mutual Entertainment. According to the transaction plan released by Happy Shopping since then, the total value of the merger is about 11.55 billion yuan. In the view of Wei Pengju, dean of the Institute of Culture and Economics of the Central University of Finance and Economics, this merger is a kind of integration of resources. Hunan Radio and Television regulates the diversified enterprise content through capital operation, which simplifies the management procedure of Hunan Radio and Television. It is conducive to further becoming bigger and stronger.

and in this reopened transaction, Mango TV's position is not to be underestimated. Data show that in the five target companies with a total transaction value of 11.55 billion yuan, the purchase consideration of Happy Sunshine is 9.53 billion yuan, accounting for more than 80%. And public information shows that after the completion of this transaction, the main business of Happy purchase will be expanded from media retail business to new media platform operation, new media interactive entertainment content production and e-commerce industry chain.

from this point of view, mango TV plays an important role in the overall structure of Happy purchase reorganization. The profit of mango TV also means that the merger is another step towards success.

Edit: mary