37 Interactive Entertainment Reaches RMB 433 Million Net Profit in Q1 2017

SHANGHAI, May 23, 2017 /PRNewswire/ -- 37 Interactive Entertainment (002555.SZ) recently presented its Q1 2017 financial report. The report shows that the company totaled revenues of RMB 1.619 billion, up 36.28% from last year, among which the total net profit of shareholders was RMB 433 million, up 104.99%.

The report also shows that 37 Interactive Entertainment's net profit in each of their last 5 quarters had a year-on-year increase of over 90%, whereas 4 of the 5 quarters even saw an increase of over 100%. The company's brilliant performance gave its share price a consistent increase, despite the grim results of the overall stock market lately.

An official at 37 Interactive Entertainment said, "As the growth of the browser-based games industry slows down, we succeeded in gaining achievements through our outstanding mobile games business." Thus far, the company's megahit Yonghengjiyuan generated revenues of up to RMB 280 million in one month, with one day even earning up to RMB 65 million in China. In overseas regions, the title also generated revenues of more than RMB 70 million in one month.

It's noteworthy that the aforementioned rapid growth of net profit was generated alongside a steady growth of revenue. 37 Interactive Entertainment made its profit margin approximately 20.13% in Q4 2016; 26.74% Q1 2017. In other words, the rapid growth of the company's net profit comes from its excellent profitability, instead of expansion or investments.

At Tencent's UP 2017 conference held on Apr. 20th, 37 Interactive Entertainment showcased their strength and resolution to further extend from browser-based games business to mobile games on their slogan "PC to Mobile, Evolve with Us". Clearly, the company intends to further deepen their mobile games strategy.

In addition, it's anticipated in the report that 37 Interactive Entertainment will have a total net profit that ranges from RMB 820 million (up 68.72%) to RMB 880 million (up 81.07%) in the first half of 2017.

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SOURCE 37 Interactive Entertainment