State-backed Mango Excellent Media reported strong profit growth in the first half of 2019 on the back of rapid expansion in its online video business.
Mango, which is the listed arm of provincial network Hunan Broadcasting System, raked in 804 million yuan in profit in the first half, up 40.3% from a year ago, while booking revenue of 5.5 billion yuan, according to a stock exchange filing Friday. The company attributed a slowdown in revenue growth to industry and regulatory changes.
Revenue from Mango’s online video business in particular increased nearly 80% to 2.5 billion yuan during the first half.
The operating entity of Mango’s video and broadcasting unit Mango TV brought in 4 billion yuan in revenue in the first half, with 62% and 136% year-on-year growth in its advertising and membership sectors respectively.
At the same time, Mango TV’s paying users grew 4.3 million from the same period last year to 15 million.
As the agency behind many of China’s most popular entertainment programs, Mango has attracted investors including subsidiaries of China Mobile and China Life Insurance. Mango said it would diversify its revenue portfolios by increasing its focus on income from contracted performers and content licensing.
Mango’s Shenzhen-listed shares rose 4% on Friday.