China's Bilibili Q4 profit jumps as revenue increases, costs drop

Overview

• China video platform's Q4 revenue rose 8% yr/yr, driven by advertising growth

• Q4 net profit surged 478% yr/yr, adjusted net profit up 94%

• Gross profit margin improved to 37% from 36.1% in Q4 2024

Outlook

• Bilibili expects AI to reshape content creation in 2026

• Company aims to drive sustainable growth in 2026

• Bilibili plans to allocate capital to support future growth

Result Drivers

• ADVERTISING GROWTH - Advertising revenues increased 27% yr/yr due to improved product offerings and efficiency

• COST CONTROL - Sales and marketing expenses decreased 9% yr/yr, aiding profitability

• MOBILE GAMES REVENUE DECLINE - Revenues from mobile games decreased 14% yr/yr due to high prior-year comparison

Company press release: ID:nGNX78Lmgq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Bilibili Inc is HK$242.00, about 14.9% above its March 5 closing price of HK$210.60

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

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