Video platform Bilibili witnessed strong revenue in the second quarter of 2021 owing to the growth of its advertising and value-added business. The company has yet to turn a profit, while losses almost doubled year-on-year, according to financial results released on Thursday.
Bilibili earned a total of RMB 4.495 billion (USD 696 million) for the quarter ended June 30, an increase of 72% from the same period in 2020. The net loss was RMB 1.121 billion (USD 174 million), nearly doubling last year’s RMB 571 million.
The company witnessed unexpectedly high growth in advertising, with this segment surging to RMB 1 billion and making up nearly 25% of total revenue.
Value-added services, including membership programs and live broadcasting services, generated RMB 1.635 billion (USD 253 million), representing an increase of 98% and forming the lion’s share of the total revenue. The figure eclipsed the 2% increase in the mobile games sector.
Listed on both the Nasdaq in New York and in Hong Kong, Bilibili is roughly equivalent to a Chinese alternative to YouTube. The company now has 237.1 million average monthly active users. CEO Rui Chen said during the earnings call that he expects the figure to reach 400 million in 2023.
Bilibili launched a set of new games earlier this month even while regulations for online games are tightening. Investors expressed their worries about the potentially negative impact on the company during the call. Chen responded by saying that Bilibili will comply with all relevant rules and increase its investment in the sector as demand remains high.
The Ministry of Commerce on Wednesday began soliciting public opinions on its drafted “Livestreaming Platform Management and Service Standards,” which mandates platforms to assign ratings to livestream hosts based on their content, payment channels, age, and other qualities, as well as regulate their behaviors based on government guidelines. The draft has also triggered concerns about Bilibili’s future among investors.
The ongoing clampdown on China’s internet companies has rocked the stock market, and Bilibili has felt the pain. Its share price in Hong Kong has already plunged around 50% since June.