NetDragon Websoft Holdings Full Year 2023 Earnings: Misses Expectations

NetDragon Websoft Holdings (HKG:777) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥7.10b (down 9.7% from FY 2022).
• Net income: CN¥550.0m (down 34% from FY 2022).
• Profit margin: 7.7% (down from 11% in FY 2022). The decrease in margin was driven by lower revenue.
• EPS: CN¥1.03 (down from CN¥1.54 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

NetDragon Websoft Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 27%.

The primary driver behind last 12 months revenue was the Gaming and Application Services segment contributing a total revenue of CN¥4.19b (59% of total revenue). The largest operating expense was Research & Development (R&D) costs, amounting to CN¥1.38b (36% of total expenses). Explore how 777's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Entertainment industry in Hong Kong.

Performance of the Hong Kong Entertainment industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

Before we wrap up, we've discovered 1 warning sign for NetDragon Websoft Holdings that you should be aware of.

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