Finance Association, January 23 (Reporter Huang Lu) Q4 membership revenue and advertising revenue achieved double growth. Mango Supermedia (300413.SZ)'s Q4 revenue growth rate corrected, and net profit for the full year of 2023 increased by more than 70%. The company said that with the support of high-threshold video content, effective membership reached a record high at the end of the year; the advertising business picked up in Q4, and the annual decline in advertising business revenue was significantly narrower than in the first half of the year.

This evening, Mango Supermedia released a performance forecast. The company expects to achieve net profit of 3.28 billion yuan to 3.88 billion yuan in 2023, an increase of 75.94% to 108.12% over the previous year; total revenue for the whole year is expected to increase by about 4.5% year on year. Among them, total revenue for the fourth quarter is expected to increase by more than 20% year-on-year and month-on-month.

It is worth mentioning that the company's net profit after deduction was 1.62 billion yuan to 1.82 billion yuan, an increase of 2.05% to 14.65% over the previous year. If net profit is estimated at the lower limit of expected net profit before and after deduction, then about half of net profit (not before deduction) comes from non-recurring profit and loss.

Mango Supermedia said that according to the “Notice Concerning the Tax Policy on Continuing Implementation of the Cultural System Reform in Cultural System Reform” issued by the relevant departments in October 2023, the company expects the applicable income tax policy to change in the future. According to corporate accounting standards and relevant provisions of the tax law, it is estimated that in 2023, the net amount of deferred income tax assets can be confirmed to be about 1.4 billion yuan to 1.8 billion yuan, and current corporate income tax expenses of -1.4 billion yuan to -1.8 billion yuan will be included in a one-time adjustment to current profit and loss in 2023 to be included in non-recurring profit and loss (1.4 billion yuan to 1.8 billion yuan).

Judging from the core business structure of Mango Supermedia, advertisements, members, and operators, as important monetization channels for long video content, form the “troika” of Mango TV's Internet video business.

According to the announcement, with the recovery of the advertising business, the company's advertising revenue for the fourth quarter is expected to increase by 18% year on year, and the year-on-year decline in advertising business for the whole year is expected to be within 12%, which is significantly narrower than in the first half of the year.

In addition, the company's membership revenue for the fourth quarter is expected to increase 33% year on year, annual membership revenue is expected to increase 11% year on year, and the number of active members at the end of the year reached 66.53 million. The company expanded channel growth in the second half of last year through cooperation projects such as 88VIP and Mobile Mango Card, which boosted the number of members.

Last year, the company completed the acquisition of Golden Eagle Cartoon and improved the content layout. According to previous performance promises, Golden Eagle Cartoon's net profit for 2023 will not be less than 46.2538 million yuan. The company expects Golden Eagle Cartoon to successfully complete its 2023 performance promise.

Earlier, the four Mango platforms formed by Hunan TV, Mango TV, Golden Eagle Cartoon, and Xiaomang E-commerce jointly held an investment fair for the first time to release over 100 major Mango variety shows, 80 key TV series, and content such as animations, documentaries, and galas.

Mango is expected to launch more than 50 new variety shows this year, including leading “N Generation” IPs such as “Endless Sound: China Season”, “Detective 9,” “Ride the Wind 2024,” and “Throw Away 4,” as well as the musical competition reality show “The Singer 2024,” which will restart again after three years and usher in a new “international version” upgrade. According to the company's official Weiwei, the four new Mango platforms will further expand production capacity for premium content, and the population coverage will also expand from young people to all age groups.