You are here
GSMG Glory Star New Media Group Holdings Limited Returns Strong Financial Results from its Premium Entertainment Services in China; Company IPO Previously Generated $220 Million
To further the high earnings power here, GSMG management remains committed to its successful strategy of integrating premium lifestyle content with innovative e-commerce offerings to benefit from the growth of consumerism in China.
- Innovative Leading Entertainment Provider for China.
- Variety of Premium Content Including Popular Cheers Lifestyle Series.
- Enhanced Platform Stickiness with Thousands of Brand Names.
- Strong Financial Results Being Reported for 2019 and 2020 to Date.
- Initial IOP Generated $220,000,000 in Gross Proceeds for the Company.
Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) is a leading mobile entertainment operator in China. Glory Star’s ability to integrate premium lifestyle content, including short videos, online variety shows, online dramas, live streaming, its Cheers lifestyle video series, e-Mall, and mobile app, along with innovative e-commerce offerings on its platform enables it to pursue its mission of enriching peoples’ lives. The company’s large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.
- TKK Symphony Acquisition Corporation and Glory Star New Media Group Limited Complete Business Combination to Create GSMG
On February 15th TKK Symphony Acquisition Corporation, a special purpose acquisition company, announced closing a share exchange agreement pursuant to which TKK acquired Glory Star in a Business Combination. TKK changed its name to “Glory Star New Media Group Holdings Limited” or GSMG, trading on the high profile NASDAQ exchange. Prior to this in 2018, the original IPO generated gross proceeds of $220,000,000 for the company.
The potential maximum value of this transaction is approximately $525,000,000, including approximately $100,000,000 in earnout shares. To further the high earnings power here, GSMG management remains committed to its successful strategy of integrating premium lifestyle content with innovative e-commerce offerings to benefit from the growth of consumerism in China.
- Strong Full Year 2019 Financial Results
On March 31st GSMG announced financial results for the full year ended December 31, 2019.
Highlights of this report included:
Downloads of the CHEERS App1 exceeded 85 million for the year ended December 31, 2019, compared to 12 million for the year ended December 31, 2018.
Average daily active users (“DAUs”)2 of the CHEERS App increased to 1.9 million from 0.4 million in the full year of 2018.
Glory Star’s e-Mall sold over 13,180 Stock Keeping Units (“SKUs”), recording over RMB133.76 million (US$19.36 million) in gross merchandise value (“GMV”) 3 through its CHEERS App in the same period.
Net income attributable to Glory Star’s shareholders increased by 94.5% to US$26.3 million from US$13.5 million in the full year of 2018.
Net margin expanded to 40.0% from 24.0% in the full year of 2018.
- Continued Success Shown in First Quarter 2020 Financial Results
On May 11th GSMG announced its financial results for the first quarter ended March 31, 2020.
Downloads of the CHEERS App1 exceeded 100.5 million as of March 31, 2020, compared to 17.2 million as of March 31, 2019.
Average daily active users (“DAUs”)2 of the CHEERS App increased to 4.1 million from 0.5 million in the same period of 2019.
The Company’s e-Mall carried over 9,602 Stock Keeping Units (“SKUs”) as of March 31, 2020, and recorded over RMB40.6 million (US$5.8 million) in gross merchandise value (“GMV”)3 through its CHEERS App in Q1.
Revenues were US$9.8 million as compared to US$13.8 million in the same period of 2019.
Income from operations was US$2.9 million as compared to US$4.4 million in the same period of 2019.
These robust financial and operating results were driven by the GSMG innovative business model, increasingly competitive value propositions, and ability to capitalize on the growing market opportunity. GSMG remained committed to bolstering production capabilities for tailored content and increasing collaborations with experienced producers to develop popular network dramas. Notably, by leveraging professionally-generated content, GSMG has attracted an increasing number of users to its CHEERS App, as evidenced by the sevenfold increase in CHEERS app downloads on a year-over-year basis and the 365.9% growth in DAUs for 2019. As a result of such improvements, GSMG significantly increased the GMV for its CHEERS App during the full year of 2019.