Bilibili (BILI, Financial) saw a 4.5% rise in its pre-market trading, reaching $22.99. This increase is fueled by the anticipation of its upcoming third-quarter 2024 earnings release. Analysts from Bank of America express optimism, suggesting that Bilibili's performance might surpass predictions, with a positive outlook for the fourth quarter. The company’s core business activities are reportedly making strong progress.
A key driver of Bilibili's growth is the successful performance of its new game, "Three Strategies," which has bolstered its gaming segment significantly. Despite a challenging macroeconomic environment affecting many peers, Bilibili's advertising sector is expected to maintain positive momentum in the latter half of the year, with a projected growth of 25% year-on-year.
Citi analysts anticipate that the company’s revenue and adjusted earnings will align with market expectations. Success from the game "Three Kingdoms: Strategic World" in the second and third quarters is predicted to boost game revenues by 67% year-on-year in the third quarter. Continuing improvements are expected to drive advertising momentum into the third quarter, with further gains into the fourth quarter.
China Merchants Securities International has raised Bilibili's third-quarter revenue forecast by 1% to RMB 7.3 billion, citing the better-than-expected performance of "Three Strategies." They also anticipate the company's gross profit margin to increase by 9 percentage points year-on-year, reaching 34%.
