Half Year 2024 NetDragon Websoft Holdings Ltd Earnings Call Transcript
Key Points
- NetDragon Websoft Inc (FRA:3ND) reported an increase in gross profit margin from 62% to 66.6%.
- The company has implemented significant cost-saving measures, resulting in a 20% decrease in sales and marketing expenses year over year.
- NetDragon Websoft Inc (FRA:3ND) saw a positive growth in EBITDA by 12.9%, and non-GAAP EBITDA increased by 33%.
- The company is optimistic about the future of its gaming business, particularly with the release of the new game 'Wukong'.
- NetDragon Websoft Inc (FRA:3ND) is focusing on transitioning from a hardware-centric model to a software and services-based model, which is expected to drive future growth.
- NetDragon Websoft Inc (FRA:3ND) experienced a decrease in revenue for Mynd.ai, its education segment, due to inflation and economic downturns in key markets like the US and Europe.
- The company faced short-term challenges in its overseas gaming segment, leading to a material decrease in revenue.
- There was a one-time deferred tax provision of approximately USD 40 million, impacting the net profit attributable to the owners of the company.
- The overall gaming spending growth was modest, with the industry experiencing only a 2% growth in the first half of the year.
- NetDragon Websoft Inc (FRA:3ND) reported a 23.5% decrease in revenue for Mynd.ai, attributed to normalization of demand post-COVID and inflation affecting school budgets.
Ladies and gentlemen, our presentation will start very soon and it will be also live streamed on Roshi China, Futu, and Tiger platform. Presentation PowerPoint is currently available under the Webcast, News, and Events tab on NetDragon's IR website. (Operator Instructions)
(interpreted) Good morning. Thank you for joining us for NetDragon Websoft Holdings Limited today for our 2024 interim results presentation. First, please allow me to introduce the managements who are joining us today: Dr. Simon Leung, Group Vice Chairman and Executive Director; Mr. Ben Yam, Group CFO; Mr. Lin Chen, Group Senior Vice President.
Now, please allow me to pass the time to Dr. Simon Leung.
Okay, thank you. Good morning. No, no, no, that's not what I was expecting. Sorry I have to get you working on a Friday, I guess. But anyway, it's good to be here.
Actually, I'm going to take you through some so-called highlights. Well, it's an eventful year for us. It's actually
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