Zhitong Finance learned that on November 20, Betta released an unaudited financial report for the third quarter of 2024. This quarter, Betta relied on a rich game content ecosystem to give full play to anchor resources and new business potential, continue to provide users with high-quality live streaming content and game services, and further diversify the platform's revenue.

In the third quarter, the average quarterly MAU of Betta Mobile was 42.1 million, and the average number of quarterly paid users was 3.4 million. Total revenue was 1.063 billion yuan, achieving month-on-month growth for the first time in eight quarters. Live streaming revenue was 0.752 billion yuan, gross profit was 60.8 million yuan, gross profit margin 5.7%, and net profit was 3.4 million yuan. Among them, innovative business, advertising and other revenue achieved steady growth, reaching 0.311 billion yuan, a significant increase of 49.4%. Revenue contribution accounted for 29.3%, a significant increase from 15.3% in the same period in '23.

The Betta Interim Management Committee said, “In the third quarter of 2024, we actively adjusted the company's operating strategy to respond flexibly to changes in the external environment, and firmly implement the long-term development strategy of the 'game-centered diversified content ecosystem platform'. On the one hand, we focused on the company's core strengths to strengthen commercialization capabilities, and on the other hand, we optimized operating methods to improve the investment ratio of the business and coordinate platform resources to improve operational efficiency. At the same time, we continue to invest in anchor resources and new businesses, and continue to provide users with high-quality content and rich game-related services through content creation and product upgrades. In the face of changes in the macro environment and industry fluctuations, our primary goal is to stabilize the basic market of the business, balance the development of traditional and new businesses, and allocate resources in an orderly manner to optimize the platform ecosystem, so as to achieve the long-term sustainable development of the company.”

Summer gaming and e-sports content exploded centrally, and the game content ecosystem continued to be optimized

This quarter, in conjunction with the summer season, Betta invested in an orderly manner around anchor resources and advantageous businesses. The number of platform e-sports copyright contests and homemade events increased markedly, continued to output high-quality content and game-related services, and continuously optimized the platform's game content ecosystem.

In terms of copyright tournaments, Betta has broadcast nearly 70 major official events, including the 2024 League of Legends World Finals (S14), League of Legends LPL playoffs, Wang Zhe Rongyao KPL Summer Tournament, CROSS FIRE CFPL Summer Tournament, Peace Elite PEL Spring Tournament, CSGO Blast Fall Tournament, EWC E-sports World Cup, and exclusive broadcast of CSGO's XSE Asia Pro League (XSE Pro League). Based on this content, Betta continued to innovate derivative content. During the EWC eSports World Cup, it launched operations covering several mainstream e-sports game divisions, and created special program content around the anchor's personal characteristics, such as anchor Vlog+ live streaming, anchor outdoor program+tournament explanation, anchor acting as competition guide, and celebration programs for participating anchors after winning awards.

In terms of homemade tournaments, Betta hosted a total of nearly 80 platform e-sports events, covering various game divisions such as League of Legends, Wang Zhe Rongyao, Genting Game, and DNF Mobile Games. Among them, there was no shortage of cooperative events launched by cross-platform content co-creation partners, which relied on the platform's unique superior resources. For example, League of Legends's “Time Cup” brings together popular League of Legends anchors and professional players from the past ten years. It uses a novel “no ban card” battle format, preserves the characteristics of the anchor's gameplay, and the flexible tournament mechanism has been recognized by a wide range of users and has sparked widespread discussion. The tournament not only continued the popularity of previous cooperative tournaments, boosted the return of tournament users, but also boosted the popularity of anchors and further optimized the ecology of the game division.

Combining the peak of summer traffic and the pace of game product promotion, Betta's major game divisions have created various live streaming events one after another. Wang Zhe Rongyao Division launched content such as the “Ten Successive Peerless Live Streaming Challenge” for the new 10v10 game model. Leading anchors such as Dream Fei and Tuomi contributed exciting live broadcasts. During the KPL Betta theme week, the platform launched interactive interviews with major anchor guests, as well as offline events such as anchor cheering and team home days. The leading anchors of the Game Division and the Entertainment Division participated in the “Betta Party Game Carnival” together. By combining anchor resources with zoning operations, we have created a summer content experience unique to Betta for users through a series of live streaming events that are both interactive and platform benefits.

Revenue growth from innovative businesses, advertising and other sources is steady, and revenue diversification is progressing well

In the third quarter, Betta focused on leveraging the platform's core advantages, gradually adjusting the business model, optimizing resource allocation, and promoting revenue diversification. Innovative business, advertising and other revenue achieved steady growth, reaching 0.311 billion yuan, accounting for 29.3% of revenue contributions, a significant increase from 15.3% in the same period in '23.

Based on the platform's powerful tournament content matrix, Betta strengthened the commercialization of tournament content this quarter. The game membership business promoted in the Peace Elite PEL official tournament and item promotion activities carried out during the live broadcast room of the CrossFire official tournament achieved good results. In addition, the platform's game item commercialization activities promoted in homemade events such as the CrossFire Betta Commentary Cup and the cooperative tournament Gun King Cup have also effectively improved the commercial monetization efficiency of game content.

In addition to the commercial content of the tournament, Betta continues to use platform resources to help promote the game. Focusing on the blockbuster game “Black Myths: Goku”, which was launched in August, Betta made full use of the platform's deep mobile game anchor resources to produce high-quality live streaming content as soon as possible. On the first day of the game's launch, Betta's Black Myth Division accounted for 23% of the total number of anchors running for 2 hours. Platform benefits, game guides, interactive challenges, etc. also greatly enriched the initial content supply of the game. While boosting the volume of game launches, it also effectively boosted the addition and return of Betta users. On the same day, nearly half of Betta Daily Active users watched game-related content. Betta has also tailored rich platform promotion content for the public beta of different game products such as “Everlasting Mobile Game”, “Need for Speed”, and “Unrestricted”, and the return of the “Hearthstone” national uniform to help the product directly reach the player community.

In terms of commercialization based on game items, Betta continues to explore game item sales activities including an annual joint promotion model, game membership business, and multi-platform marketing activities. The annual big promotion joint promotion model involves platform anchors, focusing on the fun of marketing activities and platform benefits, and is widely promoted using cross-platform promotion channels; the game membership business combines game items and platform benefits to form a stable business model in multiple divisions; the multi-platform marketing campaign is embedded in the game manufacturer's game item mall in Betta Live and promoted through platform content promotion and anchor marketing. This quarter, Peace Shop, Fearless Store, Genting Store, etc. have continued to operate, attracting players to continue to spend. Through various marketing activities that meet manufacturer promotion and players' consumption needs, Betta has become an important platform for players to consume game items.

Platform supervision is further strengthened, and corporate social responsibility is actively implemented

This quarter, Betta continued the “Four in One” (business compliance, content compliance, process compliance, and data compliance) compliance system, continued to improve the platform compliance system, and strengthened self-inspection and standardized management in terms of compliance. Currently, Betta has launched the Anchor Learning Center, adding a learning credit mechanism to encourage anchors to actively learn the platform's live streaming standards, and further strengthen anchor compliance training. The platform also continues to carry out ecological management and regularly carries out “clean action” to crack down on illegal and illegal content such as internet fraud, online gambling, private transactions, vulgar pornography, illegal external links, and illegal audio and video.

Betta has also fully mobilized corporate resources, taken the initiative to assume social responsibility, and carried out a number of social welfare activities with anchors. In July, Betta went to Taijiang County in Guizhou Province with anchor Yu Shen to carry out a four-day “2024 Yujia 6512 Caring Student Aid Charity Campaign” to donate materials to local elementary schools in mountainous areas. In September, Betta invited players from the Shenzhen DYG e-sports team to Yuzhong County in Gansu Province to participate in the “Embrace Rural Aesthetic Education Program” to create paintings with the children and call on the public to pay attention to rural aesthetic education. Betta also participated in the 2024 “Sui Ai Peers · Mid-Autumn Festival Dream Operation” as a caring company. Anchor Xiao Shujie rushed to Guangzhou to become a caring volunteer to send Mid-Autumn Festival wishes to needy children, migrant children, left-behind children and their families. Betta also won the “China Economic Youth Protection Mechanism Linkage Outstanding Case” award from the “China Business Daily” in September, and was recognized by the outside world in the field of social welfare.

Looking back on the third quarter, Betta actively responded to the challenges faced by the company. On the one hand, it steadily promoted revenue diversification strategies and improved revenue structure, and on the other hand, it reduced costs by adjusting operating strategies and optimizing resource allocation. On the basis of maintaining the strategic direction of the “game-centered diversified content ecosystem platform”, balance the development of traditional and new businesses, coordinate and match the company's resources, stabilize the basic market of the business, and continue to invest in new businesses with potential for growth. We believe these initiatives can lay a solid foundation for the company's long-term sustainability, which in turn creates long-term value for shareholders.