The performance of listed film and television companies is polarized. Wanda, Light rises, Huayi and Ali suffer huge losses.

as Tangde Film and Television released its 2016 annual report on the evening of April 24, so far, listed film and television companies, including Huayi Brothers, Light Media, Huatze Film and Television, Wanda Cinema, and Ali Pictures, have released 2016 annual reports, which are different from those in 2015. The performance of film and television listed companies shows the characteristics of polarization.

original title: the performance of film and television listed companies is polarized

the film market is gradually fading away from the bubble, on the one hand, it promotes the development of the market to be rational, on the other hand, it also allows film and television companies to usher in performance questions. As Tangde Film and Television released its 2016 annual report on the evening of April 24, so far, listed film and television companies, including Huayi Brothers, Light Media, Huatze Film and Television, Wanda Cinema, and Ali Pictures, have released 2016 annual reports, which are different from those in 2015. The performance of film and television listed companies shows the characteristics of polarization.

looking at the 2016 annual reports of the above companies, we can find that on the one hand, the net profits of Wanda Cinema, Light Media and other companies belonging to shareholders of listed companies continue to grow. On the other hand, Huayi Brothers, Alibaba Pictures and other companies reported declining performance or even losses. Among them, the net profit of Huayi Brothers, which belongs to shareholders of listed companies, fell 17.21% in 2016 compared with the same period last year, suffering the first decline in performance in eight years of listing, while Alibaba Pictures lost more than 900 million yuan.

it is worth noting that among the companies that maintain overall performance growth, there is also a slowdown in growth or a decline in revenue from its film business. Take Wanda Cinema as an example, the company's net profit belonging to shareholders of listed companies increased by 15.23% in 2016 compared with the same period last year, which was significantly slower than the growth rate of nearly 50% in 2015. In addition, Huatze Film and Television only achieved a growth rate of 0.63% in 2016, and the revenue generated by its film sales business decreased by 13.68% compared with 2015. Although the net profit of light media, which belongs to shareholders of listed companies, increased by 84.27%, the operating income of its film and derivatives business also decreased by 5.84% compared with the previous year.

from the point of view of people in the industry, at the present stage, the domestic film market still relies more on the box office as the main or even the only source of income. in view of the fact that the film market gradually entered an adjustment period last year, the growth rate of the national box office slowed down, which also affected the revenue performance of film and television companies. In order to stabilize performance, at present, more film and television companies choose to expand their business areas, extend to the upper and lower reaches of the industrial chain, and carry out multiple layouts around content copyright, among which games, variety shows and film and television towns have gradually become the standard areas of business development. and in order to expand their voice in the terminal, many content production companies have also begun to build their own cinema chains.

but through observation, it can be found that the benefits of business expansion are not stable. For example, the revenue of games and other sectors of Light Media decreased by 23.48% in 2016 compared with the previous year; the revenue of Internet entertainment sector of Huayi Brothers also decreased by 21.47% compared with the same period last year; in addition, the cinema box office of Huatze Film and Television also fell by 16.92% compared with the same period last year.

there are different opinions in the industry on the development path of diversification and the whole industry chain chosen by film and television companies. some people think that this is conducive to tapping the value of content and reducing the impact of the uncertainty of film business profits. but at the same time, some practitioners believe that it is difficult for a company to succeed in many fields, and it is better to choose only two or three in-depth layouts instead of spreading its business areas to all aspects. Xu Shan, an investment analyst, said that the risk of the film market has always existed. Although the development of the domestic film market is slowing down, there is still a lot of room for the future, and if film and television companies want to make more profits in the film market, we also need to pay attention to and dig out the value of the post-film market, and there is the possibility of obtaining income in many aspects of each film project from creation to final promotion to the market. The key lies in how the relevant companies operate each project.

Edit: nancy