Half Year 2025 Weimob Inc Earnings Call Transcript
Key Points
- Weimob Inc (FRA:36W) achieved a revenue turnaround in the first half of 2025, with a 7.8% year-on-year increase when excluding the impact of media policy changes.
- The company reported a significant improvement in gross profit, up 36% year-on-year after adjustments, due to high-quality development and phasing out low-margin businesses.
- Adjusted EBITDA reached RMB72 million, and adjusted net profit was RMB17 million, marking the first turnaround since 2021.
- AI-related revenue reached RMB34 million in the first half of 2025, indicating successful commercialization of AI products.
- Merchant Solutions revenue saw a growth of 45.3% after adjustments, with a high gross profit margin of 91%.
- Total revenue for the first half of 2025 was down 10.6% year-on-year, primarily due to changes in advertising platform rebate policies.
- Subscription revenue declined by 10.1% year-on-year, affected by the phasing out of low-margin businesses and deferred revenue impacts.
- The company faced challenges in the macroeconomic environment, leading to a contraction in consumption and potential headwinds for medium- to large-sized customers.
- Despite improvements, the company still experienced a cash outflow of RMB30 million in free cash flow for the first half of 2025.
- The advertising business faced a decrease in rebates from upstream platforms, requiring significant operational adjustments to maintain profitability.
Good evening, ladies and gentlemen. Welcome to Weimob, Inc., 2025 interim results conference call. A copy of the interim results announcement can be found and downloaded from the company's Investor Relations website. (Operator Instructions) This call will be conducted in Mandarin and English simultaneous interpretation will be provided. Please note that this conference may cover non-IFRS metrics and refer to the company's results announcement.
Joining us today on the call are Mr. Sun Taoyong, Chairman of the Board and Chief Executive Officer; Mr. You Fengchun, Executive Director and President of Weimob Group; and Mr. Cao Yi, Chief Financial Officer.
I will now turn the call over to Mr. Sun.
Investors, analysts, good evening. Now let me do a review of our company's 2025 first-half results and the second half outlook. I believe you have already read our half yearly report. So I would like to go through the salient points with you. In the past three years, all along, we
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