Maoyan Entertainment, an entertainment services provider in China, has witnessed a decrease in its annual financial reporting in 2022, as the country continued to be affected by COVID-19 restrictions.
Revenue decreased from RMB 3.3bn (£393m/€450m/$480m) in 2021 to total RMB 2.3bn in 2022, while gross profit was also down from RMB 1bn compared with RMB 1.8bn in 2021. Profit saw a decline from RMB 368m in 2021 to RMB 104m in 2022, while adjusted EBITDA amounted to RMB 320m compared to RMB 743m in 2021.
Adjusted net profit totalled RMB 233m compared to RMB 540m in 2021.
A release noted that continued ‘risks and challenges caused by the pandemic’ were behind the downturn.
The company said: “During 2022, the entertainment industry continued to face complex situation and the various related risks and challenges caused by the pandemic.
“According to statistics from the China Film Administration, the total box office (including service fees) of Mainland China in 2022 was RMB 30bn, representing a year-over-year decrease of 36.38% from RMB 47bn in 2021. Furthermore, the live entertainment market was also significantly affected.
“For instance, according to the relevant market data released on the official website of the China Association of Performing Arts, nearly 9,000 performances were cancelled or postponed nationwide in the first quarter of 2022, and the total number of performances decreased by approximately 80% at the box office during the Labor Day holiday.”
Maoyan also reported that its online movie ticketing services business remained competitive in 2022. It launched a number of marketing functions such as family ticket packages and cinema combo deals to meet different demands of users.
“In 2022, we continued to invest in and develop live entertainment services, including online ticketing services, and actively explored and developed investments in the production of and IP development for live entertainment events,” added Maoyan.
“During the reporting period, we also actively addressed the needs of the whole industry and constructively contributed to its recovery by providing complete sets of smart venue ticketing system solutions to nearly 200 emerging small and medium-sized venues across the country.”