Beijing, China – Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) is a leading mobile entertainment operator in China. Glory Star’s ability to integrate premium lifestyle content, including short videos, online variety shows, online dramas, live streaming, its Cheers lifestyle video series, e-Mall, and mobile app, along with innovative e-commerce offerings on its platform enables it to pursue its mission of enriching peoples’ lives. The company’s large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.
On February 15th TKK Symphony Acquisition Corporation, a special purpose acquisition company, announced closing a share exchange agreement pursuant to which TKK acquired Glory Star in a Business Combination. TKK changed its name to “Glory Star New Media Group Holdings Limited” or GSMG, trading on the high profile NASDAQ exchange. Prior to this in 2018, the original IPO generated gross proceeds of $220,000,000 for the company.
The potential maximum value of this transaction is approximately $525,000,000, including approximately $100,000,000 in earnout shares. To further the high earnings power here, GSMG management remains committed to its successful strategy of integrating premium lifestyle content with innovative e-commerce offerings to benefit from the growth of consumerism in China.
On March 31st GSMG announced financial results for the full year ended December 31, 2019.
Highlights of this report included:
Downloads of the CHEERS App1 exceeded 85 million for the year ended December 31, 2019, compared to 12 million for the year ended December 31, 2018.
Average daily active users (“DAUs”)2 of the CHEERS App increased to 1.9 million from 0.4 million in the full year of 2018.
Glory Star’s e-Mall sold over 13,180 Stock Keeping Units (“SKUs”), recording over RMB133.76 million (US$19.36 million) in gross merchandise value (“GMV”) 3 through its CHEERS App in the same period.
Revenues increased by 16.7% to US$65.8 million from US$56.4 million in the full year of 2018.
Income from operations increased by 94.4% to US$26.8 million from US$13.8 million in the full year of 2018.
Operating margin expanded to 40.8% from 24.5% in the full year of 2018.
Net income attributable to Glory Star’s shareholders increased by 94.5% to US$26.3 million from US$13.5 million in the full year of 2018.
Net margin expanded to 40.0% from 24.0% in the full year of 2018.
These robust financial and operating results were driven by the GSMG innovative business model, increasingly competitive value propositions, and ability to capitalize on the growing market opportunity. GSMG remained committed to bolstering production capabilities for tailored content and increasing collaborations with experienced producers to develop popular network dramas. Notably, by leveraging professionally-generated content, GSMG has attracted an increasing number of users to its CHEERS App, as evidenced by the sevenfold increase in CHEERS app downloads on a year-over-year basis and the 365.9% growth in DAUs for 2019. As a result of such improvements, GSMG significantly increased the GMV for its CHEERS App during the full year of 2019.
On May 11th GSMG announced its financial results for the first quarter ended March 31, 2020.
Downloads of the CHEERS App1 exceeded 100.5 million as of March 31, 2020, compared to 17.2 million as of March 31, 2019.
Average daily active users (“DAUs”)2 of the CHEERS App increased to 4.1 million from 0.5 million in the same period of 2019.
The Company’s e-Mall carried over 9,602 Stock Keeping Units (“SKUs”) as of March 31, 2020, and recorded over RMB40.6 million (US$5.8 million) in gross merchandise value (“GMV”)3 through its CHEERS App in Q1.
Revenues were US$9.8 million as compared to US$13.8 million in the same period of 2019.
Income from operations was US$2.9 million as compared to US$4.4 million in the same period of 2019.
Operating margin reduced to 29.7% from 32.3% in the same period of 2019.
Net income attributable to Glory Star New Media Group Holdings Limited’s shareholders was US$2.9 million as compared to US$4.1 million in the same period of 2019.
Net margin was 29.1% as compared to 30.1% in the same period of 2019.
Despite the COVID-19 outbreak, GSMG delivered a solid operating performance, advanced its flagship e-commerce platform, and drove user base growth. GSMG maintained content leadership by focusing on the creation of original, professionally produced content in the areas of lifestyle, culture, and fashion. As such, GSMG continued to have success in converting content viewers into CHEERS App users, which was illustrated by an excess of 100.5 million CHEERS App downloads, in total, as of March 31, 2020, compared to 17.2 million CHEERS App downloads, in total, by the end of the prior-year period.
Company Name: GLORY STAR NEW MEDIA GROUP HOLDINGS LIMITED
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