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Bilibili’s shares declined after the Chinese video-sharing platform reported a 12% decrease in its first-quarter revenue from mobile games compared to the same period last year, raising investor concerns that revenue growth may be slowing down.
The company’s stock closed down 4.7%, trading at HKD 148.70 (approximately USD 18.98) per share in Hong Kong today, nearly 50% below its peak of HKD 285.60 in January. In pre-market trading on the New York Stock Exchange, the stock dropped 5.4%, trading at USD 18.93 as of 8:05 a.m. local time, after gaining 1.9% yesterday.
For the three months ending March 31, the company posted a net profit of CNY 202 million (around USD 29.3 million), compared to a net loss of CNY 10.7 million in the same period last year, according to its late-night financial report. Revenue increased 7%, reaching CNY 7.5 billion (about USD 1.1 billion).
Mobile game income fell 12% to CNY 1.5 billion (roughly USD 220.7 million), mainly due to a high comparison base from the previous year, when the success of its major game, San Guo: Mou Ding Tian Xia, boosted performance. The game’s lifecycle has now stabilized and matured, the report noted.
While Bilibili’s overall earnings have continued the growth trend observed over recent quarters, the sharper decline in gaming revenue has raised questions about the future performance of new titles, said Wu Lixian, a strategist at Everbright Securities International.
San Guo, a strategy game launched in 2024, was instrumental in turning a profit in the last quarter of that year, marking the company’s first quarterly profit. It also contributed to the company’s first annual profit last year, totaling CNY 1.2 billion (about USD 174 million).
Regarding its gaming Division, Chairman and CEO Chen Rui outlined three key strategies during the earnings call: sustaining long-term operations, emphasizing flagship intellectual properties, and revitalizing the brand. Specifically, Bilibili plans to release several new San Guo-themed games this year and actively target the console gaming market, Chen said.
Other areas of the business experienced steady growth in the March quarter. Revenue from value-added services, including premium memberships, rose 4% to CNY 2.9 billion (around USD 422.2 million), and advertising income surged 30%, reaching CNY 2.6 billion.
User engagement also hit record highs, with the average number of daily active users rising 8% to 115 million. The average daily time spent on the platform per user increased by 11 minutes to 119 minutes, the report added.
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