Nasdaq Company Beats the Street with Adjusted Revenue Growth Higher than previously reported. Glory Star New Media (Stock Symbol: GSMG)

Glory Star New Media Group Holdings Limited (OTCMKTS:GSMG)

BEIJING, CHAOYANG, CHINA, June 3, 2021 /EINPresswire.com/ -- Nasdaq Company Beats the Street with Adjusted Revenue Growth Higher than previously reported. Glory Star New Media (Stock Symbol: GSMG)

GSMG reports .91 Earnings per share up from .64 last year

GSMG is Partnered with ByteDance, E-Surfing Media, JD.com, China Mobile & China Telecom, GSMG is becoming a Media Giant.

On to the Amazing Adjusted Numbers:

Glory Star New Media (Stock Symbol: GSMG) has restated its previously issued consolidated reflect the change in accounting treatment of the private placement warrants issued by the Company (the "Restatement").

The impact of the Restatement was an increase in net income of $19.7 million for the year ended December 31, 2020, an increase in total liabilities of $833,000 and a corresponding decrease in total equity of $833,000 as of December 31, 2020. As a result, the Company's net income increased to $49.0 million from $26.4 million in 2019, representing an increase of 85.4% year over year. The Company's basic earnings per share increased to $0.91 from $0.64 in 2019, representing an increase of 42.2% year over year. The Restatement had no impact on the Company's cash and cash equivalents, or cash flows from operating, investing and financing activities.

Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) a leading mobile and online digital media and entertainment company in China, today announced its financial results for the full year ended December 31, 2020.

- Full Year 2020 Operating Highlights

Downloads of the CHEERS App1 was approximately 169 million as of December 31, 2020, compared to 85 million as of December 31, 2019.

Average daily active users ("DAUs")2 of the CHEERS App increased to approximately 5.4 million from 1.9 million for the full year of 2019.

The Company's e-Mall carried 24,975 Stock Keeping Units ("SKUs") in total as of December 31, 2020. Gross merchandise value ("GMV") of the Company's CHEERS App was approximately US$132 million, compared to US$19.4 million in the full year of 2019.

- Full Year 2020 Financial Highlights

- Revenues for the full year of 2020 increased by 88.2% to US$123.8 million from US$65.8 million for the full year of 2019. Revenues from the Company's CHEERS App Internet Business increased by 195.3% to US$83.6 million for the full year of 2020, from US$28.3 million in the full year of 2019, and represents 67.5% of total revenues. Revenues from the Company's Traditional Media Business increased by 7.2% to US$40.2 million for the full year of 2020 from US$37.5 million for the full year of 2019, and accounts for the remaining 32.5% of total revenues.

- Income from operations for the full year of 2020 increased by 14.3% to US$30.7 million, from US$26.8 million for the full year of 2019.
- Operating margin was 24.8% for the full year of 2020, compared to 40.8% for the full year of 2019.

- Net income attributable to Glory Star's shareholders increased by 11.2% to US$29.3 million for the full year of 2020, from US$26.3 million for the full year of 2019.

- Net margin was 23.6% for the full year of 2020, compared to 40.1 % in the full year of 2019.


1. Glory Star defines this metric as the total number of downloads of the CHEERS App as of the end of the period.

2. Glory Star defines daily active users, or DAUs, as a user who has logged in or accessed Glory Star's online video content and/or its e-commerce platform using the CHEERS App, whether on a mobile phone or tablet. Glory Star calculates DAUs using internal company data based on the activity of the user account and as adjusted to remove "duplicate" accounts.

Mr. Bing Zhang, Founder and Chief Executive Officer of Glory Star, commented, "We concluded the full year of 2020 with strong operating and financial performances as a result of our business resiliency and visionary growth strategies. During the period, we remained focused on optimizing our internally developed products, expanding our product use cases, growing our partnership base, and enriching our catalogue of high-quality content. As a result, we not only augmented the breadth and depth of our product and content offerings, but also enhanced our paying user count and user retention rate. Looking ahead, we will continue to enrich peoples' lives, forge win-win partnerships, and develop our business segments. Moreover, as the economy continues to gradually recover and technology evolves, we will also capitalize on those new opportunities which emerge to fuel our growth engines."

Mr. Perry Lu, Chief Financial Officer of Glory Star, added, "Despite the macro uncertainties and ongoing presence of COVID-19, we delivered solid financial results in the full year of 2020. During the year, we grew our revenues by 88.2% year over year while also increasing our net income attributable to shareholders by 11.2% year over year. Such positive trends in revenues and profitability continue to validate our business initiatives, growth strategies, and long-term development trajectory. Going forward, our abundant cash reserves, sufficient liquidity, and healthy financial performance should continue to serve as significant competitive advantages, allowing us to increase our market share and deliver lasting shareholder value over the long-term."

Full Year 2020 Financial Results

Revenues increased by 88.2% to US$123.8 million for the full year of 2020, from US$65.8 million for the full year of 2019, mainly due to the successful development of the Company's self-owned mobile CHEERS application allowing users to access the Company's online video content, live streaming shows, online games and shopping, and an increase in the average price of advertisements types. Advertising revenues increased by 116.3% to US$104.7 million for the full year of 2020, as compared to $48.4 million for the full year of 2019. CHEERS e-Mall marketplace service revenues increased by 126.4% to US$1.5 million for the full year of 2020 from $0.7 million for the full year of 2019. The Company continues to attract active users to its platform by developing engaging short-form videos, live streaming events, games, and network dramas. Following the restriction of outdoor activities caused by COVID-19, increases in online entertainment and shopping continued to stimulate growth in advertising revenues as well as CHEERS e-Mall marketplace service revenues.

Total operating expenses for the full year of 2020 increased by 139.1% to US$93.1 million from US$38.9 million for the full year of 2019.

- Cost of revenues increased by 20.6% to US$38.5 million for the full year of 2020, from US$31.9 million for the full year of 2019. The increase was mainly attributable to the increase of production cost associated with content to improve diversity, quantity and content richness and bandwidth cost.

- Selling and marketing expenses for the full year of 2020 were US$43.8 million compared to US$3.2 million for the full year of 2019. As a percentage of revenues, selling and marketing expenses for the full year ended December 31, 2020 were 35.4% as compared to 4.8% for the same period of 2019. The increase was due to the increase in advertising fees, as well as an increase in marketing and user acquisition activities to attract new customers for the Company's CHEERS application and CHEERS e-Mall.

- General and administrative expenses for the full year of 2020 were US$10.1 million compared to US$3.1 million for the full year of 2019. As a percentage of revenues, general and administrative expenses for the year ended December 31, 2020 were 8.2% compared to 4.8% in the full year of 2019. This increase was mainly attributable to increases in share-based compensation for Company's employees in management functions and other professional service fees related to the Company's business combination.

- Research and development expenses for the full years of 2020 and 2019 were US$0.7 million and US$0.7 million, respectively.

Income from operations for the full year of 2020 increased by 14.3% to US$30.7 million from US$26.8 million in the full year of 2019. Operating margin in the full year of 2020 was 24.8% compared to 40.8% for the full year of 2019.

Net income attributable to Glory Star's shareholders for the full year of 2020 increased by 11.2% to US$29.3 million from US$26.3 million in the full year of 2019. Net margin in the full year of 2020 was 23.6% compared to 40.1 % for the full year of 2019.

Basic and diluted net income per share for the full year of 2020 were US$0.54 and US$0.50, respectively. In comparison, the Company's basic and diluted net income per share for the full year of 2019 were US$0.64 and US$0.57, respectively.

As of December 31, 2020, the Company had cash and cash equivalents of US$17.7 million, compared to US$6.9 million as of December 31, 2019.

For more information on GSMG visit: http://www.yaoshixinghui.com/

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Disclaimer/Safe Harbor:

These news releases and postings may contain forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies’ contracts, the companies’ liquidity position, the companies’ ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.

Bing Zhang Chairman and CEO
Glory Star New Media Group Holdings Limited
+86 10 8770 0500
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