CEO of China’s Bilibili to manage gaming unit in bid to boost revenue
THE chief executive of China’s Bilibili has taken over direct supervision of the company’s gaming department, according to an internal email seen by Reuters, as the Alibaba-backed company looks to boost revenue growth.
The human resource department of Bilibili, best known for its YouTube-like video-sharing platform, issued an email last Friday informing employees that those in its gaming department will report to Chen Rui, the company’s CEO, and no longer Zhang Feng, a senior vice-president at the company.
Local media first reported the news over the weekend, sending Bilibili’s shares up about 10 per cent in Hong Kong on Monday (Nov 7) as investors interpreted it as an effort by Bilibili to refocus on its gaming business, which had been an important revenue generator for the company but has struggled in recent years.
When Bilibili went public on the Nasdaq in 2018, gaming accounted for about 80 per cent of its total revenue. Its most famous title at the time was strategy game Fate/Grand Order. But Bilibili has been struggling to find new hits over the years while other Chinese companies including NetEase and miHoYo continue to gain ground.
Bilibili’s gaming revenue declined 15 per cent in the quarter ended June this year, accounting for about 21 per cent of its total revenue.
The company has long struggled to turn a profit despite having more than 300 million monthly users on its video platform.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Its share price has fallen more than 90 per cent from its June 2021 peak to US$11.71 as of Monday. REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Thai Beverage Q2 net profit falls 4.9% to 7 billion baht on lower profits from associates
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Cordlife to cancel private placement; MOH stresses importance of local directors
AI will have to prove itself to gain greater traction in healthcare sector, say industry players
Shein steps up London IPO preparations amid US hurdles to listing, sources say
US bill to restrict WuXi AppTec, Chinese biotechs revised to give more time to cut ties