The days when I made a lot of money by buying volume,

It's already in the past.

Warcraft are going to be yellow,

Not to mention asking about this old decay.

Due to the decline in the turnover of the three pillar old games, the operating performance of "Game Mao" Gigabit continued to decline.

After the market on October 24, Gigabit disclosed its report for the third quarter of 2024.

In the first three quarters of this year, the company achieved operating income of 2.818 billion yuan, a year-on-year decrease of nearly 15%; net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") was 658 million yuan, a year-on-year decrease of 23.48%.

The decline in revenue and net profit is not the first time for Gigabit. In 2023, the company's revenue and net profit will also decline.

Judging from the net profit in the first three quarters, Gigabit has fallen three times in a row.

Judging from the data, the sluggish domestic business is the main reason for the decline in its performance.

Gigabit's domestic sales revenue mainly comes from three games, namely the "Ask" mobile game, the "Ask" mobile game and "Yi Nian Yao".

According to the data, in 2023 and the first half of 2024, the three products of "Ask" terminal game, "Askdao Mobile Game", and "Yi Nian Yao (Mainland Version)" will account for more than 68% of Gigabit's revenue.

The one that has been online for a long time is the "Ask" series of games.

The PC game was launched in April 2006 and has been in operation for 18 years.

Launched in April 2016, the game has been in operation for 8 years.

In response to the double decline in revenue and net profit since the beginning of this year, Gigabit explained that the net profit of the terminal game of "Ask" has increased, the net profit of the revenue of "Askdao Mobile Game" has decreased year-on-year, and the net profit of "Yi Nian Yao (Mainland Version)" and "Obi Island: Dream Country" has decreased sharply year-on-year.

However, "Super Evolution Story 2" and "The Origin of Pikatang's Dream", which were launched at the end of last year, contributed incremental operating income and profits in the first three quarters of this year.

Interestingly, in the more than 7 years since its listing, Gigabit has not made any further financing, including equity, bond, and debt financing.

In addition to IPO fundraising, the funds owned by the company basically rely on its own accumulation.

Gigabit with sufficient funds frequently pays out cash dividends in large amounts.

Wind system data shows that since its listing, Gigabit has insisted on paying cash dividends every year, and most of them are high-proportion dividends.

In 2023, the company will distribute cash dividends of 504 million yuan, accounting for 44.82% of the net profit for the current period.

Wind data shows that since its listing, Gigabit has paid a total of 5.764 billion yuan in cash dividends, with an average dividend rate of 67.93% and a dividend financing ratio of 599.70% since its listing.

This time, the core game turnover is not good, and Gigabit's Q3 performance in 2024 is still declining, however, as a major dividend, Gigabit still chooses to take out 144 million yuan to "eat up" dividends.

As for why it insists on a high proportion of dividends, Lu Hongyan, chairman and general manager of Gigabit, said in an interview with the media on October 25 that the company's dividend strategy has always been to ensure the company's cash reserves, and the excess part will be dividends, and this strategy has not changed.

At the same time, among the self-developed products, "Ask Sword Changsheng (code name M72)" and "Legend of the Staff Sword (code name M88)" are expected to be launched in the first half of 2025.

Lu Hongyan bluntly said at the financial report meeting that judging from the test data, the performance of the above two reserve products is relatively mediocre.

Is Gigabit really reducing to mediocrity?

In this regard, "China Times" reporter Yu Yujin and Shule had an exchange, and this monkey thought:

The days of making a lot of money by buying volume are over.

The monsters are going to be yellow, not to mention asking this old decay.

The "Ask" IP, which started from the terminal game to the mobile game, gradually withdrew from the game as they grew older.

As for some other games, such as One Piece, they are also derived from Japanese anime IP, and it is okay for such games to make small profits with guaranteed capital, but it is difficult to become popular.

In other words, Gigabit lacks more innovation and the courage to try and make mistakes, and it is normal to gradually fall behind in the 2020s, when the Mesozoic generation of games that pay more attention to high-quality games, vertical fields and original IPs.

The previous earnings were more maintained by buying volume.

But since the beginning of this year, the cost of buying and acquiring customers has indeed increased a lot, which also makes it inevitable that legendary games that rely on buying volume will inevitably fall into this kind of fueling tactic. The increase in the demand for buying volume in the game industry lies in the intensification of the problem of game homogenization and the lack of innovation of second-tier and below game companies.

For an established game company like Gigabit, the management has a clear understanding of the game market and its own development.

However, if you want to create a game product that is not mediocre, you can only keep trial and error, that is, you need to have games that follow the trend to protect your capital, and you also need innovative products to hit the scene.

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