Kuke Music Holding Limited (KUKE) Reports Q1 Loss of $0.08 on Revenues of $1.7M

Kuke Music Holding Limited (NYSE: KUKE) reported Q1 EPS of ($0.08). Revenue for the quarter came in at $1.7 million.

First Quarter 2021 Highlights

• Total revenue increased by 85.0% to RMB11.4 million (US$1.7 million) from RMB6.2 million in the same period of 2020.
• Smart music education revenue increased by 786.9% to RMB6.8 million (US$1.0 million) from RMB0.8 million in the same period of 2020. Licensing and subscription revenue decreased by 14.5% to RMB4.6 million (US$0.7 million) from RMB5.4 million in the same period of 2020.
• Loss was RMB37.0 million (US$5.5 million), compared to RMB37.4 million in the same period of 2020. Non-IFRS loss[1] was RMB15.6 million (US$2.4 million), compared to RMB15.9 in the same period of 2020.
• As of March 31, 2021, the Company had established collaborations with over 2,500 kindergartens, and over 38,000 paying students were enrolled in the Company's Kukey courses. The number of Kuke smart pianos that the Company had placed in collaborating kindergartens was more than 11,000.
• Full year 2021 revenue is expected to be no less than RMB400 million (US$61.05 million).

Mr. He Yu, Chief Executive Officer of Kuke, commented, "We achieved strong revenue growth for the first quarter, as revenue increased by 85.0% year over year to RMB11.4 million. Growth was mainly driven by our smart music education business which grew 7.9 times from the same period of last year. This was largely due to our ability to adapt quickly to the reopening of schools and new government policy emphasizing more arts education for primary and secondary schools. We expect these trends to continue driving growth in demand for our music education services going forward."

Mr. Tony Chan, Chief Financial Officer of Kuke, commented, "Our gross profit for the first quarter increased by 125.8% year over year to 3.2 million, while gross margin was improved to 28.2% from 23.1% in the same period of last year. This was due to our enhanced bargaining power to secure better terms with upstream content providers. Given the favorable market conditions for our music education services, we will continue to expand the segment while leveraging our leading content library, differentiated technology and effective partnerships to continue improving our efficiency and support sustainable growth over the long term."

For earnings history and earnings-related data on Kuke Music Holding Limited (KUKE) click here.

You May Also Be Interested In

• Alphabet (GOOGL) soars 16% on Q1 results beat, first-ever dividend
• COPT Defense Properties (CDP) Reports In-Line Q1 EPS; offers guidance
• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition