Bilibili Inc. reported its first full-year profit in 2025 and is now showing whether profitability can keep growing. In the first quarter, revenue increased 7% to 7.47 billion yuan, driven by a 30% rise in advertising revenue to 2.59 billion yuan. Daily active users grew 8% to 115.2 million, and average daily time on the service reached 119 minutes. Value-added services rose 4% to 2.91 billion yuan, while mobile games revenue fell 12% to 1.52 billion yuan due to tougher comparisons after a prior hit game matured. IP derivatives and other revenue declined 4% to 448.2 million yuan. Advertising strength contrasted with declines at other Chinese internet firms, supported by AI-driven ad matching and higher click-through conversion rates.
"The company only recently crossed into annual profitability, reporting its first full-year profit in 2025. Now, it has to prove that profit wasn't just a cost-control story, but is something that can keep growing. The company's revenue rose 7% to 7.47 billion yuan ($1.08 billion) in the first quarter, led by a 30% rise in advertising revenue to 2.59 billion yuan. Daily active users rose 8% to 115.2 million, with average daily time on the service at 119 minutes."
"The rest of the report was less impressive. Value-added services, Bilibili's largest segment, rose just 4% to 2.91 billion yuan. Mobile games revenue actually fell 12% to 1.52 billion yuan, mainly because last year's comparison was lifted by a hit game that has since entered a more mature part of its cycle. Intellectual property (IP) derivatives and other revenue also fell 4% to 448.2 million yuan. Put simply, advertising was the star of the quarter, while the rest of its business was much less impressive."
"Bilibili's ad growth stands out because other major Chinese internet names are still showing falling ad revenue as advertisers rein in their marketing budgets in China's slowing economy. Baidu (BIDU.US; 9888.HK), still heavily exposed to advertising tied to its search business, reported a 22% decline in online marketing revenue in the first quarter. Online video site iQiyi (IQ.US) also reported its online ad revenue fell 7% during the quarter."
"AI is another factor working in Bilibili's favor, with AI-related advertisers increasing their budgets by more than 170% year-on-year in the first quarter. AI is also helping Bilibili sell ads more efficiently. The company said deeper AI use improved ad matching, driving a 25% year-on-year increase in click-through conversion rates (CTCVR), an impor"
Read at www.benzinga.com
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