SHANGHAI, May 17, 2016 /PRNewswire/ -- On April 26th, 37Games reported its financial results for the quarter ended March 31, 2016. The Company posted quarterly revenue of RMB 1.19 billion, a 17.74% growth compared with the year-ago quarter. Net income attributable to shareholders increased by 132.87% year-on-year to RMB 211 million. 37Games estimates the half-year net income attributable to shareholders to be RMB 420 million ~ RMB 527 million, which is a 94.20% ~ 143.68% growth compared with the year-ago period.
The Company also announced that it was planning to sign an agreement for a strategic partnership with Mango Media and set up a UGC hatch fund. Mango Media is a Chinese entertainment company specializing in on-line media, brokerage, film and TV program production and broadcasting. The fund will be used to support innovative user-generated content and to invest in young studios and promising projects. The partnership of 37Games with Mango Media guarantees the expertise of the fund in the incubation of quality user-generated content.
According to the agreement, the total investment of the hatch fund will be around RMB 130 million, in which RMB 20 million ~ RMB 40 million will come from 37Games. Meanwhile a joint-venture company has been established to manage the fund. 37Games will have a stake in the management company and hold seats on the decision-making committee.
37Games is going to provide its own IP resources (including games, animations, films, live video programs and so on), developer teams and platforms to the fund. In return, 37Games will enjoy priority in adapting video IPs hatched by the fund into games.
37Games is confident about the strategic partnership with Mango Media. The company is expecting not only profits from the investment but also good programs and films that have potential in the gaming market. It is believed that 37Games will benefit from Mango Media's brand reputation and resources and further strengthen its brand image in the entertainment industry.
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