Pop Culture Announces Improvement in Overall Operations During the Six Months Ended December 31, 2023

Rhea-AI Summary

Pop Culture Group Co., (stock code: CPOP) reported a 113% year-on-year growth in consolidated revenues for the six months ended December 31, 2023, reaching approximately $24 million. The Company also achieved a turnaround in gross profit, shifting from a deficit in 2022 to $1.78 million in profits in 2023. Pop Culture experienced significant growth in online brand marketing and promotion, with a 280% increase in revenue. The Company's CPOP MCN agency boasts 176 KOLs with a fan base exceeding 70 million. Despite a decrease in revenue from event hosting and planning, Pop Culture remains optimistic about its business expansion and growth, particularly through film and television projects and upcoming events in 2024.

Positive

• Pop Culture Group Co., reported a 113% year-on-year growth in consolidated revenues, reaching approximately $24 million for the six months ended December 31, 2023.

• The Company achieved a positive turnaround in gross profit, shifting from a deficit of $2.34 million in 2022 to $1.78 million in profits for the six months ended December 31, 2023.

• Pop Culture experienced a significant growth in its online brand marketing and promotion business, with a 280% increase in revenue.

• The Company's CPOP MCN agency boasts 176 key opinion leaders (KOLs) with a fan base exceeding 70 million, indicating a strong presence in the online marketing space.

Negative

• Despite the overall positive performance, revenue from event hosting and planning decreased, with an 8% and 88% decline respectively for the six months ended December 31, 2023.

• Revenue for event hosting decreased due to the trend of online promotions and economic downturn in China, posing potential challenges for this segment of Pop Culture's business.

• The decrease in revenue for event planning and execution could affect the Company's financial performance, particularly in light of general economic conditions in China.

XIAMEN, China, May 8, 2024 /PRNewswire/ -- In 2023, Pop Culture Group Co., Ltd. ("Pop Culture," or the "Company," stock code: CPOP) unveiled its plan of conducting digital collection sales through its own WeChat account. According to the interim financial report for the six months ended December 31, 2023 released by the company, the second half of 2023 witnessed an increase in its overall operational performance. For the six months ended December 31, 2023, the Company recorded consolidated revenues of approximately $24 million, representing an increase of $12.75 million compared to the corresponding period of the previous fiscal year, reflecting a 113% year-on-year growth. Additionally, the Company's consolidated gross profit for the six months ended December 31, 2023 increased from a deficit of $2.34 million in the six months ended December 31, 2022 to gross profits of $1.78 million in the six months ended December 31, 2023.

Brand promotion services. During the six months ended December 31, 2023, Pop Culture experienced a growth in its online brand marketing and promotion business, which increased by over 280% compared to the same period of the previous fiscal year. In the six months ended December 31, 2023, based on the existing online marketing and promotion matrix, Pop Culture achieved a continuous increase in its core content production with the establishment and strengthening of its CPOP MCN business. As of December 31, 2023, the Company's CPOP MCN agency boasted 176 key opinion leaders (KOLs) with a combined fan base exceeding 70 million. By leveraging its fan base and vertical KOL channels, the Company has developed its multi-channel network ("MCN") business. Due to the growth in online marketing and promotion, the Company's achieved a revenue increase. Revenue for brand promotion increased by 280% from US$5.56 million for the six months ended December 31, 2022 to US$21.14 million for the six months ended December 31, 2023, primarily attributable to their cooperation with KOLs and the trend of increasing in advertisers' online promotion budgets.

Event hosting business. The Company operates in the niche field of street dance. A digitized operational platform for street dance was launched via WeChat, aiming to be a leading brand among SaaS providers in the field of sports and arts education. Revenue for event hosting decreased by 8% from US$2.18 million for the six months ended December 31, 2022 to US$2.01 million, primarily due to the trend of online promotions and the economic downturn in general in China.

Event planning and execution business and other services. Event planning and execution remains a core business for Pop Culture, with a track record of hosting concerts for renowned artists such as Yu Quan and Li Yundi. Revenue for event planning and execution decreased by 88% from US$3.14 million for the six months ended December 31, 2022 to US$0.38 million for the six months ended December 31, 2023, primarily due to the trend of online promotions and the economic downturn in general in China.

With continuous investment and strategic positioning, the Company has achieved certain milestones in the four business segments listed above. The Company expects that its business expansion and growth will also be driven by business operations in certain film and television projects, including "The Legend of the Condor Heroes: The Legend of Qiao Feng" and "The Legend of the Swordsman", the staging of "Superstar Concert" series as scheduled. The company anticipates comprehensive development in both entertainment and street dance sectors throughout the forthcoming fiscal year of 2024. CEO Huang Zhuoqin remarked, "In 2024, street dance joined the Olympic Games for the first time, which stands as the pivotal year for our Company's growth."

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SOURCE Pop Culture Group Co., Ltd

FAQ

What was the revenue growth percentage for Pop Culture Group Co., in the six months ended December 31, 2023?

Pop Culture Group Co., reported a 113% year-on-year growth in consolidated revenues, reaching approximately $24 million.

How many key opinion leaders (KOLs) does Pop Culture's CPOP MCN agency have?

The Company's CPOP MCN agency boasts 176 key opinion leaders (KOLs) with a fan base exceeding 70 million.

What caused the decrease in revenue for event hosting and planning for Pop Culture?

The decrease in revenue for event hosting and planning was primarily due to the trend of online promotions and economic downturn in China.