37 Interactive Entertainment Network Technology Group Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of 37 Interactive Entertainment Network Technology Group Co., Ltd.

Founded in 2008 and based in Shanghai, 37 Interactive Entertainment Network Technology Group Co., Ltd. is a prominent player in the online gaming industry. The company’s core focus has been on developing and publishing online games, particularly in the mobile gaming sector. With a strategic emphasis on innovation, 37 Interactive has cultivated a robust portfolio of products that include MMORPGs and casual games.

In 2014, 37 Interactive went public on the Shenzhen Stock Exchange under the ticker 002555. The initial public offering (IPO) raised approximately 1.4 billion RMB (approximately 200 million USD at the time), marking a significant milestone for the company.

By 2018, 37 Interactive was recognized as one of the top online game developers in China. According to its annual report, the company achieved a total revenue of 3.5 billion RMB (around 510 million USD), representing a year-on-year growth of 15%.

In 2020, the company expanded its reach into international markets, paving the way for global partnerships and collaborations. This strategic move was underscored by the launch of several successful titles in Southeast Asia and North America.

As of 2022, 37 Interactive reported a total operating revenue of 4.2 billion RMB (approximately 650 million USD), with net profits reaching 1.2 billion RMB (around 185 million USD). The growth trajectory was supported by a diversified game lineup and enhanced user engagement through community building and in-game events.

In 2023, 37 Interactive continued its momentum by further investing in advanced technologies, including artificial intelligence and augmented reality, to enhance gaming experiences. This commitment to innovation is expected to drive future growth and solidify its position within the competitive online gaming landscape.

The company has also been active in mergers and acquisitions, acquiring smaller game studios to broaden its development capabilities. This strategy aligns with its goal to diversify offerings and capture emerging trends in the gaming sector.

As of the latest fiscal quarter, 37 Interactive reported that its monthly active users had increased to over 100 million, indicating a healthy and growing user base. The company's ability to adapt to changing consumer preferences has positioned it favorably amid evolving market dynamics.

A Who Owns 37 Interactive Entertainment Network Technology Group Co., Ltd.

37 Interactive Entertainment Network Technology Group Co., Ltd., a prominent player in the Chinese online gaming and entertainment sector, primarily focuses on the development and distribution of online games. As of the latest available data, the ownership structure of 37 Interactive is mostly comprised of institutional investors along with a significant portion held by the company's co-founders and executives.

The company was listed on the Shenzhen Stock Exchange under the stock code 002555. As of the end of 2022, the market capitalization of 37 Interactive was approximately ¥37 billion (around $5.5 billion), reflecting its significant presence within the industry.

In terms of financial performance, 37 Interactive reported a total revenue of ¥8.1 billion for the fiscal year 2022, with a net income of ¥2.3 billion, showcasing a year-on-year growth of 15%. The company's gross margin stood at 34%, indicating a solid profit structure.

Ownership distribution indicates a strong control by the founding members, with the co-founders combining for a total ownership of 46%. Institutional investors have also increased their stake over recent years, reflecting confidence in the company's growth trajectory and market strategy.

As of October 2023, the stock price of 37 Interactive was approximately ¥76, showing a 20% increase compared to the previous year. The trading volume has averaged around 3 million shares daily, indicating robust investor interest.

37 Interactive Entertainment Network Technology Group Co., Ltd. Mission Statement

The mission of 37 Interactive Entertainment Network Technology Group Co., Ltd. is to create diverse and engaging entertainment experiences through innovative technology and immersive gameplay. The company aims to achieve this by combining creative content development with advanced technological capabilities.

As of the end of Q3 2023, 37 Interactive reported an annual revenue of RMB 3.12 billion, reflecting a year-on-year growth of 15%. The company focuses on building strong relationships with users, fostering a dedicated gaming community, and consistently innovating to stay ahead in a highly competitive market.

Strategic Objectives

• Enhance user engagement and satisfaction.
• Expand into international markets.
• Invest in new technologies for game development.
• Increase the variety of gaming offerings.

Core Values

• Innovation: Continuously improving and adapting technologies.
• Integrity: Upholding transparent and ethical practices in business.
• Community: Building strong relationships with gamers and stakeholders.
• Quality: Commitment to delivering high-quality gaming experiences.

Recent Financial Performance

In the first half of 2023, 37 Interactive's net profit was reported to be RMB 600 million, marking an increase of 20% compared to the previous year. The company's EBITDA stood at RMB 800 million, directly reflecting a focus on operational efficiency and cost management.

In addition, the company's user base has grown to over 50 million active users as of Q3 2023, demonstrating its strong market presence and brand loyalty among gamers. The strategic focus on mobile gaming has proven particularly effective, with mobile titles contributing to approximately 65% of total revenue.

Market Position

As of October 2023, 37 Interactive holds a market capitalization of approximately RMB 20 billion. The company is recognized as a key player in the Chinese gaming industry and continues to explore opportunities in overseas markets, aiming for 30% of revenue to come from international gaming titles by 2025.

With a focus on user-centered design and innovative storytelling, 37 Interactive aims to redefine the gaming landscape and establish a lasting legacy in the entertainment sector.

How 37 Interactive Entertainment Network Technology Group Co., Ltd. Works

37 Interactive Entertainment Network Technology Group Co., Ltd., commonly known as 37 Interactive, is a leading online gaming and entertainment company based in China. The company operates primarily within the video game industry, focusing on the development and publishing of mobile and PC games. Its revenue model predominantly hinges on in-game purchases and advertisements. As of 2022, the company reported a revenue of approximately RMB 3.2 billion (around $500 million), showcasing a steady growth trajectory.

37 Interactive's primary operations include game development, distribution, and the provision of related services. The company has a diverse portfolio of games, including popular titles such as “The King's Avatar” and “Dragon Valley.” These games are typically free-to-play, with monetization strategies that incorporate microtransactions, allowing users to purchase in-game items and enhancements.

In terms of user engagement, 37 Interactive has attracted a substantial player base. As of late 2022, the company reported an average of 15 million monthly active users, reflecting its strong market presence. The retention rates for their key titles hover around 30%, which is considered competitive in the gaming industry. The company's strategies also include regular updates and expansions to sustain user interest and attract new players.

Aside from game development, 37 Interactive has also invested in technology innovation, particularly in Artificial Intelligence (AI) and cloud computing. These investments are aimed at enhancing user experience through personalized gaming environments. The company's research and development (R&D) expenditures accounted for approximately 15% of its total revenue in 2022, highlighting its commitment to technological advancement.

Geographically, the company has expanded its operations beyond China, with a presence in Southeast Asia and Europe. As of 2022, overseas revenue contributed to roughly 25% of total revenue, indicating a growing international footprint. This expansion is supported by strategic partnerships and collaborations with local gaming firms to enhance market penetration.

In terms of stock market performance, 37 Interactive is listed on the Shenzhen Stock Exchange under the ticker symbol 002555. The company's market capitalization as of October 2023 stands at approximately RMB 20 billion (around $3 billion). The shares have shown resilience, with a 12-month return on equity (ROE) of around 15%, reflecting strong profitability relative to shareholders' equity.

Furthermore, 37 Interactive emphasizes corporate social responsibility (CSR) initiatives, focusing on community engagement and responsible gaming practices. The company has implemented various programs to promote healthy gaming habits among its user base, aligning with industry standards and regulations.

How 37 Interactive Entertainment Network Technology Group Co., Ltd. Makes Money

37 Interactive Entertainment Network Technology Group Co., Ltd., primarily engages in the development and operation of online games. The company has diversified its revenue streams through multiple channels, which include game publishing, in-game purchases, and advertisements.

Revenue Breakdown

In 2022, the company reported total revenue of approximately ¥3.5 billion (around $540 million), reflecting a year-over-year growth of 14%. The growth in in-game purchases showcases a shift in consumer spending patterns, driven by the popularity of mobile gaming.

Game Publishing

Game publishing involves distributing titles developed either internally or by third parties. For instance, their flagship title, "Fate/Grand Order," has generated over ¥1 billion (around $154 million) in annual revenue, accounting for a significant portion of the company's overall profits.

In-Game Purchases

The in-game purchases segment has been rising in popularity due to the success of free-to-play games. In 2022, this sector alone contributed approximately ¥1.05 billion (around $163 million), with an expected increase to ¥1.18 billion (around $182 million) in 2023. This growth is supported by the introduction of new characters and limited-time events that encourage player spending.

Advertising Revenue

Advertising, while being the smallest segment, still plays a role in 37 Interactive’s revenue strategy. In 2022, it generated roughly ¥350 million (around $54 million), but is projected to decline slightly to ¥315 million (around $49 million) in 2023, largely due to increased competition and lower ad engagement rates in the gaming sector.

Additional Revenue Streams

The company has also ventured into merchandising, with sales around ¥175 million (around $27 million) in 2022, expected to remain stable going forward. This includes branded merchandise related to their popular games, targeting dedicated fanbases.

With a focus on innovation and player engagement, 37 Interactive seeks to maintain its competitive edge in the rapidly evolving gaming landscape. By diversifying revenue sources and continually adapting to market trends, the company aims to sustain its financial growth and market presence.