Fun Game Prospectus Interpretation: a development-supported distribution platform

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Sina Science and technology news Beijing time July 4 morning, the Joy Tease game parent company create Dream World (Idreamsky) to the U.S. Securities and Exchange Commission (SEC) submitted a F-1 prospectus. According to the Analysys report, with 2013 years of active users as a measure, Idreamsky's fun game is China's largest independent mobile game distribution platform.

The prospectus shows that THL A19 2¥q accounted for 26.6% of the shares, becoming the first major shareholder in the dream, the CEO of the dream of Chen Yuyu accounted for 22% of the shares, become the first major shareholder.

With the "Two development based on game product source code" distribution model, dream in the past 3 years, revenue to maintain continued growth and profitability, 2014-year first-quarter dream net profit reached 33.2 million yuan.

Games contribute major revenue

Total revenue, from 2012 of 19.4 million to 2013 of 246.6 million yuan (40.7 million U.S. dollars) in the two-year game business contributed 18.1 million, 244.8 million revenue. 2014 and 2013 in the first quarter of the camp were 174.1 million yuan, 22.1 million, of which the game business contributed 174 million and 21.9 million respectively. From this point of view, the game is the main source of revenue for dream creation.

The game is the main revenue source of dream creation

From the profit point of view, the dream World 2013 net profit of 27.8 million yuan, compared with 2012 net loss of 9.3 million yuan. In the first quarter of 2014, the net profit of the dream world was 33.2 million yuan, which was 700,000 yuan from the same period last year, and achieved substantial growth.

The rapid growth of dream revenue and net profit stems from the rapid rise in monthly active users and ARPU (average per user pay). All of the month-active users of the dream-creating products were 5.6 million in the first quarter of 2012, and the figure grew to 98.3 million in the first quarter of 2014.

In terms of profitability, the dream operating profit margin and net yield rose from 13.7%, 11.3% in 2013 to 25% and 19% in the first quarter of 2014 respectively. In addition, ARPU also grew from 6.7 yuan in 2013 to 11.3 yuan in the first quarter of 2014.

Dream-type research and development

Since 2013, the rapid development of mobile game market has also pushed the industrial chain to become more mature, the market began to form a research and development, distribution, channel three distinct division of industry pattern. The eco-environmental characteristics of mobile gaming industry determine its great dependence on game platform and Channel marketing. And China Mobile game market, a large number of developers and more decentralized, a small number of channel operators to control a large number of user resources, and then further deepen the research and development and channel business between the wrong.

And the Distributor is the link between the role. For overseas game products, they need some localized companies to optimize the product to help them complete port access, continuous optimization, marketing, distribution, monetization, payment support and other services.

Prospectus shows that the game content provider to provide the source code, creating a dream on the basis of two development, on the one hand, can strengthen the control of the content, but also can effectively reduce the development failure rate. In this way of thinking with the help of a dream signed in the mobile Internet game early in a variety of overseas star products, such as "Fruit Ninja" "The Temple Escape" "Subway parkour."

With the source code, dream can be a quick response to the Chinese market when they redesign their game. Take "Temple escape" as an example, dream of the game changes include: Compression package, modify billing points (such as increased resurrection), increase drifting play, increase Liu Yan and other star roles. Similar cases also help create dreams that are more likely to be trusted by overseas developers, who are more likely to disclose source code to them. At present, there are Disney, Gameloft,smilegate,halfbrick,imangi and other overseas developers who have developed such cooperation with dream-creating.

Overseas Boutique Hand tour to create a dream brings benefits, but also bring a high retention rate of users. According to the prospectus, as of the first quarter of 2014, the total installed capacity of dream World's products reached 473 million, and the product retention rate of 2013 year was 45%.

In terms of liquidity, casual game draw paid users rose from 1.1 million in the first quarter of 2013 to 2014 in the first quarter of 5.1 million, up 363% per cent year-on-year, and the average monthly pay user of the medium-heavy game rose from 14000 in the first quarter of 2013 to 2014 in the first quarter of the year, Rose 850%.

The ability to become a dream of various types of games

Private channel and third party channel parallel

Dream in the prospectus said, after two development of Third-party games will be through the fun of their own channels to reach the user, these own channels include cross promotion channels, proprietary channels "Fun Game Center", as well as the Travel Entertainment Network (www.uu.cc).

The prospectus shows that in these own channels, 2013 produced a total of 97.7 million games to download and activate (game download and activation refers to the user through our network successfully registered the download and installation of our games), the 2013-year dream of all games download and activation volume of 36%, Grew by 83.4% from 2012. In the first quarter of 2014, the dream-free channel generated 23.8 million game downloads and activations, representing 32.2% of all game downloads and activations, up 35.4% from the first quarter of 2013.

Creating dreams, based on these users, will also collect user feedback online and analyze user behavior through the multidimensional data analysis engine to drive continuous optimization and monetization of the game.

In addition to its own distribution channels, dream also cooperates with the following platforms: China's mainstream application stores and mobile browsers, such as application Treasure, 360, 91 wireless and UC browser, handset terminal manufacturers and retailers such as Lenovo, Huawei, ZTE and suning, telecommunications operators and mobile advertising platforms.

For the third party channel attitude, dream in the prospectus shows that the Third-party distribution channel network can make it reach the vast majority of China's Android and iOS mobile devices, a dream channel a major advantage is to do depth customization for different channels of the game. For example, for Baidu custom "subway Parkour" Baidu (191.2, 1.24, 0.65%) tournament version, the use of Baidu's most valuable Baidu bar users to enhance the ARPU of paid users.

In addition, the dream also cooperates with most of China's payers, including three major carriers and other mainstream payers, such as Alipay, UnionPay, yeepay payments, and micro-credit payments.

Dream in the prospectus revealed that the future will be with South Korean partners to distribute and operate the Temple Escape series, and operating in Japan branch, while continuing to invest in research and development platform, through strategic alliances and mergers and acquisitions strategy to support the diversification of the game. (Ivan)