Pigeon interaction and YY in the end who is more profitable?

Each reporter Jiali Juan intern reporter Yuan Dong

SkyDove Interactive is not the first independent listed company in the social video industry in China. YY (Lively Times) landed on NASDAQ in November 2012.

YY first day of listing, opened at 10.5 US dollars per share, then all the way up to March 2014 reached the highest point of history of 90.93 US dollars per share, so far its share price remained at 75 US dollars per share, price-earnings ratio reached 48 times.

The same is in the social video industry days pigeon interaction, because of its business similar to YY, was dubbed "the second YY." So, compared with the YY, Heaven pigeons interactive gold content how high?

Who is the industry leader?

According to iResearch, in terms of total user spending, Pigeon Interactive is the largest social video platform in the country with a market share of 33.9% in 2013.

Heavenly Dove Interactive said in the prospectus: According to the user expenditure division, Heavenly Dove interaction accounted for 33.9%, YY accounted for 23.1%, six rooms accounted for 11.6%, Jinhua Changfeng (the main operation of Guage) account for 11.6% Other platforms accounted for 19.8%.

However, "Daily Economic News" reporter found that in 2013, Pigeon Interactive revenue of 548 million yuan, net profit of 206 million yuan, while YY over the same period operating income of 1.8 billion yuan, of which YY entertainment revenue of about 1 billion yuan. Known as the market share is greater than YY days pigeon interaction, why the revenue is less than YY?

The reason is that Pigeon Interactive sells virtual currencies through third-party distributors and sales agents, but the company accounts for only about 30% to 40% of its sales revenue. The revenue is far less than the final sales of virtual currency. YY's main profit model is the sale of virtual gifts, but the middle of no distributors, sales agents link, sales revenue is operating income. In other words, Heavenly Dove interaction highest in the industry's first user spending accounted for, and can not be fully converted into its revenue.

In fact, the so-called "first" is not only interactive pigeons. Six rooms official website information display, the company is "China's largest" video social networking sites and online live entertainment platform. This statement is not wrong, iResearch reported that in terms of user size, the current occupies a leading six rooms in March 2013 six-room website monthly coverage of the proportion of total social video users reached 39.3% of the total scale, YY Of the user penetration rate of 36.3%, while the days of pigeon Interactive's 9158 video community (hereinafter referred to as 9158) and Sina show user penetration rates were only 2.1% and 2%.

Business concentration is too high

The vast majority of pigeon interactive revenue comes from the real-time social video platform, which accounts for 96.4% of the revenue. The rest of the revenue includes online games and advertisements, accounting for a very small proportion.

The prospectus shows that SkyDove Interactive is also actively developing other businesses such as developing mobile games and partnering with physical karaokes, but at the current stage, such revenue share is still low.

Analysys think tank analyst Roland believes that the simple show field mode in the long term slightly thin, pigeon interactive future business should rely on the coordination of different operating modes of support. "In addition to the YY show pattern, the advertising and gaming businesses contributed a significant portion of its revenues, which are more dependent on the show floor model and more dependent on the new business model for future performance growth Open up. "

Statistics show that online music accounted for 46.8% of all YY's businesses by 2013, accounting for 33% of online games, while the rest were live games and online education. In 2013, the revenue of YY online game was 602 million yuan, up 81.2% over the same period of the previous year with a market share of 0.72%.

It can be seen, YY in the diversified development, obviously superior to the interaction between pigeons, the latter a slightly single business model.

Growth is far lost in YY

Then compare the two users. As of December 31, 2013, the total number of registered users of Tiange Interactive Live Video Platform was 205 million, an increase of 42.5% over the same period of last year; the average monthly active users was 10.8 million, an increase of 35% over the same period of last year; the average monthly paid users was 270,000 , An increase of 29.2% over the same period of last year. In 2013, the average monthly paid user revenue was 163 yuan, down 6.32% from the same period of last year.

While YY registered a total of 700 million registered users over the same period, an increase of 53%; value-added services (including online games, online music, etc.) an average of 92.3 million monthly active users, an increase of 32.4%; value-added services to 3.2 million paying users , An increase of 33.3% over the same period of the previous year; the average monthly paid user revenue was 44 yuan, an increase of 77.1% over the same period of last year.

From this point of view, compared with YY, the number of active interactive pigeons is lower; the number of pigeon interactive subscriptions and the growth rate are also lower than YY; and the average pigeon interactive fee per user is higher than that of YY, but In 2013, the decline actually occurred, while YY still recorded a sharp increase.

The number of users and pay rates, will eventually be reflected in the cash flow, then, Dove Interaction and YY in the end who is more profitable?

According to the 2013 financial statements, the interactive operating income of Pigeon is 548 million yuan and the net profit is 206 million yuan. The business income of YY is 1.8 billion yuan and the net profit is about 480 million yuan. Simply put, YY's operating income and net profit far higher than the interaction of the hen dove. However, YY's data includes part of the game business, a simple comparison may not be scientific.

Daily Economic News reporter reading the report found that, compared with the YY, pigeons interactive higher cost of sales, which is related to the interactive pigeon sales model. In addition, Skycloud's interaction has a high degree of reliance on marketing. In 2013, Skyclutch's sales and marketing expenses accounted for 30% of its total revenue, while YY's expenditure was much smaller at 12%.

Another noteworthy data is: Days pigeons interactive revenue growth from 2012 to 2013 were 18.6%, 20.3%, adjusted net profit growth of 13.2% and 30.2% respectively, relatively stable; and YY income growth over the same period respectively At 157% and 122% respectively. Net profit in 2012 turned around, and net profit in 2013 increased by 435%, which is in a state of rapid growth. In terms of growth, YY win again.

Whose "backstage" is harder?

Pigeon interaction and YY after the start-up, have been well-known companies to invest. According to the prospectus, Tidy Interactive conducted three rounds of financing in 2010 and before. In December 2008, CSquaredInvestmentInc and CSquaredVentureCapitalInc conducted A round of investment in the company and B round of investment in the same month. In July 2010, Sina Hong Kong C round of investment. Currently, Sina Hong Kong owns a 32.87% stake in SkyDove Interactive, IDG Capital owns 21.91% of the equity stake in SkyDove before the IPO, with investment costs of 30 million U.S. dollars and 20 million U.S. dollars respectively.

Reporters noted that the interactive pigeon market, the basic investors also have great success, including Qihoo 360, Xijing investment, respectively, to subscribe for 5 million US dollars, 10 million US dollars of the shares for sale.

Liu Yang, chief investment officer of Xijing, known as Hong Kong's goddess of the goddess, has said publicly that there is great potential for the development of the interactive pigeons. And as the industry leader, the company has surpassed YY in growth potential.

The YY also has a tough "backer", the background boss Lei Jun except as chairman of Jinshan software, millet CEO, is also a famous investor. Since July 2010, Lei Jun served as the chairman of YY. When YY was listed, Lei Jun held 23.8% shares of YY, holding the same proportion as YY CEO Li Xueling. YY prospectus shows, as well as participating in the investment of Morningside Ventures, Synway Investment and Jiyuan Capital, and the famous Tiger Fund.