Company Reports

China's National Press and Publication Administration issued 621 game licenses in the third quarter of 2026, up 34% year on year and roughly twice the quarterly average over the past six years.

Bilibili's second-quarter results landed in line with guidance. Revenue rose 8% and operating profit jumped nearly 50% year over year. Third-quarter guidance points to steady growth and stable margins.

Bilibili hosted its 2026 investor day in Shanghai on July 10, detailing its advertising growth drivers, a six-title game pipeline with two launches slated for the fourth quarter, and a roughly CNY 1 billion artificial intelligence budget for 2026.

China's National Press and Publication Administration issued 483 game licenses in the second quarter, up 13% year on year. Approvals rose in each month of the quarter. Domestic titles drove the gain, up 17%, while imported licenses, already a tiny share of the total, kept falling.

Bilibili posted a clean quarter, with revenue up 7% year over year and operating margin expanding steadily. Guidance for the second quarter points to similar top-line growth and continued margin expansion, albeit at a slower pace as artificial intelligence investment ramps.

China's National Press and Publication Administration issued 467 game licenses in the first quarter of 2026, up 22% year over year, setting the stage for another strong year of gaming approvals.

Bilibili generates revenue through four main sources—advertising, games, livestreaming, and subscriptions. Among these, we believe the advertising business, which is anchored by its YouTube-like video-sharing platform, is the company’s most valuable asset and the primary driver of its long-term success.

Bilibili’s fourth-quarter revenue rose 8% year over year, while adjusted operating profit increased 81%, reflecting improved operating leverage. Management’s guidance for the next quarter points to continued strength in advertising revenue, partially offset by ongoing softness in gaming.

Bilibili generates revenue through four main sources: (1) advertising, (2) mobile games, (3) live streaming, and (4) subscriptions. Among these, we believe that the advertising business—centered on its YouTube-like video-sharing platform—is the company’s most valuable asset for long-term success.

China’s National Press and Publication Administration issued 497 game licenses in the fourth quarter of 2025, representing a 30% year-over-year increase, closing out a strong year for China’s gaming approvals.

Bilibili reported 5% year-over-year revenue growth in the third quarter, as a decline in game revenue was more than offset by a 23% increase in advertising. Management expressed confidence in continuing to gain ad market share.

China’s National Press and Publication Administration issued 463 game licenses in the third quarter of 2025, representing a 34% year-over-year increase. Notably, 173 game licenses were issued in August alone, the highest monthly total in four years.

Bilibili reported 20% year-over-year revenue growth in the second quarter of 2025, with adjusted operating margin rising to 7.8% from 4.9% in the prior quarter.

Bilibili hosted its 2025 investor day without providing any updated financial guidance.

Bilibili reported a 24% year-over-year revenue growth for the first quarter of 2025 and achieved a small operating profit, in contrast to an operating loss during the same period last year.

Bilibili generates revenue through four main sources: 1) advertising, 2) mobile games, 3) live streaming, and 4) subscriptions. Among these, we believe that the advertising business—centered on its YouTube-like video-sharing platform—is the company’s most valuable asset for long-term success.

Bilibili delivered strong profitability in the fourth quarter of 2024. Despite a challenging economic environment in China, the company reported a 24% year-over-year growth in advertising revenue. Guidance for 2025 also came in above consensus estimates.

Bilibili generates revenue through five major sources: 1) advertising; 2) mobile games; 3) live streaming; 4) subscriptions; and 5) e-commerce. We believe that the advertising business (as part of its YouTube-like video sharing website) is the most important asset for the company’s long-term success.

Bilibili's third-quarter earnings and fourth-quarter guidance both surpassed our expectations, driven by robust game revenue, specifically from the successful launch of San Guo: Mou Ding Tian Xia in June. While we have raised our near-term estimates, it's too early to know if the new title's success will continue beyond a few quarters. Therefore, we maintain our long-term assumptions and fair value estimate of USD 34 (HKD 266). We continue to see Bilibili’s shares as undervalued, based on our positive outlook for its advertising segment.

Bilibili’s second-quarter earnings exceeded our expectations, and management provided upbeat guidance for the third quarter following the successful launch of its new mobile game. We lifted our near-term estimates but leave the bulk of our long-term assumptions intact, as the success of one game doesn’t change our long-term outlook for Bilibili’s game business. As a result, we maintain our USD 34 (HKD 266) per share fair value estimate and view shares as undervalued.