Mario Bautista
Bilibili (BILI, Financial) reported first-quarter 2025 results meeting expectations, with total revenue rising 23.6% year-on-year to 7 billion RMB. Adjusted EBITDA stood at 342 million RMB. Strong mobile game revenue performance offset lower-than-expected advertising income.
Mobile game revenue skyrocketed by 76% year-on-year, driven by popular games such as “Three Kingdoms” and the newly released “Jujutsu Kaisen: Phantom Parade.” Advertising revenue grew by 20%, fueled by robust demand in gaming and 3C products sectors, albeit from a higher base last year.
Bilibili is projected to maintain a steady 20% revenue growth in the second quarter of 2025, with profits around 550 million RMB. However, revenue growth may slow to 10% in the latter half of 2025, depending on new game approvals. The target price has been adjusted from $25 to $24 due to a 4% and 7% reduction in 2026 and 2027 revenue forecasts as the company awaits domestic approvals for new games. The “outperform” rating is maintained.
