Crazy Sports Group (82.HK) announces 2022 full-year results

EQS Newswire / 04.03.2023 / 10:06 UTC+8

Crazy Sports Group Limited

(Incorporated in Bermuda with Limited Liability)
(Article number: 82)

Revenue increased approximately 40% year-on-year to HK$700 million

The total number of platform users increased by approximately 50% to over 70 million

Expanding coverage of digital sports entertainment services with intelligent product upgrades
Support the growing brand influence

(Hong Kong, March 30, 2023) – Crazy Sports Group Limited (“Crazy Sports”, together with its subsidiaries, the “Group”, ticker symbol: 82) announced its annual results for the year ended December 31, 2022 (“2022”).

Crazy Sports is well positioned to enter the trillion dollar digital sports entertainment industry racetrack. Leveraging its unique massive sports user and events database, as well as its key big data, artificial intelligence and blockchain technologies, it strives to empower the traditional sports industry and has “Crazy Red Insights + Lottery Sales, Events + Quizzes, IP + Games” as its central way to implement its digital sports strategy. Pursuant to the mission “Let Sports Create Happiness”, the group is committed to providing users with multi-dimensional, innovative and best-in-class IP-based digital entertainment platforms, providing users with unique and distinctive sports entertainment consumer services.

Highlights of the annual results:

• The group’s revenue increased year-on-year (“YoY”) by 38% to HK$703 million, the total number of platform users increased by 48% compared to December 2021 to 71.1 million, with monthly active users growing by 98%. YOY to 5.08 million. Annual profit was HK$17.7 million, Adjusted EBITDA reached HK$110 million. The growth in users and revenue was driven by the group’s strategic direction to establish a premium sports entertainment platform, which enabled it to capitalize on opportunities in the trillion dollar digital sports entertainment market in China.

Looking ahead to the 2022 World Cup, Crazy Red Insights continued to be the group’s key growth engine. Supported by its investments in research and development (“R&D”) of big data processing systems and AI technologies during the year, the group was able to implement various smart upgrades to its products. In particular, Crazy Red Insights has further improved its AI big data model and strives to provide users with a wide variety of football and basketball game analysis.

• As part of the Group’s World Cup strategy, football games such as “Ace Soccer” (stadium situation) and “football manager” (Fantasy soccer world) released World Cup expansion packs and became the top products during the World Cup, highly recommended by Apple, Android and various channels. In addition, Crazy Sports has established partnerships with well-known game publishing platforms in the co-publishing game business in China. By leveraging the resource advantage of distribution channels, the group saw revenue growth from the co-publishing game business.

• In 2022, the group used sports and games as a starting point to build a Metaverse platform spanning “Content + Technology + Ecosystem” by leveraging its rich digital experience and resources. Its newly launched digital collectibles platform, “Qiankun Digital Collectibles”, has also attracted remarkable noise and traffic, which has given a strong impetus to the growth of the user base of Crazy Sports’ existing sports-entertainment community.

The revenue increase was primarily due to three driving factors:

Expansion of user base and demand – Following its successful user acquisition and retention strategy, the total number of platform users grew by 48% YoY to 71.1 million in 2022. The Group dedicated additional resources to product innovation and marketing, particularly for digital sports entertainment products with higher revenue potential. For Crazy Red Insights, the group launched new features such as multi-dimensional analytical content as well as user experience optimization for expert and package subscriptions that could better meet users’ needs. Notable upgrades were also made to the group’s key gaming products such as Ace Soccer, resulting in improved user satisfaction. Boosted by World Cup fever and successful marketing campaigns for the group’s core products, the group has gained growing visibility and laid a solid foundation for user growth.

Introducing new products, smart upgrades and expansion packs for games and applications – The group actively pursued various smart upgrades in 2022, which could boost user conversion. For example, the group further improved their AI Big Data Red Insights model at Crazy Red Insights. Crazy Red Insights has also teamed up with “Avatar Mulan” (Virtual Person Mu Lan) during the World Cup, interacting with users through a combination of video and live broadcast, which attracted the attention and love of young people and sports fans, and increased sales conversion and user loyalty. In addition, the group introduced four premium games during the year, including the ice snow-themed re-release of “Dream Ski” (fantasy skiing), “Dream Soccer” on the theme of CSL, “Snow Mountain Drift” on the theme of racing (Drifting snow mountain) and mythology on the theme of Genesis: Anthem of Deities (too early). Due to World Cup dynamics, the group’s soccer games released specific World Cup expansion packs. The group also signed deals with major gaming platforms for game co-publishing, thereby expanding its sports and recreational gaming revenues.

Introduction of the self-developed digital collector platform – Qiankun Digital Collectibles launched in April 2022. Leveraging its existing premium IP resources, the platform offers its users themed digital collectibles, successfully catching the attention of sports and culture enthusiasts as well as young and trendy users.

Mr. PENG Xitao, CEO of Crazy Sports Group said: “2022 has been a challenging year as our team strives to navigate adversity amid the impact of the COVID-19 pandemic and the volatile macro environment. Looking to 2023, Crazy Sports will embrace new industry developments by continuing its engagement in sports lottery, digital event empowerment, sports game development, integration of sports and education, and artificial intelligence in sports. The group will also step up its R&D, especially in 5G and Metaverse applications, to enhance product innovation and user experience. In individual business segments, we will continue to improve the user experience of our paid sports information platform by introducing advanced data analysis and artificial intelligence technologies into the product. For sports games, we will explore more genres and gameplay to increase user engagement and retention. We will also continue on our journey of digitally empowering sporting events while exploring opportunities from the increasing integration of sport and education through our experience and technological advantages. For our sports metaverse, we will strengthen our content innovation so that we can create a more authentic and immersive experience of virtual sports events, entertain our users and meet their needs.”

dr Zhang Lijun, Chairman of Crazy Sports Group, said: “As we enter 2023, the digital sports industry is also entering a new era with new developments. Factors such as the growing importance and promotion of the development of the sports industry in the country, as well as the deep integration of the sports industry with other related industries and digital transformation will create new forms of consumption in sports, all have laid a solid foundation for the sustainable development of Crazy Sports.

As we march into 2023, events like the FIFA Women’s World Cup, the Asian Games and the FIBA ​​Basketball World Cup expected to take place as planned. Backed by our growing database and our team with extensive operational experience, Crazy Sports will grow and evolve in the post-pandemic era, creating more value for our shareholders. Let’s work hard and move forward and reach greater heights together in 2023!”

– End –

This press release is being issued by DLK Advisory Limited on behalf of Crazy Sports Group Limited.

If you have any questions, please contact:

DLK advice Jintong strategy

Telephone: 2857 7101

E-mail: [email protected]

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03/04/2023 Dissemination of a Financial Press Release, transmitted by EQS News.
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