MSGM Latest Report

Performance of the Quarterly Report

As of December 31, 2024, Motorsport Games (stock code: MSGM) recorded a total operating revenue of RMB197.38 billion, up approximately 12.88% from RMB174.73 billion as of December 31, 2023. Despite the revenue growth, the company still faces profitability pressure, with its overall financial condition showing some improvement.

Key Data in the Financial Report

1. The total operating revenue grew by approximately 12.88%, indicating an increase in market demand.

2. The revenue growth may benefit from the increased demand for racing games and related content.

3. The company's marketing strategy may be more effective, attracting more users.

4. The release of new products may directly drive revenue growth.

5. The recovery of the entire gaming industry provides a certain support for the company's performance.

Peer Comparison

1. Industry-wide analysis: In 2024, the global gaming industry is expected to reach a market size of US$189.3 billion, up 2.9% YoY. In particular, racing games with their unique market positioning show continuous growth potential. The demand for racing games has significantly increased in the past year, reflecting users' expectations for high-quality gaming content. [Source](https://finance.sina.com.cn/tech/roll/2024-08-27/doc-inckznkt4380485.shtml)

2. Peer evaluation analysis: Motorsport Games' total operating revenue growth rate is at a mid-level in the industry. Although the growth is significant, some competitors in the industry perform more strongly, which may require further optimization of products and services to enhance market share.

Summary

The growth in Motorsport Games' total operating revenue indicates certain progress in the company's market demand and marketing strategy. However, the company still faces profitability pressure and cash flow issues, which need to be monitored for its future sustainable operating capability.

Opportunities

1. Continue to launch new games and expansion packs to attract more users and increase revenue.

2. Leverage the growth of the e-sports industry to further promote the market for racing games.

3. Optimize products and services to enhance market share, especially in a competitive environment.

4. Strengthen relationships with sponsors and investors to increase funding inflows and support subsequent development.

Risks

1. The company still faces significant loss pressure, with a worrying cash flow situation, which may affect its future operating capabilities.

2. Intensified competition in the industry may lead to a decrease in revenue if it cannot maintain its current market share.

3. The market response to new products and updates is uncertain, which may affect the expected revenue growth.

4. The recovery speed of the entire gaming industry is uncertain, and changes in the external economic environment may affect the company's performance.