October 13 news, music Watch published notice, the first three quarters of the expected loss of 16.58 to 16.63 billion, the company's advertising revenue fell sharply, the terminal income and membership income are a significant decline.
According to the original music network announcement, music as a year on the same period the profit reached 492 million yuan.
In view of the reasons for the changes in performance, music Watch pointed out in the report, the reporting period, due to the associated party funds, liquidity turmoil, social public opinion continued to expand and expand the company's reputation and credit impact, the company's advertising revenue A sharp decline.
At the same time, due to the debt risk of related parties, cash flow tension spread to the company's supplier cooperation system, from the product for 2 should be issued to the account and other negative pressure, the company's terminal income and membership income are a significant decline. However, the Company's daily operating costs, such as CDN and bandwidth costs, and amortization expenses (copyright amortization), have not been reduced. At the same time, the cost of financing increased during the reporting period, and the financial expenses were higher. Compared with the same period, an increase of about 50%.
The above reasons led to the company in the first half of 2017 operating loss of about 1.6 billion.
The following is the music as the original announcement: