At the early hours of April 27th, LeTV's 2017 annual report and the 2018 first quarter report delayed for two days finally appeared. Although the two reports were previously postponed, LeTV revealed that there will be a lot of losses. But after seeing the specific figures, everyone still feels a bit surprised.
According to the annual report published by LeTV, LeTV's revenue was 7.025 billion yuan in 2017, which was a 68% drop from 2016; its net loss amounted to 13.878 billion yuan, which is a very worrying situation. It was shown in the first quarterly report of LeTV.com. In the first three months of this year, revenue was only RMB 437 million, which was a decrease of 89.41% year-on-year.
Faced with the status quo of loss of performance, LeTV believes that this is due to the capital crisis in the fourth quarter of 2016. The reasons for the capital crisis are related to the tight funding of related parties, and the impact of public opinion on the decline in corporate credit rating.
How does LeTV's funding problem be solved? In fact, just a few days ago, there were reports that more than ten companies including Tencent, Jingdong, Suning, and TCL had invested RMB 3 billion in LeTV’s new investment. Although the amount of funds is small, For LeTV, it may also be able to solve the pressing need.
In spite of this, thanks to the previous 'eco-subsidy', LeTV has entered thousands of consumer homes. Tencent recently signed an agreement with LeTV New to launch service cooperation in the video industry. The revenue generated by television and the income from membership, advertising, etc., extends to LeTV business.
In the face of such a grim situation, where is LeTV's front?
