NetDragon Websoft Holdings Limited (777) Earnings Call Transcripts

NetDragon Websoft Holdings Limited's Latest Earnings Call - March 27, 2026

In the fiscal year 2025, NetDragon Websoft Holdings Limited reported a revenue of RMB 4.5 billion, a decline of 26% year-over-year, primarily driven by a 70% drop in gaming and application services revenue. Despite these challenges, the company achieved a significant operating profit growth of 47% in the second half of 2025, reaching RMB 164 million, indicating improved profitability and effective cost management. Management signaled optimism for 2026, highlighting AI as a key growth driver and maintaining a commitment to return at least RMB 600 million to shareholders through dividends and buybacks.

Reported metrics

Guidance from management

Management expects a gradual recovery in demand as market conditions stabilize, with a focus on leveraging AI for growth and maintaining profitability in the education sector.

What management said

Yes. First, yes. Yes. Of course, we know we are in now. So increase our case in the AI area. And when you look at the 2025 or our CapEx about is about RMB 115. So we are honest to buckle our investment in the -- including the AI area. So we expect to have RMB 300 million into the CapEx, including the AI.

What analysts pressed on

Analysts expressed concerns over the significant decline in gaming revenue and the potential impact of geopolitical uncertainties on future growth. There were questions regarding the effectiveness of cost optimization strategies in sustaining profitability amidst declining revenues.

Main topics on the call

• Cost Optimization and Profitability Improvement — NetDragon successfully reduced operating expenses by 28% year-over-year in the second half of 2025, which contributed to a 47% increase in operating profit. Management noted, 'Our OpEx in the second half dropped 28% Y-o-...
• AI Integration for Future Growth — Management emphasized the importance of AI in their future strategy, stating, 'AI is going to do things fully.' They plan to leverage AI not just for cost optimization but also for growth, particularly in gaming and educ...
• Challenges in Gaming Revenue — The gaming and application services segment saw a substantial revenue decline of 70% to RMB 3.3 billion, attributed to ongoing optimization efforts. Management acknowledged, 'This due to the optimization of our fracs IP ...
• Education Sector Developments — Management highlighted ongoing projects in Thailand and Cameroon, focusing on AI-driven educational initiatives. They noted, 'We are moving forward... to use AI to teach people how to use AI tools,' indicating a proactiv...

Read the full NetDragon Websoft Holdings Limited transcript (March 27, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 13 NetDragon Websoft Holdings Limited earnings call transcripts on record, spanning April 1, 2020 to March 27, 2026. Based on this history, NetDragon Websoft Holdings Limited reports semi-annually. The most recent call on file is dated March 27, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

777

Exchange

SEHK

Country

HK

Sector

Communication Services

Industry

Entertainment

Calls on record

13

First call

April 1, 2020

Most recent

March 27, 2026

Reporting cadence

semi-annually