FountainVest backs China online ticketing player Maoyan

The size of the investment was not disclosed and Maoyan has yet to make a regulatory filing giving more details. Maoyan’s CEO, Zhihao Zheng, co-invested in the transaction using personal funds, according to a statement.

Maoyan operates China’s leading ticketing app with more than 250 million users. It generated RMB32.7 billion in online ticketing gross merchandise value (GMV) in 2018, up from RMB22 billion the previous year. The company receives a service fee of 4-8% on each ticket sold, which translated into RMB2.28 billion in revenue for 2018. Maoyan remains unprofitable due to substantial operating costs in the form of fees paid to ticketing system players that connect the online platform to the cinema.

Steps are being taken to try and diversify the business. The revenue share for online ticketing fell from 60.6% in the first six months of 2018 to 54.6% in the comparable part of last year, largely due to more activity in entertainment content services. Maoyan is involved in the distribution, promotion, and production of TV series and movies, recently serving as co-producer on local releases such as “Kill Mobile,” “White Snake,” and “Pegasus.”

The company has also pushed into professional services, offering entertainment industry data, information and analysis services, a project management platform, and a financing business that supports content development. These account for a very small portion of revenue. In-venue food and beverage sales and advertising services are currently more significant.

"Starting from its initial business in online entertainment ticketing, Maoyan has grown into a leading integrated entertainment service platform with multiple drivers for growth,” said George Chuang, co-president of FountainVest.

Maoyan was launched in 2012 by Meituan-Dianping and spun out in 2016. The online-to-offline services platform still uses the company as its exclusive movie ticketing channel. In 2017, the company merged with Tencent Holdings-backed Weiying Times Technology, which led to partnerships with WeChat.

Maoyan raised HK$2.25 billion ($287.1 million) in its IPO, selling 152.2 million shares for HK$14.80 apiece. As of midday on January 16, the stock was trading at HK$15.80. At the time of the IPO, Tencent held a 14.05% stake, Meituan-Dianping had 7.34%, Beijing Enlight Media had 42.15%, and CMC Capital Partners had 2.6%.

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• Topics
• Greater China
• PIPEs
• Technology
• Consumer
• Media
• China
• Fountainvest Partners