Cheetah Mobile (CMCM) reported earnings on Tue 20 Aug 19 (b/o)

** charts after earnings **

 

Posted Q2 results. Co's revs declined 12.1% yr/yr to RMB970.1 mln, exceeding co's guidance, on a non-GAAP diluted income per ADS of RMB0.52. Revenues from utility products and related services fell 44.0% yr/yr to RMB423.5 mln, largely due to the slowdown of co's overseas mobile utility business, resulting from negative publicity, as well as to softness in co's domestic advertising industry. Meanwhile, revenues from co's mobile entertainment business increased +49.6% yr/yr to RMB498.0 mln, featuring +108.5% yr/yr growth in mobile games business revenues to RMB289.2 mln; AI and other revs increased +236.2% yr/yr to RMB48.6 mln, driven primarily by sales of co's AI-based interpretation device, Cheetah Translator. At two-month highs. Also announced a special cash dividend of US$0.50 per ADS.