ICEQUITY
14 years ago
Maybe those ads are working....PWRD Profit Jumps 42%
Chinese Online Game Co Perfect World's 1Q Profit Jumps 42%Font size: A | A | A
6:48 AM ET 5/17/10 | Dow Jones
DOW JONES NEWSWIRES
Perfect World Co. (PWRD) first-quarter earnings rose 42% as the Chinese online game developer and operator saw stronger revenue.
Looking ahead, the company projected second-quarter revenue growth of 14% to 20% to RMB594 million to RMB625 million. Analysts polled by Thomson Reuters recently expected revenue growth of 29% to $98 million.
Although the company had some technical complications during some major updates on a recently launched game, Chairman and Chief Executive Michael Chi said Perfect World solved the problems and is working on a soon-to-be launched major expansion pack with a lot of enhanced content. The company has also been signing new licensing agreements with game operators abroad.
Use of online games has been booming in China. Total revenue in China's online game industry grew an estimated 42% last year to about $3.8 billion, according to Beijing-based research firm Analysys International, which in January predicted the figure will jump to $10.7 billion by 2012. Though China has nearly 400 million Internet users, that still leaves huge potential market growth.
Perfect World reported a first-quarter profit of CNY305.2 million ($44.7 million), or CNY5.75 an American depositary share, up from CNY215.5 million, or 3.96 an ADS, a year earlier. Excluding items such as share-based compensation, earnings rose to CNY6.16 (90 cents) from CNY4.25. Analysts expected 84 cents.
The conversion to U.S. dollars is based on exchange rates in New York as of March 31.
Revenue surged 47% to CNY625 million. The company in March forecasted CNY620 million to CNY644 million.
Operating margin fell to 51.7% from 54.2% as operating costs jumped 55%.
At Perfect World's domestic business, the average number users on Web games at the same time rose 62% while the number of customers increased 14%. Average revenue per customer was up 25%. Average simultaneous users and the number of customers tumbled sequentially amid the technical complications and seasonal factors, though average revenue per customers rose 37% month to month.
Overseas licensing revenue improved 11% from a year earlier, but was down sequentially as the company didn't introduce and new games overseas during the quarter.
Perfect World in March agreed to acquire online-game company C&C Media Co. from Atlus Co. (J.ALU) and other holders for about $21 million, as Perfect World aims to capture more of the Japanese market. It also recently acquired a majority stake in Runic Games Inc. of the U.S. and continues to seek acquisition opportunities.
ADSs closed Friday at $32.94 and didn't trade premarket. They are down 16% this year, more than the broader market.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;
skudaddy
16 years ago
Perfect World Q2 2008 Profits up 214%
Xinhua-PRNewswire, 8/18/08
Chinese online game developer and operator Perfect World (Nasdaq: PWRD) has announced its unaudited financial results for Q2 2008, with total revenues reaching RMB 334.4 mln (USD 48.8 mln), up 157.8% year-on-year and 10.3% quarter-on-quarter.
Net income for the quarter came to RMB 164.5 mln (USD 24.0 mln), up 214.1% YoY and 3.9% QoQ.
Q2 online game operation revenues were RMB 299.4 mln (USD 43.6 mln), an increase of 13.2% quarter-on-quarter, and 168.5% year-on-year.
Aggregate average concurrent users (ACU) for games under operation were approximately 619,000, up 39% YoY, but down 6% QoQ. Active paying customers (APC) for games under the item-based revenue model were approximately 1.5 mln, up 48% YoY, but down 10% QoQ. Average revenue per active paying customer (ARPU) for games under the item-based revenue model was RMB 188, an increase of 92.2% YoY and 24.9% QoQ. The quarterly decreases were attributed to the May 12 earthquake, and the subsequent effect it had on online gaming, including the suspension of game services during 3 days of national mourning.
Overseas licensing revenues were RMB 35.0 mln (USD 5.1 mln), an increase of 92.6% YoY, but a decrease of 9.5% QoQ.
The company estimates Q3 2008 revenues will range between RMB 368 mln and RMB 385 mln. This represents a quarterly increase of 10% - 15%.
To view Perfect World's full Q2 2008 results, please click here.