PPStream: 2009 Revenues to Reach RMB 70-80 Mln

Beijing Business Today, 6/10/09

Xu Weifeng, president of Shanghai-based P2P video service provider PPS (PPStream), has said he expects annual company revenue this year to reach between RMB 70 mln and RMB 80 mln. Although the first quarter is normally the slowest quarter in China, PPS's Q1 2009 revenue grew by 200% compared to Q4 2008, and 300% compared to Q1 2008. According to Xu, the increases are due to continued growth of online game advertising as well as large increases in advertising from the automotive, fast-moving consumer goods, medicine, and cosmetics sectors. Online game advertisements currently account for 50% of total advertising revenue at PPS, down from previous levels of around 60%. Owing to growth in advertising revenue, PPS has achieved profitability in the last two months, with profits in the RMB 6-figure range.

Registered users of PPS browser games now number 2 mln, with that number expected to grow to 6 mln this year. Xu stated that the company is not currently considering the development of 3G mobile services.

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