KongZhong Revises Q4 2009 Guidance Due to Porn Crackdown

PR Newswire, 12/11/09

Chinese wireless value-added service provider KongZhong (Nasdaq: KONG) has revised fourth quarter guidance downward USD 3 mln to within the range of USD 34 mln to USD 35 mln. The revision is due to new measures it has implemented to assist in the Chinese government's latest anti-pornography campaign, which will negatively impact KongZhong's WAP, mobile Internet and mobile gaming revenues.

As part of the campaign, China Mobile (NYSE: CHL; 0941.HK) and other Chinese telecommunications operators have suspended billing their customers for all WAP and 2.5G mobile gaming platform services, including those services that do not contain offensive or unauthorized content, on behalf of third-party providers of such services. China Mobile and other operators have not yet indicated how long its new measures would last or whether it would expand its current measures.

Keywords: mobile gaming China Mobile guidance pornography wireless Q4 2009 WAP CHL Kongzhong 0941.HK KONG mobile Internet SP regulation WVAS

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