Marbridge Daily

<- February 15, 2011 ->

Sky-Mobi Q3 FY2011 Profit Reaches RMB 185 Mln

Sky-Mobi PR, 2/14/11

Hangzhou-based mobile software platform developer Sky-Mobi (Nasdaq: MOBI) announced today its unaudited financial results for the fiscal third quarter ended December 31, 2010. Total revenues for the quarter increased 2.5% YoY to RMB 161.2 mln (USD 24.2 mln) compared to RMB 157.2 mln for third quarter FY2010.

Net profit in third quarter 2011 was RMB 184.7 mln (USD 27.7 mln) compared to a loss of RMB 27.9 mln in third quarter 2010.

Application store revenues reached RMB 136.6 mln (USD 20.5 mln) in third quarter 2011, representing 84.8% of total revenues, down 9.4% YoY from third quarter 2010.

Sky-Mobi had 3.5 bln user visits and 846 mln downloads of applications and content from the Maopao application store in third quarter 2011, an increase of 155.8% YoY and 91.0% YoY, respectively, compared to 1.4 bln user visits and 406 mln downloads in third quarter 2010. The fast growth in application store user activity was offset by lower store activity monetization as a result of (i) policies introduced by mobile network operators requiring multiple confirmations on SMS-based purchases of mobile applications and content, including triple-confirmation introduced in September 2010 and (ii) difficulties encountered by users of one mobile network in accessing Sky-Mobi's servers hosted by a competing telecommunication network operator, which was subsequently addressed by Sky-Mobi's internal server migration in October 2010.

Revenues from mobile SNS Maopao Community's virtual currency ("K Currency") were RMB 19.1 mln (USD 2.9 mln), up 1,497.7% from third quarter 2010 and contributing 11.9% of total revenue in third quarter 2011.

Maopao Community had 58.6 mln registered users, 10.4 mln active members and 761.2 mln member log-ins in third quarter 2011, an increase of 205.9% and 187.9%, respectively, compared to 3.4 mln active members and 264.4 mln member log-ins in third quarter 2010. Revenues from the community increased due to fast growth in the number of active members as well as increased spending per active member resulting from the success of mobile social game "Fantasy of Three Kingdoms." Sky-Mobi expects that Maopao Community revenues through K Currency will contribute an increasing percentage of total revenues in the quarters ahead as Sky-Mobi continues to focus on growing its active mobile community member base and on diversifying revenue collection away from carrier-based payment channels.

For the fiscal fourth quarter 2011 ending March 31, 2011, Sky-Mobi expects total revenues to be in the range of RMB 165 mln to RMB 171 mln.

Total revenues for the fiscal year ending March 31, 2011 are expected to be in the range of RMB 663 mln to RMB 669 mln.

For Sky-Mobi's full earnings report, please click here.

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