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NetDragon Q2 2011 Profit Up 2,757% YoY

PR Newswire Asia, 8/26/11

Fuzhou-based online game developer and operator NetDragon Websoft (0777.HK) today announced its unaudited interim financial results for the period ended June 30, 2011. Net revenue was RMB 184.3 mln, an increase of 17.6 % over Q1 2011, and an increase of 53.4% over Q2 2010.

Profit attributable to owners of the company for the period for Q2 2011 was approximately RMB 43.0 mln, representing an increase of approximately 23.9% from Q1 2011, and an increase of 2,757% compared to Q2 2010.

Revenue from online games was RMB 174.9 mln, an increase of 16.1% QoQ and an increase of 45.6% YoY. Online gaming revenue from mainland China for Q2 2011 was RMB 142.28 mln, up 20.6% QoQ, mainly due to the release of new Chinese expansion pack "Edge of Night" for NetDragon's self-developed 3D MMORPG Eudemons Online. Revenue from overseas was flat QoQ at RMB 32.58 mln.

Revenue from mobile internet was RMB 9.4 mln, up 54.8% QoQ and up 2,250% YoY. The increase was mainly driven by an increase in mobile advertising revenue and an increase in revenue from NetDragon's mobile platforms due to increasing popularity.

Other income and gains of approximately RMB 5.6 mln were recorded for Q2 2011, compared to other income and gains that of approximately RMB 9.9 mln and RMB 9.3 mln for Q1 2011 and Q2 2010, respectively.

Peak concurrent users ("PCU") for online games were 643,000, an increase of 17.8% QoQ. Average concurrent users ("ACU") for online games were 311,000, an increase of 26.4% QoQ.

In Q2 2011, NetDragon released the "Demon Rising" expansion pack for the traditional Chinese version of Eudemons Online in Malaysia, and also released the "Edge of Night" expansion pack for the English version of Eudemons Online and "The Andromeda Crisis" for the English version of its self-developed science fiction-based 2.5D MMORPG Zero Online. "Legend of the Oriental", the new expansion pack for its self-developed 2.5D MMORPG Heroes of Might and Magic, was launched in August.

NetDragon is expecting the following future developments:

• Licensed 3D MMORPG World of Dungeon Keeper started third-round closed beta testing in August, and is expected to enter public open beta testing in October 2011.

• NetDragon's self-developed 3D TPS Transformers Online is expected to be launched in China in spring 2012.

• New expansion packs for self-developed MMORPGs Conquer Online, Eudemons Online, and Zero Online are expected in 2011.

• "The Returning Light" expansion pack for Conquer Online will be launched in Brazil; tablet PC and web browser versions of the English version of Conquer Online are slated for release by year end.

In addition to the above, other online games currently under development include icombo (previously named as Cross Gate) and a new version of Ultima Online.

To view NetDragon's full earnings report, please click here.

Keywords: browser game pipeline Conquer Eudemons Heroes of Might and Magic NetDragon online gaming Zero World of Dungeon Keeper Internet overseas profit revenue open beta MMORPG ACU Brazil Malaysia PCU expansion pack 0777.HK mobile Internet Transformers Online Returning Light Demon Rising TPS Q2 2011 Edge of Night Legend of the Oriental licensed game 2.75G self-developed game 3D game fiscal report 2.5D game

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