PR Newswire Asia, 11/22/11
Beijing-based online game developer and operator Perfect World (Nasdaq: PWRD) today announced its unaudited financial results for the third quarter ended September 30, 2011. Total revenues were RMB 708.9 mln (USD111.2 mln), down 9.1% QoQ as compared to RMB 779.6 mln in Q2 2011 and up 22.4% YoY from RMB 579.2 mln in Q3 2010.
Net income attributable to Perfect World's shareholders was RMB 143.6 mln (USD 22.5 mln), down 54.6% QoQ as compared to RMB 316.6 mln in Q2 2011 and down 32.8% YoY from RMB 213.7 mln in Q3 2010.
Online game operation revenues, which include both domestic and overseas online game operations, were RMB 643.2 mln (USD 100.9 mln) in Q3 2011, down 9.7% YoY as compared to RMB 712.1 mln in Q2 2011 and up 22% YoY from RMB 527.1 mln in Q3 2010. The sequential decrease in online game operation revenues from Q2 2011 was primarily due to Perfect World's decision to slow down in-game promotional activities for some existing games in the third quarter in order to further enhance the content of Perfect World's portfolio and lengthen the life cycle of its existing games.
The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 828,000 in Q3 2011, as compared to 890,000 in Q2 2011 and 733,000 in Q3 2010. The decrease from Q2 2011 was mainly due to adverse seasonality factors affecting user traffic and Perfect World's enhanced anti-cheating efforts in Q3 2011.
Licensing revenues were RMB 55.8 mln (USD8.7 mln) in Q3 2011, down 9.7% QoQ as compared to RMB 61.8 mln in Q2 2011 and up 14.7% YoY from RMB 48.6 mln in Q3 2010. The decrease from Q2 2011 was mainly attributable to lower usage-based royalty fees due to adverse seasonality in certain overseas markets, and a decrease in initial license fees as Perfect World did not have as many new launches in overseas markets as in Q2 2011.
Other revenues were RMB 9.9 mln (USD 1.6 mln) in Q3 2011, up 76.5% QoQ as compared to RMB 5.6 mln in Q2 2011 and up 178.4% YoY from RMB 3.6 mln in Q3 2010. The increase from Q2 2011 was mainly attributable to revenues generated from Perfect World's developments of certain SNS games.
Perfect World has entered into a definitive agreement to invest in an unnamed venture capital fund as a limited partner for a nine-year period. The fund will primarily focus on investing in companies with high-growth potential in the technology, media and telecommunications sector.
Based on Perfect World's current operations, total revenues for the fourth quarter of 2011 are expected to be between RMB 695 mln and RMB 737 mln, representing a range similar to the revenues in the third quarter of 2011, but still an increase of 18% to 26% on a year-over-year basis.
To view Perfect World's full earnings report, please click here.