KongZhong Reports Q3 2012 Profit of USD 6.2 mln
KongZhong, 11/15/12
Chinese mobile Internet and online gaming company KongZhong (Nasdaq: KONG) has announced its financial results for the three months ended September 30, 2012. Total revenues for the quarter were USD 49.91 mln, up 28.0% YoY from USD 38.98 mln in Q3 2011 and down 0.2% QoQ from USD 50.0 mln
Net income was USD 6.22 mln, as compared to a loss of USD 17.26 mln in Q3 2011, but down 21.2% QoQ from net income of USD 7.89 mln in Q2 2012.
WVAS revenues were USD 23.10 mln, a 10.3% increase QoQ from Q2 2012. Q3 2012 WVAS revenues saw a sequential uptick in lower margin 2G services. WVAS revenue made up 46.3% of total revenues.
Total mobile game revenues were USD 5.26 mln, a 15.2% decrease QoQ from Q2 2012.
Feature phone mobile games revenues were USD 3.48 mln, compared to USD 4.86 mln in Q2 2012 or a 28.4% QoQ decrease. The company's mobile operator partners continued to implement strict operating policies and continued their de-emphasis of marketing feature phone mobile games. Kongzhong sees these difficulties continuing in Q4 2012 for its legacy feature-phone mobile game business.
Smartphone mobile game revenues were USD 1.78 mln, a 33.1% increase QoQ from Q2 2012, representing 33.8% of total mobile game revenues. Up to the end Q3 2012, the company's smartphone mobile games have been downloaded over 25.0 mln times cumulatively. Kongzhong averaged over 1.5 mln monthly smartphone game active users.
Mobile game revenues made up 10.5% of total revenues.
Internet Game revenues were USD 21.56 mln, a 144.6% increase YoY. Revenues from licensed third-person shooter World of Tanks (WoT) continued to grow in Q3 2012, while revenues from self-developed games and overseas game revenues declined significantly as the company has re-focused its efforts on domestic game development towards more differentiated Internet game genres and smartphone games.
Domestic internet game revenues were USD 20.32 mln, a 161.3% increase YoY from the same period last year, but a 2.8% decrease QoQ from Q2 2012. The sequential decrease in domestic revenues was mainly due to the revenue decrease of several self-developed games, including 3D MMORPG Kung Fu Hero. Overseas internet game revenues were USD 1.24 mln, a 36.7% decrease QoQ from Q2 2012. Total overseas revenues as a percentage of total internet game revenues were 5.7%, as compared to 8.5% in Q2 2012.
China online game operations achieved average concurrent users (ACUs) of 286K and aggregated paying accounts (APAs) of 781K with quarterly average revenue per user (ARPU) of RMB 165. ACUs were up 82% YoY from the same period last year.
The company expects total revenues for Q4 2012 to be within the range of USD 43 mln to USD 44 mln.
To view the complete report please see here.
Keywords: online gaming Internet overseas profit revenue wireless WVAS active users KongZhong KONG World of Tanks Kung Fu Hero Q3 2012 mobile gaming fiscal report SP
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