Kongzhong Expects High Growth in Mobile Gaming
21st Century Business Herald, 2/26/09
Wang Leilei, CEO of Chinese WAP portal and wireless value-added services provider Kongzhong (Nasdaq: KONG), has stated that he hopes mobile gaming revenues will account for 25%-35% of the company's total revenues this year. The bulk of these revenues will come from self-developed games, which have higher profit margins, and Wang expects mobile gaming to account for 35%-40% of gross profit. Wang also mentioned that this year, Kongzhong will operate 80 single-player mobile games, and that the company has a development team of 150 staff working on mobile games. Wang added that the next stage in Kongzhong's market strategy would be to launch a KK Community with free-to-play games and social networking features.
Editor's Note: In Q4 2008, revenues from KongZhong's mobile games came to USD 2.7 mln, accounting for 10% of total revenues.
Keywords: forecast KK Community free-to-play KONG Kongzhong mobile gaming profit strategy Wang Leilei WAP portal wireless revenue self-developed game SNS Web 2.0 WVAS
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