Giant Q3 2008 Net Profit Down 54% YoY
Giant PR, 11/12/08
Chinese online game developer and operator Giant Interactive (NYSE: GA) has announced its unaudited financial results for Q3 2008, with net revenues reaching RMB 265.2 mln (USD 39.1 mln), down 34.6% year-on-year and 47.5% quarter-on-quarter.
Net income for the quarter came to RMB 134.1 mln (USD 19.7 mln), down 53.8% YoY and 61.8% QoQ.
Active Paying Accounts (APA) in the quarter for all online games, which include ZT Online, ZT Online pay-to-play, ZT Online Classic and Giant Online, reached 937,000, a decrease of 31.6% YoY and 46.8% QoQ. Average Revenue Per User (ARPU) for all online games was RMB 282.1, a decrease of 4.4% YoY and 1.3% QoQ. Average Concurrent Users (ACU) for all online games was 543,000, an increase of 9.0% YoY and QoQ. Peak Concurrent Users (PCU) for all online games was 1.58 mln an increase of 70.4% YoY and a decrease of 32.5% QoQ. PCU for ZT Online classic reached 200,000.
Giant chairman and CEO Shi Yuzhu stated that the decrease was largely due to an adjusted gaming structure for ZT Online to emphasize daily consumption rather than the purchase of in-game promotional items. The rationale behind the restructuring is to expand Giant's total user base and therefore drive long-term sustainable growth.
Regarding its games, the company is planning a series of updates to its MMORPG Giant Online, which in addition to new gameplay features, will include dual map boss battles and super weapons systems. The new version is scheduled to roll out by the end of 2008.
It also plans to release Empire of Sports, a 3D MMO, featuring a wide range of sporting events, for closed beta testing in China in the first quarter 2009, and King of Kings III, a 3D free-to-play medieval magical MMO game for limited closed beta testing in China in the first quarter of 2009.
Giant expects Q4 total revenues to be in the range of RMB 320 mln to RMB 345 mln.
To see Giant's full earnings report, please click here.
Keywords: ACU APA ARPU Empire of Sports free-to-play GA Giant Interactive Internet King of Kings III MMORPG pay-to-play profit Q3 2008 revenue Shi Yuzhu ZT Online fiscal report online gaming pipeline
Sending
