KongZhong Q4 2009 Profit Up 286% YoY
KongZhong News Release, 3/16/10
Chinese mobile Internet company KongZhong (Nasdaq: KONG) has announced its unaudited fourth quarter 2009 and full year 2009 financial results. Total revenues for Q4 2009 increased 28% year-over-year to USD 34.3 mln. Net income increased 286% YoY to USD 2.02 mln.
WVAS revenues in Q4 2009 increased 9% from Q4 2008 to USD 25.27 mln but were down slightly compared to Q3 2009. Revenues from 2.5G services accounted for approximately 19% of total WVAS revenues compared to 20% in Q3 2009, while revenues from 2G services represented the remaining 81% in Q4 2009. The small decrease in WVAS revenues in Q4 2009 compared to Q3 was primarily due to new Chinese mobile operator policies implemented at the end of November 2009 which led to the suspension of certain billing platforms including WAP and the G+ mobile gaming platform.
Total mobile game revenues in Q4 2009 were USD 7.35 mln, a 172% increase from the same period last year but roughly a 10% decrease from Q3 2009. Revenues from mobile multi-player online games were USD 0.83 mln, an increase of 27% from the same period last year but a decrease of 26% from Q3 2009.
Wireless Internet service ("WIS") revenues were USD 1.72 mln in Q4 2009, representing an increase of 117% from the same period last year and increase of 14% from Q3 2009. In Q4 2009, 40% of WIS revenues were from wireless advertising with the remaining 60% of revenues were from premium services on the Kong.net mobile Internet site and revenues coming from KongZhong's newly acquired online literature site, Zhulang.com.
The company's total headcount increased to 1,002 as of December 31, 2009 compared to 922 as of September 30, 2009 with product development team increases continuing to make up the majority of overall headcount growth.
For the full year 2009, total revenues were USD 131.30 mln. Net income in 2009 was USD 12.58 mln, compared with 2008 net loss of USD 20.66 mln.
For the 3-month period ending March 31, 2010, KongZhong expects total revenues to be roughly USD 37.5 mln with WVAS at USD 24 mln, mobile games as USD 8.5 mln, Wireless Internet services at USD 1.0 mln and KongZhong's newly formed Internet online game business unit which results from the acquisition of Dacheng Networks with USD 4.0 mln in revenues.
For KongZhong's full report, please click here.
Keywords: HR guidance Dacheng mobile gaming Internet profit Q4 2009 online literature WVAS Kong.net Kongzhong KONG mobile Internet Zhulang SP online gaming revenue fiscal report M&A
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