NQ Mobile Q3 2012 Profit Falls to USD 0.3 Mln
NQ Mobile, 11/12/12
Chinese mobile security provider NQ Mobile (NYSE: NQ) has released its financial results for the three months ended September 30, 2012. Net revenues in the third quarter of 2012 were USD 25.8 mln, an increase of 127.4% YoY from USD 11.3 mln in the third quarter of 2011 and an increase 29.3% QoQ from USD 20.0 mln in the second quarter of 2012. Excluding revenues of USD 4.5 mln from enterprise mobile services provider NationSky, net revenues increased 88.0% YoY and 15.0% QoQ to USD 21.3 mln.
Net income attributable to NQ Mobile was USD 0.3 mln in the third quarter of 2012, down 93.0% YoY from USD 4.3 mln in the third quarter of 2011 and down 85.7% YoY from income of USD 2.1 mln in the second quarter of 2012.
Net revenues from premium mobile Internet services increased 77.4% YoY and 14.2% QoQ to USD 18.4 mln in the third quarter of 2012. The increases were primarily due to the strong and steady growth in the number of paying user accounts, which reflected growth in the number of registered and active user accounts, as well as increased use of NQ Mobile's premium services, particularly among overseas paying user accounts, which generally pay a higher subscription rate. Revenue contribution from overseas users accounted for 54.1% of total net revenues from premium mobile Internet services in the third quarter of 2012, compared with 49.6% in the third quarter of 2011, and 51.2% in the second quarter of 2012.
Net revenues from other services in the third quarter of 2012, which include revenues from NationSky, increased 642.6% YoY and 91.4% QoQ to USD 7.4 mln. Excluding the revenues of USD 4.5 mln from NationSky, net revenues from other services were USD 2.9 mln, representing an increase of 196.5% YoY and 19.7% QoQ. The increases were mainly due to the growth in revenues from secured download and delivery services for mobile applications produced by third parties. The revenues from NationSky increased 218.0% QoQ to USD 4.5 mln in the third quarter due to the strong growth in its enterprise business and new customer gains. Excluding revenues from NationSky, net revenues from other services as a percentage of total net revenue was 13.9% in the third quarter of 2012, compared with 8.8% in the third quarter of 2011 and 13.4% in the second quarter of 2012.
The company expects net revenues to be in the range of USD 28.5 mln and USD 29.5 mln for the fourth quarter of 2012.
To view the complete report please see here.
Editor's Note: For more background on this topic, please see "NQ Mobile Closes NationSky Acquisition" MD 5/29/12 issue. Founded in 2005, NationSky is a provider of mobile services to more than 1,000 enterprises in China. Working with carriers and smartphone platform providers, NationSky delivers device-agnostic managed mobile services, mobile device management services and other mobile SaaS services.
Keywords: profit revenue security wireless mobile Internet NQ NQ Mobile NationSky Q3 2012 fiscal report anti-virus
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