Perfect World Q3 2012 Profit Down 40% YoY
Perfect World, 11/19/12
Beijing-based online game developer and operator Perfect World (Nasdaq: PWRD) has announced its financial results for the third quarter ended September 30, 2012. Q3 2012 revenues were RMB 695.8 mln (USD 110.7 mln), up 2.8% QoQ from RMB 676.4 mln in Q2 2012 and down 1.8% YoY from RMB 708.9 mln in Q3 2011.
Net income attributable to the company's shareholders was RMB 86.2 mln (USD 13.7 mln), down 45.5% QoQ from RMB 158.2 mln in Q2 2012 and down 40.0% YoY RMB 143.6 mln in Q3 2011.
Online game operation revenues, which include both domestic and overseas online game operations, were RMB 608.2 mln (USD 96.8 mln), as compared to RMB 626.4 mln in Q2 2012 and RMB 643.2 mln in Q3 2011. In the third quarter, the company decelerated in-game promotional activities and continued to focus on content enhancements in order to maintain a healthy life cycle for its existing games.
Licensing revenues were RMB 39.0 mln (USD 6.2 mln), as compared to RMB 46.9 mln in Q2 2012 and RMB 55.8 mln in Q3 2011. The decrease from Q2 2012 was mainly due to lower initial license fees as the company did not launch any new games through its partners in overseas markets in Q3 2012.
Other revenues were RMB 48.6 mln (USD 7.7 mln), as compared to RMB 3.0 mln in Q2 2012 and RMB 9.9 mln in Q3 2011. The increase from Q2 2012 was primarily due to the contribution from the English version of MMORPG "Torchlight II," which was released in Q3 2012 and designed by the company's US-based majority-owned subsidiary Runic Games.
The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 601,000, as compared to 739,000 in Q2 2012 and 828,000 in Q3 2011. During late second quarter and throughout the third quarter, the company stepped up its anti-cheating efforts for certain games in order to maintain a healthy and fun gaming environment for players. The decrease in ACU from Q2 2012 was attributed to such stringent anti-cheating efforts, as well as adverse seasonality factors affecting user traffic during the third quarter.
In October 2012, the company obtained exclusive rights to operate Valve's action real-time strategy video game "DOTA 2" in mainland China. Toward the end of the third quarter, Perfect World launched turn-based martial arts MMORPG, "Return of the Condor Heroes," in China. This new title is adapted from Louis Cha's Chinese-language literary classic of the same name. Perfect World released expansion packs for its two 3D MMORPG flagship titles, "Zhu Xian" and "Perfect World II," toward the end of the third quarter.
Perfect World is currently developing a number of new MMORPGs, including "Swordsman Online," "Saint Seiya Online" and "Legend of the Condor Heroes." The company's US-based Cryptic Studios subsidiary is currently developing MMORPG "Neverwinter," which will initially launch in North America.
Total revenues for the fourth quarter of 2012 are expected to be between RMB 661 mln and RMB 696 mln, representing a flat to slight decline from the third quarter of 2012.
To view the complete report please see here.
Keywords: Torchlight II Neverwinter Perfect World World II Swordsman Zhu Xian Internet profit Runic Games PWRD Return of the Condor Heroes Saint Seiya Cryptic Studios DOTA 2 Valve Legend of the Condor Heroes Q3 2012 online gaming revenue fiscal report
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