Perfect World Q1 2012 Profit Down 20% YoY

   Date:2012/05/31

Beijing-based online game developer and operator Perfect World (Nasdaq: PWRD) today announced its unaudited financial results for the first quarter ended March 31, 2012. Total revenues were RMB 718.5 mln (USD 114.1 mln), down 7.5% QoQ as compared to RMB 776.4 mln in Q4 2011 and flat YoY compared to RMB 718.5 mln in Q1 2011.

Net income attributable to Perfect World's shareholders was RMB 209.8 mln (USD 33.3 mln), down 19.3% QoQ as compared to RMB 260.0 mln in Q4 2011 and down 20.4% YoY compared to RMB 263.7 mln in Q1 2011.

Online game operation revenues, which include both domestic and overseas online game operations, were RMB 665.1 mln (USD 105.6 mln) in Q1 2012, as compared to RMB 706.9 mln in Q4 2011 and RMB 646.2 mln in Q1 2011. For Perfect World's overseas operations, the first quarter was a slower season for in-game monetization activities. For Perfect World's domestic operations, there were no major new launches during the quarter and Perfect World primarily focused on its preparation for the upcoming new game launches and further content enhancements of some existing games in order to lengthen their life cycles.

The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 804,000 in Q1 2012, as compared to 873,000 in Q4 2011 and 905,000 in Q1 2011. The decrease from Q4 2011 was mainly due to adverse seasonality factors affecting user traffic in Q1 2012.

Licensing revenues were RMB 49.2 mln (USD 7.8 mln) in Q1 2012, as compared to RMB 65.6 mln in Q4 2011 and RMB 63.6 mln in Q1 2011. The decrease from Q4 2011 was mainly because Perfect World did not have as many new launches in overseas markets as in Q4 2011.

Other revenues were RMB 4.2 mln (USD 0.7 mln) in Q1 2012, as compared to RMB 3.9 mln in Q4 2011 and RMB 8.7 mln in Q1 2011.

Michael Chi, Chairman and Chief Executive Officer of Perfect World, revealed that 2 of Perfect World's self-developed martial arts MMORPGs, 'Heaven Sword and Dragon Saber' and 'Return of the Condor Heroes' (formerly known as 'Fantasy Condor Heroes'), are expected to be launched in the second half of this year.

Based on current operations, total revenues for the second quarter of 2012 are expected to be between RMB 647 mln and RMB 683 mln, representing a decline from the revenues in the first quarter of 2012.

Source:marbridgeconsulting

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