NetDragon Websoft Inc. Announces First Quarter 2013 Financial Results

5 June 2013 20 h 49 min Comments Off


(Iresearchchina, Jun 04, 2013) NetDragon Websoft Inc. (“NetDragon”, Stock code: 777), a leading developer and operator of online games and mobile internet platforms in China, today announced its financial results for the first quarter ended March 31, 2013 and is scheduled to hold a conference call and live webcast on June 3, 2013 at 7:00pm Hong Kong Time / 7:00am Eastern Daylight Time to review the company’s performance and recent business developments.

First Quarter 2013 Financial and Operational Highlights

Total revenues were RMB 356.7 million, an increase of 7.8% over the fourth quarter of 2012 (“QoQ”) and an increase of 50.5% over the first quarter of 2012(“YoY”);
Revenue from Online Games was RMB 212.0 million, a decrease of 7.5% QoQ and an increase of 10.7% YoY;
Revenue from Mobile Internet was RMB 144.7 million, an increase of 42.0% QoQ and an increase of 218.8% YoY;
Gross profit was RMB 310.1 million, an increase of 4.5% QoQ and an increase of 48.6% YoY;
Operating profit was RMB 128.1 million, an increase of 6.3% QoQ and an increase of 77.4% YoY;
Non-GAAP operating profit1 was RMB175.5 million, an increase of 26.6% QoQ and an increase of 114.1% YoY;
Profit attributable to the owners of the Company was RMB 111.8 million, an increase of 100.4% YoY;
Non-GAAP profit attributable to owners of the Company was RMB 136.2 million, an increase of 26.4% QoQ and an increase of 84.1% YoY;
Profit for the period was RMB116.4 million, an increase of 108.3% YoY;
Non-GAAP profit for the period was RMB 140.8 million, an increase of 30.8% QoQ and an increase of 90.1% YoY;
Basic earnings per share were RMB 22.19 cents, diluted EPS were RMB 16.91 cents;
Peak concurrent users (“PCU”) for online games were 445,000, a decrease of 14.6% QoQ and a decrease of 25.8% YoY;
Average concurrent users (“ACU”) for online games were 237,000, a decrease of 17.4% QoQ and a decrease of 20.2% YoY.
1 See “Non-GAAP Financial Measures” section for more details on the reasons for presenting these measures
Mr. Liu Dejian, Chairman and Executive Director of NetDragon, commented: “The first quarter of 2013 witnessed NetDragon’s continued growth in total revenues and net profit. Total revenues grew 7.8% quarter over quarter to RMB 356.7 million, and net profit up 108.3% year over year. We are pleased to see our duel-engine strategy on online games and mobile Internet businesses has been paid off as evidenced by our strong results. The stable structure as a result of the two businesses mutually supporting each other is expected to strongly enhance our company’s long-term development.”
“As for our online games business, our company further optimized the resource allocation for projects, and focused more on depth development of core titles while maintaining a steady flow of new products in the development pipeline, with the aim of consolidating the existing gamer base through the company’s core games, and laying the groundwork for new player acquisition. In addition, NetDragon has launched EPs in different languages to strengthen our key titles’ revenue in overseas markets. In this quarter, overseas sales from game markets saw a 9.4% rise quarter-over-quarter.”
“2013 is essential to the establishment of mobile internet footprint. Although Internet companies have accelerated the pace of their engagement in mobile segment, our mobile business maintained the leading position across the industry through our pioneering efforts and ongoing innovation. Mobile delivered revenue up to RMB 144.7 million in this quarter, an increase of 42.0% quarter-over-quarter. Notably, 91 Wireless’ platforms exceeded over 10 billion accumulated app downloads, evidencing its user stickiness and superiority over competitive offerings. The company continues to focus on strengthening the advantages of 91 Assistant and HiMarket platforms while steadily driving proprietary research and development of mobile games and software products and providing more vertical apps to stay in tune with users’ increasingly diversified needs. For all this, we are continuing to broaden cooperation with the industry’s leading vendors. The management believes that with the continuous increasing user base and user loyalty, our mobile business is anticipated to delivering more revenue and further pleasant surprises.”

First Quarter 2013 Business Highlights

Mobile Internet
91 Wireless’ platforms had surpassed over 10 billion accumulated app downloads.
On March 27, 2013, 91 Wireless Websoft Limited converted each issued and outstanding preferred shares into fully-paid non-assessable ordinary shares at the conversion rate for each preferred share.
91 Wireless’ HiMarket launched “Android Weekly” cooperation model, through which HiMarket collaborated with industry-leading e-reader vendors by providing content, in a move to enrich 91 content and enlarge our community base.

Online Games
As of the first quarter, NetDragon had 10 self-developed mobile games, by leveraging our existing superior resources and years of game R&D experience. More other self-developed mobile games are on track to be launched.
The iOS version of “Crazy Horde”, featuring a fresh, lovely and artistic style based on  primitive society, entered beta testing in March 2013. Its Android version is expected to conduct testing in the second half of 2013, in an aim to roll out this game in the global market.
The iOS paid version of NetDragon’s self-developed strategic game “War of Gods”  launched in January 2013. Inspired by Chinese myths, “War of Gods” integrates casual games and real-time combat interaction.
NetDragon launched multilingual versions of Conquer Online EP “The Oriental Assassin”, including versions in English, French, Spanish and Arabic.

Recent Developments and Business Outlook

Mobile Internet
iPhone 5.0 version of 91 Panda Reader was launched in May 2013. The version’s ease of use and speedy responsiveness contribute significantly to a highly improved overall user experience.

Online Games
Zero Online’s new Chinese EP “Doom Savior*” was launched on 31 May.
Eudemons Online’s new EP “Dawn of Romance” entered its open beta testing on 28 April. The new EP featured with a focus on love and marriage is meant to resonate with each player’s emotional side. The new EP received a warm response, evidencing the classic title’s ongoing popularity. Eudemons Online’s new Portuguese EP “Edge of Night” will also be launched in June.
The mobile version of “Age of Egmont”, “Age of Egmont: Pocket Version” entered the closed beta testing on 28 March. Versions with different game experiences will be offered through several platforms including PC, iOS and Android.
“Caliber of Spirit”, the world’s first next generation 3D MOBA online game based on NetDragon’s in-house developed S3 game engine, supports PC, web and mobile platforms and features seven industry-leading innovative technologies, has been available on Tencent’s game platform since May.
“Sky Battle*”, a 2.5D role-play mobile game based on NetDragon’s in-house developed C3 game engine, entered a non-data-deleted testing for its iOS version in May.

To supplement the consolidated results of the Group prepared in accordance with HKFRSs, the use of certain non-GAAP measures is provided solely to enhance the overall understanding of the Group’s current financial performance. These non-GAAP measures are not expressly permitted measures under HKFRSs and may not be comparable to similarly titled measures for other companies. The non-GAAP financial measures of the Group exclude share-based payment expense, interest income on pledged bank deposit, exchange gain on pledged bank deposit, secured bank loan and redeemable convertible preferred shares, net loss on derivative financial instruments and finance costs.

full press release

Related posts:

Comments are closed

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →