Chinese games giant to book $1 billion gain
HONG KONG – Chinese online games giant NetDragon Websoft unveiled net profits of $23.4 million (RMB143 million) for the three months to end September and profits of $67.4 million (RMB412 million) for the first nine months of the year.
Both figures contained a large component from a mobile internet business that it sold after the reporting period and compared with $15.5 million (RMB95 million) and $32.1 million (RMB196 million) respectively.
Revenues from continuing operations were $35.8 million (RMB 219 million) for the quarter and $107 million (RMB656 million) for the nine month period.
NetDragon, which is listed on the Hong Kong Stock Exchange, said it will book an exceptional gain of $1.09 billion (RMB6.66 billion) from the sale of its 91 Wireless business to Baidu on Oct 1.
The sale leaves the company as a more nearly pure-play games outfit with roughly 90% of its business currently derived from mainland Chinese gamers. It acknowledges too that competition between games developers is increasing and that it will need to keep updating its titles with upgrades and foreign-language editions.
It recently launched “Gods Recovery” as an expansion pack for its successful “Eudemons Online” and is currently beta testing an Android traditional Chinese version of its “Crazy tribe MMORPG. Next significant new game will be “Age of Egmont” (previously tested as “Age of Emblem.”