Welcome!

Agile Computing Authors: Elizabeth White, Liz McMillan, ManageEngine IT Matters, Steven Lamb, Sematext Blog

News Feed Item

NetDragon Websoft Inc. Announces 2012 Third Quarter Results

3Q Total Revenues Recorded New High

HONG KONG, Nov. 23, 2012 /PRNewswire/ -- NetDragon Websoft Inc. ("NetDragon"; Stock Code: 777), a leading developer and operator of online games and mobile internet platforms in China, today announced its unaudited financial results for the third quarter ended September 30, 2012. A conference call and webcast is scheduled for November 23, 2012 at 7:00 pm Hong Kong time (6:00 am ET, November 23) to review the company's financial results and recent business developments.

Third Quarter 2012 Financial and Operational Highlights

  • Total Revenues* were RMB290.1 million, an increase of 11.7% over the second quarter of 2012 ("QoQ") and an increase of 43.8% over the third quarter of 2011 ("YoY");
  • Revenue from Online Games was RMB204.0 million, an increase of 1.5% QoQ and an increase of 11.2% YoY;
  • Revenue from Mobile Internet* was RMB86.1 million, an increase of 46.2% QoQ and an increase of 370.9% YoY;
  • Gross profit was RMB252.8 million, an increase of 8.2% QoQ and an increase of 36.9% YoY;
  • Operating profit was RMB127.0 million, an increase of 43.8% QoQ and an increase of 114.9% YoY;
  • Profit attributable to Owners of the Company was RMB95.4 million, an increase of 111.8% QoQ and an increase of 91.7% YoY;
  • Pro Forma Net Profit was RMB117.6 million, an increase of 71.2% QoQ and an increase of 133.4% YoY;
  • Basic earnings per share ("EPS") were RMB18.95 cents, while diluted earnings per share were RMB18.87 cents;
  • Peak concurrent users ("PCU") for online games were 525,000, a decrease of 9.8% QoQ and a decrease of 7.7% YoY;
  • Average concurrent users ("ACU") for online games were 281,000, a decrease of 8.5% QoQ and a decrease of 6.3% YoY;
  • Total users of 91 Assistant were 127 million, an increase of 27.2% QoQ and an increase of 253.4% YoY;
  • Total users of HiMarket exceeded 48 million, an increase of 57.5% QoQ and an increase of 599.7% YoY.

* The company has revisited the accounting policies of its mobile Internet business, and determined to present 91 mobile platform revenues derived from third party apps and content with cooperation partners on a net basis instead of gross basis. Management believes this will result in more relevant information about the core financial and operational performance of the mobile internet segment. Restated revenue figures net of cooperation fee for prior reporting periods are provided below

Mr. Liu Dejian, Chairman and Executive Director of NetDragon, commented "In the third quarter of 2012, NetDragon maintained stability in online games and robust growth in mobile internet business. Total revenues hit a new high, growing 11.7% quarter-over-quarter to RMB290.1 million; net profit grew 111.8% quarter-over-quarter.

"Our revenue from online games increased approximately 1.5% quarter-over-quarter,aided by release of an expansion pack for Eudemons Online in September. As the traditional online games market matures, we will continue to support our flagship titles but shift our emphasis towards mobile and web games production. We believe that the increasingly enriched product portfolio will help our company maintain solid growth in online games going forward.

"Our mobile internet business maintained its industry-leading position, increasing its revenue by 46.2% quarter-over-quarter. After focusing primarily on user acquisition since our mobile platform's inception in 2008, we now see our business entering a period of fast-growing monetization. Moreover, we are excited about our leadership role in the mobile internet world, and wholeheartedly accept the challenges and opportunities that lie ahead in fashioning a healthy and dynamic win-win mobile internet ecosystem in China and beyond."

Third Quarter 2012 Business Highlights

Mobile Internet

  • "91 Assistant", NetDragon's applications distribution platform for all mainstream operating systems, reached 127 million total users. Total users for "HiMarket", NetDragon's Android applications distribution platform, exceeded 48 million.
  • Total apps and content exceeded 700,000 and aggregate downloads surpassed 9.5 billion, which ranks NetDragon as China's largest mobile applications distribution platform.
  • 91 Open Mobile Platform launched more than 300 mobile games, with total registered users exceeding 9 million.
  • 91 DeNA, the joint venture between 91 Mobile and Japan's largest mobile social gaming platform operator DeNA Co., Ltd., launched its first self-developed game "Legend of Cavalry" and localized titles including "Fantasica", "Emblem of the Gods" and "Rites of Delta".

Online Games

  • Eudemons Online's new Chinese EP was officially launched.
  • Disney Fantasy Online's new EPs were launched in August and September 2012, respectively.
  • The Arabic version of "DDTank" for which NetDragon serves as an agent, officially launched its open beta testing on September 20.

Recent Developments and Business Outlook

Mobile Internet

  • 91 Limited and China's leading TMT social media DoNews jointly held "Symposium on Trend of Mobile applications on Android Platform & 2012 First China Android Business Summit", aiming to build an Android ecosystem in China.
  • NetDragon launched its quarterly report titled "Trend of Mobile Applications on 91 Mobile Internet" in a move to provide macro data that assists mobile developers and advertisers.

Online Games

  • New expansion packs for "Heroes of Might and Magic Online" and "Tou Ming Zhuang Online" are scheduled for the fourth quarter of 2012.
  • NetDragon's 2.5D MMORPG "Crazy Tribes" set in an ancient era underwent its closed beta testing in September 2012 and is scheduled for its first open beta testing in November 2012.

Others

  • As of September 30, 2012, "91 Application Center for Children" exceeded 35 million totaled aggregate downloads, on which over 4000 applications are available for kids created by developers both in and outside of China. Android version of the Center will be introduced this year.

Financial Highlights:

RMB('000)

3Q 2012

2Q 2012

3Q 2011

QoQ(%)

YoY(%)

Revenue (Restated)

290,144

259,849

201,812

11.7%

43.8%

-Online Games

204,067

200,992

183,533

1.5%

11.2%

-Mobile Internet (Restated)

86,077

58,857

18,279

46.2%

370.9%

Gross Profit

252,786

233,675

184,696

8.2%

36.9%

GPM

87.1%

89.9%

91.5%

-2.8%

-4.4%

Operating Profit

126,958

88,289

59,077

43.8%

114.9%

Net Profit

95,285

44,986

49,854

111.8%

91.1%

Pro Forma Net Profit

117,580

68,683

50,380

71.2%

133.4%

NPM

32.8%

17.3%

24.7%

15.5%

8.1%

EPS-Basic (RMB cents)

18.95

8.75

9.48

116.6%

99.9%

EPS-Diluted (RMB cents)

18.87

8.73

9.48

116.2%

99.1%

* Restated Revenue Figures

RMB ('000)

2Q 2012

1Q 2012

4Q 2011

3Q 2011

2Q 2011

1Q 2011

Total Revenues (Unrestated)

276,133

236,975

217,176

202,739

184,304

156,755

Total Revenues (Restated)

259,849

227,310

212,171

201,812

184,642

156,904

Mobile Internet Revenue (Unrestated)

75,141

45,394

24,663

19,206

9,441

6,099

Mobile Internet Revenue (Restated)

58,857

35,729

19,658

18,279

9,779

6,248

Metrics

Online Games


3Q 2012

2Q 2012

1Q 2012

4Q 2011

3Q 2011

2Q 2011

PCU

525,000

582,000

600,000

612,000

569,000

643,000

ACU

281,000

307,000

297,000

310,000

300,000

311,000

Pro Forma Financial Measures

To supplement the consolidated results prepared in accordance with Hong Kong Financial Reporting Standards, certain pro forma financial measures, namely Pro Forma Net Profit, have been presented in this press release. These unaudited pro forma financial measures should be considered in addition to, not as a substitute for, measures of the Group's financial performance prepared in accordance with HKFRS. In addition, these pro forma financial measures may be defined differently from similar terms used by other companies.

Management believes that the pro forma financial measures provide investors with useful supplementary information to assess the performance of the Group's core operations by excluding certain non-cash items, namely valuation loss on derivative financial instruments and finance costs, on a non-tax adjusted basis, both items associated with convertible preferred shares and promissory notes issued by a subsidiary.

Management Conference Call

NetDragon will host a management conference call and webcast to review its financial results for the third quarter ended September 30, 2012 on Friday, November 23, 2012 Hong Kong time.

Details of the live conference call are as follows:

Time: 7:00 PM Beijing / Hong Kong Time / 6:00 AM Eastern Standard Time, November 23, 2012

International Toll 

65-6723-9381

US Toll Free

1-866-519-4004

Hong Kong Toll Free

800-930-346

China Toll Free (for fixed line users)

800-8190-121

China Toll Free (for mobile users)

400-6208-038

Passcode

NetDragon

Replay service is available from 10:00 PM November 23 to 08:59 PM December 1, 2012 HKT. Below are the replay numbers for different regions. International Toll: 61-2-8199-0299; US Toll Free: 1-855-4525-696; Replay passcode: 68454378. A live and archived webcast of the conference call will be available on the Investor Relations section of NetDragon's website at http://ir.netdragon.com/investor/ir_events.shtml. Participants in the live webcast should visit the aforementioned website 10 minutes prior to the call, then click on the icon for "3Q 2012 Results Conference Call" and follow the registration instructions.

About NetDragon

NetDragon Websoft Inc. (HKSE: 0777) is a leading innovator and creative force in China's online gaming and mobile internet industries. Established in 1999, we are a vertically integrated developer & operator of MMORPGs and a cutting-edge R&D powerhouse. We launched our first self-made online game Monster & Me in 2002, followed by multiple titles including Eudemons Online, Conquer Online and Heroes of Might & Magic Online. We are also China's pioneer in overseas expansion, directly operating titles in overseas markets since 2003 in English, Spanish, Arabic and other languages. In the mobile Internet industry, we provide China's leading marketplace for smartphone users, offering applications and content for the most popular mobile operating systems. NetDragon offers many well-known mobile Internet products and services, including sj.91.com, www.hiapk.com, 91 Assistant, HiMarket, 91 Panda Reader and 91 Panda Home.

For investor inquiries, please contact:

NetDragon Websoft Inc.

Ms. Maggie Zhou
Investor Relations Director
Tel.:| +86 591 8754 3120
+86 591 8390 2825
Email:| nd[email protected]
Website:| www.nd.com.cn/ir

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2012



Three Months Ended


30/9/2012

30/6/2012


30/9/2011

(Unaudited)

(Unaudited

(Unaudited


/Restated)

/Unrestated)

RMB '000

RMB '000

RMB '000

Revenue

290,144


259,849


202,739

Cost of revenue

(37,358)


(26,174)


(18,043)







Gross profit

252,786


233,675


184,696

Other income and gains

17,322


11,397


5,303

Selling and marketing expenses

(37,388)


(37,078)


(34,310)

Administrative expenses

(51,564)


(54,270)


(56,373)

Development costs

(46,231)


(50,164)


(36,280)

Other expenses

(7,604)


(14,986)


(3,894)

Share of losses of associates

(363)


(285)


(65)

 

Operating Profit

 

126,958


 

88,289


 

59,077

Interest income on pledged bank deposit

2,600


-


-

Exchange gain (loss) on pledged bank deposit, secured bank loan and redeemable convertible preference shares

6,234


(1,642)


427

Net loss on derivative financial instruments

(15,474)


(19,378)


(210)

Finance costs

(6,821)


(4,319)


(316)







Profit before taxation

113,497


62,950


58,978

Taxation

(18,212)


(17,964)


(9,124)







Profit for the period

95,285


44,986


49,854

Other comprehensive income (expense):






Exchange differences arising on
translation of foreign operations

 

59


 

89


 

(734)







Total comprehensive income for the period

95,344


45,075


49,120







Profit for the period attributable to:






-Owners of the Company

95,399


45,032


49,771

-Non-controlling interests

(114)


(46)


83


95,285


44,986


49,854

Total comprehensive income attributable to:






- Owners of the Company

95,458


45,121


49,037

- Non-controlling interests

(114)


(46)


83


95,344


45,075


49,120


 RMB cents


RMB cents


RMB cents

Earnings per share






- Basic

18.95


8.75


9.48

- Diluted

18.87


8.73


9.48

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(AS AT 30 SEPTEMBER 2012)



30 September 2012


31 December 2011


(Unaudited)


(Audited)


RMB '000


RMB '000

Non-current assets




Property, plant and equipment

261,116


192,119

Prepaid lease payments

140,042


86,298

Investment property  

16,111


15,809

Deposit paid for acquisition of property, plant and equipment

-


19,050

Intangible assets

4,000


4,520

Interests in associates

12,148


12,669

Long-term deposit

3,600


-

Available-for-sale investments

5,000


4,000

Loan receivables

8,893


6,314

Deferred tax assets

54


54


450,964


340,833





Current assets




Prepaid lease payments

2,902


1,784

Loan receivables

3,894


1,091

Trade receivables

81,469


41,555

Other receivables, prepayments and deposits

46,484


41,429

Held for trading investment

5,000


-

Amount due from related companies

2,499


1,200

Pledged bank deposit

191,387


-

Bank deposits

173,358


40,000

Bank balances and cash

1,271,289


1,428,928


1,778,282


1,555,987





Current liabilities




Trade payables

31,154


5,001

Other payables and accruals           

108,955


121,353

Deferred income

32,881


25,528

Amount due to a related company

-


965

Secured bank loan

185,174


-

Other financial liability

6,183


-

Promissory notes

-


30,623

Income tax payable

42,724


42,849


407,071


226,319

Net current assets

1,371,211


1,329,668

Total assets less current liabilities

1,822,175


1,670,501





Non-current liabilities




Redeemable convertible preferred shares

174,979


131,675

Conversion option derivative liability

75,135


39,932


250,114


171,607

Net assets

1,572,061


1,498,894





Capital and reserves




Share capital

37,511


38,226

Share premium and reserves

1,508,763


1,461,126

Equity attributable to owners of the Company

1,546,274


1,499,352

Non-controlling interests

25,787


(458)


1,572,061


1,498,894

SOURCE NetDragon Websoft Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...