HONG KONG, May 26, 2011 - (ACN Newswire) - Kingsoft Corporation Limited ("Kingsoft" or the "Company"; SEHK stock code: 03888), a leading entertainment software, Internet security and application software developer, distributor and service provider in the PRC, announced its unaudited first quarter results for the three months ended March 31, 2011.
During the period under review, Kingsoft recorded decrease in both revenue and profit compared with the corresponding period last year. Revenue decreased by 6% year-over-year to RMB231.3 million and gross profit decreased by 8% year-over-year to RMB198.5 million. Profit attributable to owners of the parent decreased by 25% year-over-year to RMB66.9 million. Selling and distribution expenses decreased by 27% year-over-year to RMB19.8 million during the period under review. As at March 31, 2011, cash and cash equivalent amounted to RMB1.68 billion.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------
RMB'000 For the 3 months ended March 31 Change
(unaudited) 2011 2010 (%)
--------------------------------------------------------------------
Revenue 231,276 245,698 (6)
--------------------------------------------------------------------
-Entertainment software 163,376 161,742 1
--------------------------------------------------------------------
-Applications software 64,297 82,233 (22)
--------------------------------------------------------------------
-Others 3,603 1,723 109
--------------------------------------------------------------------
Gross profit 198,486 214,931 (8)
--------------------------------------------------------------------
OPERATIONAL HIGHLIGHTS
--------------------------------------------------------------------
March 31 Dec 31 March 31
2011 2010 2010
--------------------------------------------------------------------
Online Games
--------------------------------------------------------------------
-Daily Av. Peak Concurrent Users 684,023 771,352 915,212
--------------------------------------------------------------------
-Monthly Average Paying Users 1,258,525 1,347,806 1,457,101
--------------------------------------------------------------------
-Monthly Average Revenue per
Paying User(RMB) 43 41 36
--------------------------------------------------------------------
Online Services of Internet securities
--------------------------------------------------------------------
-Daily Average Paying Users 2,357,540 3,671,877* 8,416,136
--------------------------------------------------------------------
-Monthly Average Revenue per
Paying Users(RMB) 4.9 3.0 2.0
--------------------------------------------------------------------
BUSINESS REVIEW
Revenue from the entertainment software business and the application software business represented 71% and 28% respectively of total revenue in the first quarter.
Entertainment Software Business
Due to the decrease of revenue from Vietnam, revenue from the entertainment software business slightly decreased by 1% quarter-over-quarter. However, attributable to the steady performance of existing games in Mainland China, the revenue increased year-over-year slightly by 1% to RMB163.4 million. Daily average peak concurrent users decreased by 25% year-over-year to 0.68 million. Monthly average paying users also dropped by 13.6% year-over-year to 1.26 million. The sequential decrease in daily average peak concurrent users and monthly average paying users was mainly due to the underperformance of games in Vietnam. The monthly average revenue per paying user ("monthly ARPU") for the Company's online games increased by 5% quarter-over-quarter and 19% year-over-year to RMB 43.
In the second quarter of 2011, the company will launch tests for new games and updated versions of existing games. On May 13, 2011, limited close beta testing for the Legend of Moon, the masterpiece of Westhouse studios, was launched. Rush team is targeting to begin unlimited close beta testing on May 31, 2011. Limited close beta testing for Dream Fantasy is expected to be launched in June. We also released an expansion pack for JX Online III on May 19, 2011. In the later second quarter of 2011, updated versions of JX Online II and JX world, with enhanced contents and features, are expected to be released. We believe all these would support the growth of revenue of online games.
Application Software Business
Revenue from the application software business decreased by 21% quarter-over-quarter and 22% year-over-year to RMB 64.3 million. The decrease from the fourth quarter of 2010 primarily reflected the seasonality of enterprise sales of Kingsoft WPS Office in China. The year-over-year decrease was largely due to the decline in revenue from Kingsoft Internet Security as we launched the free edition in November, 2010. The number of daily average fee-based VIP security value-added service subscribers for online services of Kingsoft Internet Security decreased by 72% year-over-year to 2.36 million. The main reason of the decrease is that after the company announced the offerings of the free edition, the paying users from the OEM channel have become users of the free edition. Monthly ARPU for fee-based VIP security value-added services of Kingsoft Internet Security business increased by 145% year-over-year to RMB 4.9.
Kingsoft Internet security continues to expand user base and provide more value-added services, in order to transform more existing and new users to fee-based VIP security value-added service subscribers, allowing a gradual increase of fee-based subscribers. On May 6, 2011, Kingsoft Kuaipan cloud-based storage platform was listed by Zhongguancun Innovation Park Zone as one of nine cloud-based service platforms. On May 11, 2011, Kingsoft Office Android version was released.
OUTLOOK
Mr Pak Kwan Kau, Chairman and Chief Executive Officer of Kingsoft, commented, "Looking ahead, while maintaining a stable user retaintion rate of our existing games, we are confident that the new games to be introduced will boost the revenue of our entertainment software business. Meanwhile, the strong support from the Central Government towards the software industry would facilitate the growth of our application software business. Since we launched the free version of Kingsoft Internet Security, the number of free service users has increased gradually, which would further boost the number of paid service users. We have implemented our management performance incentive schemes by restructuring the business of Westhouse and issuing new shares to the key management of Kingsoft Internet Security. We believe that the initiatives would enhance the operational efficiency and support the long-term sustainable growth of the Company in the highly competitive internet industry. We will continue to be commited to the product and service innovation, minimising management costs and enhancing operational efficency through steamlining our organisational structure as well as introducing management talent to strive for better business performance, and maximise shareholders' returns through a win-win relationship."
Contact:
Kingsoft Corporation Limited
Ms. Michelle Feng Harnett
Tel: +86 10 82325515
Email: ir@kingsoft.com
Ms. Claire Lee
Tel: +86 10 82334488 - 5850
Email: limiao@kingsoft.com
Topic: Earnings
Source: Kingsoft Corporation Limited
Sectors: IT Individual, eSports, Gaming
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
