Perfect World Co
A leading online game developer and operator in China. The company primarily develops 3D online games based on their proprietary Angelica 3D game engine and game development platform.
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Perfect World online games releases strong results
Online games company Perfect World (NASDAQ:PWRD) today revealed its positive results for the last quarter of 2008 and predicted continued strong growth ahead.
In the fourth quarter of 2008, total revenues were RMB417.8m (US$61.2m), an increase of 9.4 percent from the third quarter and 61.7 percent year-on-year. Gross profit was RMB368.5m (US$54m), up 10.1 percent from the third quarter and 67.7 percent from the fourth quarter of 2007. Company operating profit was RMB149.5m (US$1.9m), down 25.2 percent from the third quarter 2008, but up 8.8% year-on-year. Excluding share-based compensation charges and a non-recurring charge related to the company’s acquisition of InterServ in October 2008, operating profit was RMB244.7m (US$35.9m), an increase of 14.7 percent from the third quarter and up 73 percent year-on-year.
Chairman and CEO Michael Chi stated: “Despite the global economic slowdown, 2008 was a great year for us and I am very proud of our continued growth”. In 2008 the company launched three new games, including its first 3D online game, “Hot Dance Party”. Perfect World also plans to release a new version of its game Chi Bi on March 12, adding new virtual items, costumes, tasks, professions and another battlefield. The company launched a second expansion pack for Chi Bi on October 23, and its last new version on September 4, 2008.
Perfect World now intends to continue to develop new games in the short and medium term, while committing more resource to long-term projects. Perfect World has broadened geographic coverage in Asia and Europe through licensing overseas, and established a wholly-owned subsidiary in the US.
According to the latest statistics published by China's General Administration of Press and Publication (GAPP), China's Internet game publication industry achieved actual sales of RMB18.38bn in 2008, a year-on-year increase of 76.6 percent, and it brought RMB47.84bn to China's telecommunications industry.
China's domestic online games market developed rapidly in 2008, with 15 Chinese companies launching 33 online games in markets worldwide. Of these, five were developed by Perfect World. Shanghai-based Shanda entered South Korea through acquisitions and investments in Korean gaming firms, while Tencent bought MIH India Global Internet for US$7.5m. NetDragon meanwhile signed a joint agreement with Walt Disney to explore the worldwide market, and became the first Chinese company to directly operate an online game in the US.
The GAPP stated that it will launch a range of measures to assist domestic companies export services, technologies and copyrights to complement their product exports, in order to help these companies compete internationally and develop global market share and influence.
