Changyou Meets Guidance, Q1 Profit Nears $40m
Online game developer and operator Changyou.com Ltd. (Nasdaq:CYOU) saw net income increase 2% quarter-on-quarter and 19% year-on-year to $39.7 million, or $0.75 per fully diluted ADS, in the first quarter of 2010, according to its financial report released April 26.
The company generated total revenues of $72.1 million, up 2% sequentially and 17% on an annual basis, and within previously given guidance. Revenue from game operations was up 18% year-on-year to $70.2 million, mostly due to the ongoing popularity of Changyou’s flagship games, the company said.
Changyou reported that its registered accounts in all games stood at 87.4 million as of March 31, representing an increase of 8% quarter-on-quarter and 38% year-on-year, with active paying accounts in the quarter at 2.4 million, flat against the previous quarter but up 5% compared with the year ago period. Average revenue per active paying account grew 2% quarter-on-quarter and 12% yearly to RMB 201.
The company’s overseas licensing revenues decreased 10% sequentially and 17% annually to $1.9 million in the quarter, which Changyou attributed to greater competition in mature online game markets abroad.
In the second quarter of 2010, Changyou estimated it will generate between $74 million and $77 million in total revenue, with non-GAAP net income of between $41.5 million and $43 million.
Initially started as a Sohu.com (Nasdaq:SOHU) business unit in 2003, Changyou became an independent company in December 2007 and completed an initial public offering on April 7, 2009.
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