Beijing, China based Changyou announced today their fiscal results for Q2 2009. Topping out at a company record $66.6 million, up 8 percent quarter-over-quarter, and a massive 39 percent increase year over year. Looking at the companies’ aggregate active paying accounts, or APA, Changyou’s two MMORPG’s, Tian Long Ba Bu and Blade Onlinegrew by 5 percent quarter-over quarter and an impressive 32 percent increase year-over-year. Changyou now counts 2.39 million active paying accounts. The ARPU, or average revenue per user has also risen by 4 percent quarter-over-quarter, and a 6 percent increase year-over-year to 186 RMB or approximately $27. Changyou believes that this is within the range of affordability of the majority of Chinese online gamers.
“Our relentless focus on building our business for the long-term by actively seeking out and implementing feedback from game players to improve the user experience continues to pay off,” said Mr. Tao Wang, Changyou’s chief executive officer. “This, combined with the ongoing strength of the online gaming industry in China and its status as a defensive play in difficult economic times, has helped us deliver another quarter of record results. Our user-centric strategy, strong R&D capabilities and regular release of expansion packs has allowed us to maintain the upward momentum of our games, and we expect this to continue going forward. With our growing user base and expanding online and offline marketing capabilities, I am confident in our ability to deliver sustainable growth.”
Mr. Alex Ho, Changyou’s chief financial officer, added, “During the second quarter, our key operating and financial metrics continued on a healthy and upward trend, demonstrating our ability to execute our well-defined strategies. Boosted by the continued popularity of our games, particularly Tian Long Ba Bu, total revenues and net income once again exceeded guidance. With our debt-free balance sheet, rich cash flows and high profitability, we are poised to capitalize on opportunities as they arise. ”
However, while there might be an increase in a number of Changyou’s stats, the company is reporting a decrease in the PCU (Peak Concurrent Users) number, which topped out around the 950,000 mark. This is a 2 percent decrease from Q1, but, a 23 percent increase year-over-year. The most pressing issue for Changyou right now may be their decreasing overseas presence. Licencing revenues for Q2 dropped 27 percent quarter-over-quarter, and 42 percent year-over-year to a mere $1.7 million. Changyou accredits the rise and maturity over greater competition in these markets.
Based on current numbers and quarterly results, Changyou expects to post revenues between $67 – $69 million in Q3 2009.
Tags: Changyou, Mr. Alex Ho, tao wang, tian long ba bu
