Perfect World (PWRD) Beats Solidly On Earnings, Offers Soft Guidance
Chinese video game maker Perfect World (
PWRD) reported a typical quarter; beating estimates in the current quarter and offering lowball estimates for the following quarter. Stock is volatile in premarket, but as long as $42 is held we should be ok.
Full report
here. A quick glance at some of the metrics; analysts had been looking for $82M in revenue and 75 cents on the quarter. Revenue came in up 13.2% sequentially, and 54.5% year over year; expenses up a tad faster so gross profit "only" gained 8.9% sequentially and 48.0% year over year - gross margin dropped about 3%. Some of this is due to a non video game blip that I'll come back to at the end of this entry. Net income up 9.1% quarter over quarter, and 45.4% year over year... impressive numbers but quickly forgotten as stock market lemmings already move onto the next thing to worry about.
- Total revenues were RMB590.0 million (USD86.4 million) in 3Q09, an increase of 13.2%, or RMB68.7 million, from RMB521.3 million in 2Q09 and an increase of 54.5%, or RMB208.2 million, from RMB381.8 million in 3Q08.
- The sequential growth in online game operation revenues was primarily attributable to the successful release of expansion packs for some of the Company's existing games and a series of successful marketing activities.
- Gross profit was RMB495.0 million (USD72.5 million) in 3Q09, an increase of 8.9%, or RMB40.4 million, from RMB454.5 million in 2Q09, and an increase of 48.0%, or RMB160.4 million, from RMB334.5 million in 3Q08. Gross margin was 83.9% in 3Q09, as compared to 87.2% in 2Q09 and 87.6% in 3Q08.
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