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Finance

ChangYou profits up 29% year on year to $54.2m

Tue 02 Aug 2011 9:41am GMT / 5:41am EDT / 2:41am PDT
FinancePublishing

Fifth consecutive quarter of growth for Chinese MMO operator

ChangYou

Changyou.com (NASDAQ: CYOU) is a leading developer and operator of online games in China. We began operations...

changyou.com/en/

Chinese MMO operator ChangYou has reported a fifth consecutive quarter of growth, recording profits of $54.2 million (33.2m), up 28.8 per cent from the $42.1 million (25.8m) it reported for the same quarter last year.

Revenues rose 35.1 per cent to $105 million (64.4m) for the quarter.

ChangYou operates two major Chinese MMOs: four-year old Tian Long Ba Bu and Duke of Mount Deer, released on July 22 this year. Recently, ChanYou almost doubled the number of player servers for Duke of Mount Deer, from 64 to 110, to meet player demand.

There has been no lessening of demand for Tian Long Ba Bu following the newer game's release.

"We posted record performance in the second quarter as total revenues exceeded $100 million," said CEO Tao Wang. "The continued success of our blockbuster Tian Long Ba Bu has been supported by and carefully nurtured with the release of new content in mid-March and in early July that incorporates user feedback.

"A major expansion pack, TLBB3, is scheduled to be released in the latter half of this year as we aim to further extend its popularity and life cycle. On July 22nd, after four years of meticulous planning and development, we launched Duke of Mount Deer, or DMD, our second inhouse-developed game. The extensive work that we put into the game has led to its good reception, and its user base has continued to increase after its open beta."

This May, ChangYou also acquired a 68 per cent controlling stake in 7Road, a Chinese web game specialist. That acquisition has also prompted growth for the parent company.

"The addition of 7Road immediately diversifies our business and establishes us as one of the leading players in the rapidly expanding Web-based game market in China," said president and COO Dewen Chen.

"7Road's hit game, DDTank, continues to be one of China's most popular web-based games and attracts user interest. We share a philosophy with 7Road's management team that it is vital to create games that users want to play, and it is this mutual belief that gives us great confidence in our long-term outlook together."

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