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Finance

ChangYou reports 2011 net income of $245.5 million

Tue 07 Feb 2012 9:25am GMT / 4:25am EST / 1:25am PST
Online

MMO publisher sees $123 million revenue from online gaming in 2011

ChangYou

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

changyou.com/en/

MMO publisher ChangYou has reported total revenues of $484.6 million for 2011, and a net income of $245.5 million.

Revenues had increased by 37 per cent compared to the previous year, while net income had increased by 26 per cent. Gross profit increased by 30 per cent to $417.1 million.

For the fourth quarter alone, which ended December 31 2011, total revenue was $137.7 million, a 39 per cent year on year increase, while net income increased 20 per cent year on year to $64.3 million. Gross profit for the quarter also increased by 30 per cent year on year to $116.7 million.

$123.3 million of that revenue came from the company's online gaming operations, and $12.4 million from online advertising.

 "A strong fourth quarter helped to make 2011 a record-breaking year, in terms of total revenues and full year non-GAAP net income" said CFO Alex Ho.

" We were able to exceed our expectations for the quarter. We owe this to the continuing strong performance of our MMORPG business, which we expect will give us the cash flows and financial leverage to execute our strategic plans. With a rich cash reserve and a debt-free balance sheet, we are well-positioned to invest in emerging opportunities in other fast-growing segments of the industry and to enhance shareholder value over the long term."

It was a big twelve months for the company, which acquired Chinese portal 17173 on December 15 from Sohu for $162.5 million.

"We jump started our platform-based strategy with the acquisition of 17173.com, one of China's leading portals for news and information about online games," said CEO Dewen Chen.

"We plan to invest in 17173 to make it even more user friendly by adding services and access to a variety of games designed for different platforms and user communities. We regard 17173 as both a brand builder and a building block to developing our platform business, offering a one-stop-shop for gamers of all types, which will help to deepen and expand the Changyou community online."

For Q1 2012 the company forecasts total revenue of up to $134 million, online revenue of $121 million and net income of up to $60 million.

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