KongZhong revenues rise on Guild Wars 2, World of Warplanes
Chinese publisher stays profitable thanks to new game launches
The launch of Guild Wars 2 and World of Warplanes helped Chinese publisher KongZhong exceed expectations and stay in the black.
In the three-month period ended June 30, 2014, KongZhong earned $57.9 million in revenue, a 33 per cent increase over the prior year. Net income was just $70,000, though the company noted that this is still better than expected. On a non-GAAP basis, KongZhong made $1.45m in profit, again ahead of guidance.
"We successfully released Guild Wars 2 and World of Warplanes to Chinese players [in Q2] and have established a strong, long-term operating strategy to become a leader in the Chinese PC game market through the War Saga Brand, Guild Wars 2 and our other differentiated PC games under development," said CEO Leilei Wang in a statement.
The impact of Guild Wars 2 and and World of Warplanes was immediately apparent in the company's internet game revenues, which rose by 36 per cent year-on-year to hit $32 million. It also received a boost in MAUs, from 1.7 million a year ago to 2.6 million.