(all percentage changes and comparisons are year on year, unless stated otherwise)
- Net revenues of $31.6 million, up 55%.
- Revenue mix: online game services rose 22.6% sequentially to $23.8 million; advertising revenue fell by 12.4%
to $4.9 million; wireless value-added and fee-based premium service
revenue fell 23.5% sequentially to $2.9 million.
- Key drivers for online gaming: Westward Journey Online
Version 2.0 and Fantasy Westward Journey Online generated sequential revenue growth of 15.2% and
33.2% due to the launch of
new expansion packs and the seasonal effect of national holidays. Peak concurrent users for
Westward Journey Online Version 2.0 and Fantasy Westward Journey reached
approximately 349,000 and 356,000, respectively.
- Key drivers for decline in advertising revenue: seasonal, and "the fact that certain of the Company's major advertisers spent a
major portion of their annual marketing budget in Q3
during the summer holiday and the Olympics period and, accordingly, their
advertising spending decreased in Q4".
- Key drivers for the decline in wireless revenue: competition, "general decrease in
popularity of pure SMS products", and mobile operators' implementation of new billing platforms.
- Net profit grew 19.3% sequentially to
$15.7 million, or $0.45 in earnings
- Concurrent users for Westward Journey Online Version 2.0 and
Fantasy Westward Journey Online were 159,000 and 146,000,
- The number of accumulated registered Web site accounts rose by 78% (and 13% sequentially).
Q1 2005 Guidance:
- 17% sequential revenue growth (approximately $36.9 million).
- Net income of $15.7 - 16.5 million.
NTES chart below.