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Linktone (ticker: LTON), a Chinese wireless value-added service company reported Q1 2005 earnings results this week. Here are key quotes attributed to CEO Raymond Yang and outgoing CFO Mark Begert from the company's earnings results conference call:


On the acquisition of Brilliant - a developer and operator of online casual games

....an important first step toward creating new growth opportunities in diversifying our revenue streams to encompass both wireless and online gaming opportunities in China....the transition will complement and leverage our core business of wireless value-added services and enable us to build a robust interactive entertainment community....

....the Brilliant community....consists of more than 15 million registered users. During the recent peak period, the service has supported up to 50,000 concurrent users. This community of casual gamers closely mirrors Linktone target user demographics of 16 to 30-year-olds with disposable income to spend on wireless and online entertainment.

....the Brilliant acquisition is accretive, we will also be investing on some new games to put on the platform and investing in product development and selling and marketing. So, overall for 2005, we see brilliant as pretty much a net net breakeven business, if only slightly accretive. However, in 2006, we believe that conservatively it could add up to 10% incremental top-line and bottom-line contribution to Linktone's core business of wireless. And that is our initial projection at this point.

On any word from China Mobile (ticker: CHL) re: resumption of WAP services in 2H 2005

....So far, there's no news. We're on a schedule to resume that....we're doing very well internal preparation for this relaunching.

(Quotes are from the CCBN StreetEvents transcript.)

Source: Linktone (LTON) on its Brilliant acquisition and the timing of WAP services (1Q05 conf call)