- Perfect World (PWRD) expects Q3 revenue of RMB779M-RMB815M ($127.3M-$133.4M), well above a $116.8M consensus. The company cites expected revenue from newly-launched titles Swordsman Online and Saint Seiya Online.
- It looks as if the good news was priced in. Like many other Chinese Internet stocks, Perfect World has been on a tear in recent months.
- The Q2 beat is attributed to successful launches for Saint Seiya Online (launched in China) and Neverwinter (launched in North America/Europe, Chinese launch upcoming). The company launched numerous Web/mobile titles during the quarter, and is looking to further diversify its pipeline.
- Sales/marketing spend +102% Q/Q to $31.8M thanks to ad/promotional efforts for new games. R&D +5% Y/Y to $32.5M.
- Gross margin was 75.5%, -100 bps Q/Q and -580 bps Y/Y.
- Perfect World's global network (covers both subsidiaries and partners) accounted for over 1/4 of its revenue.
- CC at 9PM ET. Q2 results, PR
Perfect World -6.6% AH following Q2 beat, strong guidance; spending ramps
Aug 19 2013, 17:43 ET