Aug. 18, 2014, 2:23 PM
- Morgan Stanley has upgraded Perfect World (PWRD +1.6%) to Overweight ahead of this afternoon's Q2 report. Shares have ticked higher in response.
- The Chinese game developer is trading near a 5-month high. It's still 13% below a 52-week high of $26.25.
Aug. 17, 2014, 5:35 PM
Jun. 20, 2014, 12:58 PM
- Perfect World (PWRD +1.7%) has signed a framework agreement with the city of Chongqing to invest RMB1B ($161M) in developing mobile products, with a focus on mobile games.
- PWRD will use its Chongqing ops to build a "gaming media platform," a "mobile game global publishing and operation platform," and a mobile gaming R&D base. Major mobile game publisher Qihoo will help out with the publishing platform.
- Perfect World reported both strong mobile gaming user growth and an 18% Q/Q drop in average concurrent PC users for Q1. The latter was blamed on seasonality and anti-cheating efforts.
- The company noted the performance of mobile RPG Return of the Condor Heroes remained strong, and that it has several games in its mobile pipeline.
May 19, 2014, 5:58 PM
- Perfect World (PWRD) expects Q2 revenue of RMB891M-RMB936M ($142.7M-$150M) vs. a $148.2M consensus.
- Revenue rose 42.5% Y/Y in Q1, but also fell 2.5% Q/Q, thanks in part to lower promotional spend for MMORPG titles. Average concurrent PC users fell 18% Q/Q to 662K, something attributed to anti-cheating efforts and seasonality. Mobile gaming growth partly offset the decline.
- Gross margin fell to 73.6% from 75.1% in Q4 and 77.8% a year ago. Opex rose 41% Y/Y to $77M.
- PWRD +0.3% AH. Q1 results, PR.
May 19, 2014, 5:06 PM
- Perfect World (PWRD): Q1 EPS of $0.70 beats by $0.14.
- Revenue of $143.3M (+42.5% Y/Y) beats by $2.6M.
- Shares +1.15% AH.
May 18, 2014, 5:35 PM
Apr. 21, 2014, 12:06 PM
- Perfect World (PWRD +1.8%) has agreed to buy $100M worth of shares in Shanda Games (GAME +1.4%) parent Shanda Interactive.
- As part of the deal, Perfect World will "become a party to the consortium agreement" between Shanda Interactive and investment firm Primavera Capital regarding Primavera's $6.90/share going-private offer for Shanda Games.
- In addition to owning a controlling stake in Shanda Games, Shanda Interactive is a major online book publisher.
Mar. 10, 2014, 5:49 PM
Mar. 10, 2014, 5:07 PM
- Perfect World Co., Ltd. (PWRD): Q4 EPS of $0.54 beats by $0.11.
- Revenue of $151M (+38.4% Y/Y) beats by $8.89M.
Mar. 10, 2014, 12:10 AM
Mar. 9, 2014, 5:35 PM
Feb. 28, 2014, 2:16 PM
- Over the last 48 hours, Baidu, Dangdang, Youku, and 58.com have all posted Q4 beats and provided strong Q1 guidance. The numbers are giving a lift to a slew of Chinese Internet stocks.
- Notable gainers: SOHU +6.5%. PWRD +13.2%. VIPS +4.3%. YY +2.2%. RENN +3.8%. GOMO +5.5%.
- In Sohu's case, the rumor mill might also be helping out. A source tells Marbridge Consulting Sohu CEO Charles Zhang and Tencent (TCEHY +1.2%) CEO Pony Ma have talked about merging their companies' online video units. Both Sohu and Tencent trail market leaders Youku and Baidu in China's burgeoning online video market.
- Dangdang (DANG +8.6%) is adding to yesterday's big post-earnings gains after Oppenheimer hiked its PT to $15. The firm likes Dangdang's improved efficiency and partnerships with e-commerce rivals (inc. Alibaba's Tmall), and the fact mobile accounted for 13% of Q4 orders.
Jan. 23, 2014, 9:59 AM
- SEC administrative law judge Cameron Elliot has barred the Chinese units of the Big-4 accounting firms - KPMG, Deloitte, PwC, and Ernst & Young - from auditing U.S.-listed companies for six months.
- Elliot declares the accounting firms "willfully" chose to withhold audit work papers from U.S. regulators for Chinese companies being investigated for accounted fraud. The firms have been worried about violating Chinese privacy laws by turning over the papers, and have argued the dispute needs to be resolved politically.
- Though the firms plan to appeal and say they can continue serving Chinese clients for now, shares of Chinese Web and solar names aren't handling the news well. Soft Chinese PMI data could be worsening matters.
- Chinese Web decliners: BIDU -2.5%. SOHU -3.2%. DANG -8.9%. SFUN -8.5%. PWRD -8.5%. QUNR -7.1%. LITB -6.5%. YY -6.1%. WUBA -6%. BITA -5.4%. EJ -5.9%. SINA -4.6%. LITB -6.5%. CTRP -5.4%. NQ -7.1%.
- Chinese solar decliners: TSL -8.7%. JASO -6.9%. SOL -6.3%. JKS -5.6%. CSIQ -5.4%. DQ -4.6%. YGE -5.6%. CSUN -6.2%. HSOL -7.8%.
- Qihoo (QIHU -4.6%) has joined the selloff in spite of a BrightWire report stating Alibaba (ABABA) has reached a deal to acquire a stake in the company. Marbridge Consulting reported two weeks ago Qihoo and Alibaba were in talks about a possible investment.
Jan. 8, 2014, 11:54 AM
- Alibaba (ABABA), whose ambitions have been steadily expanding beyond e-commerce, plans to launch a mobile gaming platform for 3rd-party titles.
- The service will be aimed squarely at Chinese online/mobile gaming leader Tencent (TCEHY), and will give developers a hefty 70% cut. Alibaba also plans to integrate the service with its Laiwang messaging app (competes with Tencent's dominant WeChat) and the mobile app for its Taobao e-commerce platform.
- In addition to Tencent, Alibaba will be taking on a slew of other mobile game distributors, including NQ Mobile's (NQ +1.7%) FL Mobile unit.
- Chinese game developer Perfect World (PWRD +10.1%) has skyrocketed in morning trading. Peers Changyou (CYOU +4.1%) and NetEase (NTES +3.5%) are also up sharply.
- Also: Alibaba's Alipay online payments unit has struck a deal with Sina (SINA +1.5%) to allow Weibo users to make online and offline payments via Alipay. Sina investors have been expecting the company's partnership with Alibaba (bought an 18% stake last year) to yield service launches that would improve Weibo monetization.
Dec. 27, 2013, 1:21 PM
- Making good on a November Marbridge Consulting report, Baidu (BIDU +4.1%) has reached a deal to acquire Perfect World's (PWRD +1.8%) Huanxiang Zongheng online literature business (provides Chinese e-books, digital comics, and animations) for RMB191.5M ($31.5M). (PR)
- Marbridge previously noted Zongheng offers 100K+ e-book titles, receives 60M+ daily page views, and gets over 1/3 of its site traffic via mobile.
- The purchase is the latest in a string of 2013 acquisitions by Baidu, as the Chinese search giant attempts to create a far-reaching empire of Web/mobile content and services. Prior acquisitions: PPS, 91 Wireless, Nuomi.
- Perfect World says the deal will allow it to focus on its core online gaming business. The company has been investing heavily in both developing new games and promoting existing ones.
Nov. 25, 2013, 6:39 PM
- Perfect World (PWRD) expects Q4 revenue of RMB850M-892M ($139.6M-$146.5M), above a consensus of $137.3M.
- The company attributes its Q3 beat to the strong performance of new titles, including Swordsman Online and Saint Seiya Online. Average concurrent users for Chinese games rose to 778K from 742K in Q2 and 601K in the year-ago period.
- Going forward, Perfect World is counting on the launch of DOTA2, as well as a Chinese version of U.S./European title Neverwinter, to maintain its momentum.
- Sales/marketing spend rose 10% Q/Q and 21% Y/Y to $34.9M. The Y/Y rate is well below the 102% clip Perfect World reported for Q2, much to the concern of investors. R&D spend rose 19% Q/Q and 20% Y/Y to $38.8M. Gross margin was76.7%, up from 75.5% in Q2 but down from 81.5% a year ago.
- PWRD +8.4% AH. Q3 results, PR.
Perfect World Co Ltd is an online game developer and operator in China. The Company develops online games based on proprietary game engines and game development platforms.
Industry: Multimedia & Graphics Software
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