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Perfect World Co., Ltd. (PWRD)

- NASDAQ
  • Fri, Jun. 12, 5:54 PM
    • Hedge fund Farallon Capital has disclosed an 18.95M-share (8.6%) stake in Perfect World (NASDAQ:PWRD) through a 13D filing (often used by activists).
    • Farallon says it could hold talks with the Chinese online gaming firm about various strategic matters, including the $20.20/share going-private deal it agreed to with a firm controlled by chairman Michael Yi.
    | 3 Comments
  • Mon, Apr. 27, 6:45 AM
    • Perfect World (NASDAQ:PWRD) enters a go-private transaction with Perfect Peony Holding Company at a price of $20.20 per share.
    • The deal price from the entity led by Chairman Michael Chi is higher than the original privatization offer of $15.76/share made last December and a follow-up bid of $20/share in January.
    • PWRD +2.54% premarket to $18.99.
    | 3 Comments
  • Fri, Jan. 2, 12:50 PM
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  • Fri, Jan. 2, 9:14 AM
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  • Fri, Jan. 2, 8:51 AM
    • Add Perfect World's (NASDAQ:PWRD) name to the list of U.S.-traded Chinese companies to receive "non-binding" buyout offers involving a founder: Chairman Michael Chi has proposed acquiring the game developer for $20/share in cash (a 27% premium to Wednesday's close).
    • As is the norm in such situations, Perfect World's board has formed a special committee to evaluate Chi's proposal. The success rate of similar going-private offers is very mixed (I, II).
    • Perfect World has also announced mobile game publishing SVP Yunfan Zhang has been promoted to the newly-created role of COO.
    | Comment!
  • Nov. 28, 2014, 11:46 AM
    • Citing concerns about margin pressure, Pac Crest has downgraded Perfect World (NASDAQ:PWRD) to Sector Perform in the wake of the company's Q3 report.
    • Perfect World reported an 880 bps Y/Y drop in gross margin on Tuesday, and a 33% increase in opex (above revenue growth of 17%). On the CC (transcript), CFO Kelvin Lau noted Perfect World's gross margin for mobile games is typically lower than that for PC games due to revenue-sharing agreements."I think the trend is to give away 30% to 40%, less than 50% of the revenue sharing."
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  • Nov. 25, 2014, 7:05 PM
    • Perfect World (NASDAQ:PWRD) expects Q4 revenue of RMB1.023B-RMB1.072B ($166.6M-$174.6M), in-line with a $171.9M consensus.
    • Thanks to the strong performance of mobile games such as CrossGate Mobile and Forsaken World, online game revenue rose 23% Y/Y to $149.8M. However, average concurrent users for PC games fell to 623K from 778K. Licensing revenue fell 1% to $6.3M.
    • Gross margin fell to 69% from 73.1% in Q2 and 77.8% a year ago. Opex rose 33% Y/Y (exceeding revenue growth of 17%) to $113.3M.
    • Q3 results, PR
    | Comment!
  • Nov. 25, 2014, 5:04 PM
    • Perfect World (NASDAQ:PWRD): Q3 EPS of $0.41 beats by $0.01.
    • Revenue of $158.7M (+16.6% Y/Y) misses by $2.19M.
    • Press Release
    | Comment!
  • Nov. 24, 2014, 5:35 PM
  • Oct. 28, 2014, 1:56 PM
    • Perfect World (PWRD -0.2%) states placing its R&D teams within majority-owned subsidiaries will help it "attract and motivate top talent by granting them [a] direct stake in the subsidiaries."
    • The Chinese online game developer has been seeing healthy top-line growth in recent quarters - revenue rose 30% Y/Y in Q2 - but has also been dealing with a decline in its PC gaming user base. Tencent remains the 800-lb. gorilla of a very competitive Chinese gaming market.
    | Comment!
  • Sep. 3, 2014, 12:52 PM
    • Perfect World (PWRD +0.6%) is selling the 30.3M Shanda Games (GAME +0.2%) Class A shares it only recently acquired for $100M for $104.6M in cash.
    • The announcement comes in tandem with one stating Perfect World is joining multiple investment firms in pulling out of a consortium that had bid $1.9B to acquire Shanda. Shanda (current market cap of $1.67B) is brushing off the news.
    | Comment!
  • Sep. 3, 2014, 6:44 AM
    • Carlyle Group (NASDAQ:CG) and Fountainvest Partners have pulled out of a consortium backing a $1.9B bid to purchase Shanda Games (NASDAQ:GAME). Perfect World (NASDAQ:PWRD) and private equity firm Primavera Capital have also exited the consortium.
    • Shanda Interactive Entertainment and an affiliate of Primavera, which together held 76.2% of Shanda, in January had offered $6.90 per ADS to buy the company, valuing it at $1.9B.
    • Fountainvest joined the Shanda consortium in April, while Carlyle joined in May.
    | Comment!
  • Aug. 19, 2014, 2:43 PM
    • In addition to posting nearly in-line Q2 revenue (while beating on EPS), Perfect World  (NASDAQ:PWRD) has guided for Q3 revenue of RMB956M-RMB1.003B ($155.4M-$163.1M), in-line with a $159.9M consensus.
    • However, the company's PC gaming base remains under pressure: Average concurrent PC users for games under operation in mainland China totaled 661K in Q2, down from 662K in Q1 and 742K a year ago. Perfect World is counting on mobile titles such as MMORPG Forsaken World and cartoon-style RPG CrossGate Mobile to boost growth.
    • Nonetheless, online gaming revenue rose 32% Y/Y to $138.8M, and licensing revenue 55% to $7.9M. The strong performance of major PC games such as Swordsman Online and DOTA2 contributed to the growth.
    • Gross margin fell to 73.1% from 73.6% in Q1 and 76.5% a year ago. Opex rose 19% Y/Y to $88.7M, thanks in part to a 31% increase in R&D spend to $41.9M.
    • Q2 results, PR
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  • Aug. 19, 2014, 12:49 PM
    | 1 Comment
  • Aug. 18, 2014, 5:35 PM
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  • Aug. 18, 2014, 5:06 PM
    • Perfect World (NASDAQ:PWRD): Q2 EPS of $0.55 beats by $0.10.
    • Revenue of $149.6M (+29.6% Y/Y) misses by $0.96M.
    • Shares -0.04% AH.
    • Press Release
    | 1 Comment
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Company Description
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.