Fri, Jan. 2, 12:50 PM
Fri, Jan. 2, 9:14 AM
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."
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
Aug. 19, 2014, 12:49 PM
Aug. 18, 2014, 5:35 PM
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.
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
Mar. 10, 2014, 5:49 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.
Nov. 25, 2013, 5:42 PM
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