Publishing play paying off: CMGE sees FY13 Q3 sales up 125% to $16 million

Joyful poker series making $1.5 million a month

Publishing play paying off: CMGE sees FY13 Q3 sales up 125% to $16 million

China Mobile Games and Entertainment Group Limited (NASDAQ: CMGE) has announced its unaudited financial results for FY13 Q3, the three months ending 30 September 2013.

Revenues were $16 million, (RMB 98 million), up 125 percent year-on-year.

Of this, mobile game sales were $14.6 million (RMB 89.2 million).

Smartphone game sales made up 90 percent of sales, up 114 percent year-on-year.

Back in Q3 2012, smartphone sales made up just 26 percent of overall revenues.

The company reported an operating loss of $300,000 (RMB 2 million), compared to a loss of RMB 19.5 million, 12 months ago.

This was due to increase in the cost of sales arising from the expansion of its third-party publishing operations, and increased R&D expenses.

Building up business

The company had 2.8 million paying users for its social mobile games during the quarter, with average revenue per paying player during the quarter of just over $4 (RMB 24.9), up from RMB 20.8.

In terms of its single-player games, CMGE had 2.6 million paying users, with average revenue per paying user of RMB 4.3 ($0.70)

"We started 2013 with three key priorities: First, we wanted to establish a leading position in third-party mobile game publishing. Second, we wanted to significantly grow our portfolio of popular self- developed social games and third, we wanted to bring the quarterly result to profitability within this year," said CEO Ken Jian Xiao.

"I am pleased to report that by the end of the first nine months of 2013, we have met all of our objectives."

Rise to the top

Jian Xiao also claimed that during the quarter, CMGE was the #1 mobile game publisher in China - as reported by market research company Analysys.

He said the company hoped to have more than 60 million installs of its published games and its game center app by the end of 2013.

CMGE has published more than 50 games, of which 23 are exclusive deals, including titles such as Monster Island and Wu Xia Q Zhuan.

Publishing represented 32 percent of CMGE's sales during Q3.

In terms of its inhouse games, Joyful Zha Jin Hua, the first social poker game in CMGE's Joyful poker series, reached over RMB 10 million (around $1.5 million) in monthly revenues every month during the quarter.

CMGE ended the quarter with cash and equivalents worth $37 million.

[source: CMGE]

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