SkyMobi's 2014 revenues down 19% to $78 million, but Q4 rises as smartphone platform accelerates

A tale of four quarters

SkyMobi's 2014 revenues down 19% to $78 million, but Q4 rises as smartphone platform accelerates

Chinese mobile app store SkyMobi (NASDAQ:MOBI) has announced its unaudited 2014 results, for the 12 months ending 31 March 2014.

Total revenues were $78.1 million, down 19 percent year-on-year.

Revenues from smartphones were $33.8 million, or 43 percent of total revenues.

Net profit was $700,000, down 72 percent.

Wagging the dog

Although Sky-mobi's annual figures were disappointing, it pointed to Q4 financials that exceeded its guidance.

Q4 revenue was up 12 percent to $20.7 million, and smartphone activity generated 68 percent of this.

Net profit during the period was $700,000, demonstrating that the company is overcoming its transition from a feature phone business to a smartphone business.

"After four quarters of declining revenue, we have turned the corner and are now showing top line growth again," said CEO Michael Tao Song.

"Driven by continued smartphone penetration and growth for light social games as well as the Maopao smartphone platform, our smartphone revenues reached a historical high.

"Moreover, we are very excited to report improved gross margin, which expanded to 25 percent, demonstrating our continued goals of profitable growth and bottom line improvement."

Maopao powers up

Sky-mobi revealed it was adding an average of over 414,000 users per day, with a total of 147 million now on its Maopao smartphone platform. This includes 25 million monthly active users.

It generated 64 percent of Q4 revenue from China's powerful carriers, while 22.5 percent of revenue came from Maopao.

Key game titles were Fantasy of Three Kingdoms  and Fairy Magic World.

Sky-mobi ended the quarter with cash and equivalents of $96 million.

[source: Sky-mobi]

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