Chinese mobile game developer and publisher CMGE (NASDAQ:CMGE) has announced its unaudited FY14 Q2 financial results for the three months ending 30 June 2014.
Revenues were $44.3 million (RMB 275 million), up 28 percent quarter-on-quarter and 281 percent year-on-year.
Net income was $8.8 million (RMB 54.9 million), up 58 percent quarter-on-quarter.
CMGE made a net loss 12 months ago.
During the period, CMGE had 5 million paying accounts, compared to 3.6 million in Q1. ARPU was RMB 40.1.
The company ended the quarter with cash and equivalents worth $79 million.
Demonstrating the competitive nature of the Chinese mobile games market, CMGE currently has 21 games in development. It expects to launch one internally-developed title per month from September 2014.
The first will be MMORPG The New Legend, which has been co-developed with 7cool, and is the first mobile game based on the Legend online PC series owned by Shanda Games.
In addition to self-developed games, during the quarter CMGE published four new titles - Super Hero, Barcode Footballer, Bu Bu Jing Qing and Da Nao Tian Gong HD.
It said Super Hero was particularly successful, boasting 1-day retention of 55 percent and 7-day retention of 30 percent.
It is already generating over $6.5 million a month, while Da Nao Tian Gong HD is making around $1.3 million per month.
In terms of future products, CMGE has licensed many IPs, particular from Japanese companies.
It is making games based on the One Piece and Ikkyu San anime series, a game co-developed with GREE based on Naruto, one based on Tecmo Koei's Uncharted Water 5 game, and has licensed King of Fighters' 97, Samurai Spirits II and Metal Slug 2 from SNK Playmore for the Chinese market.
To improve its distribution, the company will be working with wifi companies to enable players to download games for free, while it says its game center app is already installed on 35 million handsets.
It hopes this number will reach 80 million by the end of 2014.
And finally, CMGE has formed a strategy partnership with Beijing Super Flash Software to open up its Mobimirage game engine to all developers. It previously had invested in Yunva Technology and is now using its live interactive video and voice tools in a series of poker games.