Changyou sees FY14 Q2 game revenues down 6% to $154 million

DDTank and Wartune maturing

Changyou sees FY14 Q2 game revenues down 6% to $154 million

Chinese online game publisher Changyou (NASDAQ:CYOU) has announced its unaudited FY14 Q2 financials, for the three months ending 30 June 2014.

Revenues were $178 million, down 2 percent quarter-on-quarter, but up 3 percent year-on-year.

Games made up 87 percent of revenues, down 6 percent quarter-on-quarter and down 9 percent year-on-year to $153.9 million

Net income was $1.9 million, down 97 percent year-on-year, but better than the $19.5 million lost last quarter.

Changyou ended the quarter with cash and equivalents worth $393 million.

Going mobile

During the quarter, Changyou purchased 51 percent of Dolphin Browser developer MoboTap for $91 million. It will also provide the company with $30 million in additional funding.

"Ultimately, our goal is to combine our online games business with a central user platform for distributing and promoting games," said CEO Tao Wang.

"We believe the two together will form a winning business model that can make Changyou into an even more valuable and successful company than it is today."

As well as releasing games, Changyou also owns the gaming website and generates around 10 percent of its revenue from advertising.

Quarter-on-quarter, the company saw a 14 percent decline in the number of monthly active accounts to 24 million, mainly due to the maturing of web games Wartune and DDTank.

[source: Changyou]

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