KongZhong announces special dividend worth $40 million

Buttering up the shareholders

KongZhong announces special dividend worth $40 million

Game companies are not know for rewarding shareholders with dividends.

But following the example of King, NASDAQ-floated Chinese PC and mobile publisher KongZhong (NASDAQ: KZ), has also decided to hand out some cash.

It's declared a "special one-time cash dividend of US$0.022 per ordinary share or US$0.88 per American Depositary Share".

This will cost the company $40.1 million, although with $230.6 million in cash and cash equivalents, and having generated $29 million in net cash provided for the six months ended 30 June 2014, the move shouldn't impact longterm stability.

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"Today's announcement of a US$0.88 per ADS special dividend, is our latest effort in returning capital to our shareholders. Over the past six years, we have undertaken share repurchases with a cumulative value of US$39.3 million," commented CEO Leilei Wang.

"Our strong balance sheet and positive growth opportunities in our Internet and mobile game businesses have allowed us to provide shareholders with this dividend, while preserving financial and operational flexibility to grow our business in the rapidly growing Chinese online game markets.

"We have strong confidence in our operation cash flow and may consider making further efforts to return capital to our shareholders through dividend distributions.

"However, the distribution of any dividends will be at the full discretion of the Board of Directors and will be dependent upon our financial position, results of operations, available cash, capital requirements and other factors."

Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.