Changyou sees FY14 Q3 VAS revenue up 52% to $7.4 million

Core PC online titles see slight decline

Changyou sees FY14 Q3 VAS revenue up 52% to $7.4 million

Chinese online game publisher Changyou (NASDAQ:CYOU) has announced its unaudited FY14 Q3 financials, for the three months ending 30 September 2014.

Revenues were $180.8 million, up 2 percent quarter-on-quarter, but down 1 percent year-on-year.

Online game revenues accounted for 83 percent of revenue.

Net income was $3.3 million, up 91 percent quarter-on-quarter but down 95 percent year-on-year.

Changyou ended the quarter with cash, equivalents and short-term investments worth $387 million.

Steady as she goes

In terms of its PC online games, Changyou is dealing with the maturing of its key titles Wartune and DDTank, although the quarter saw an increase in active players of 21 percent quarter-on-quarter to 29 million thanks to TLBB and the launch of new games, including Fantasy Frontier Online.

Yet revenues from Wartune, DDTank and Tian Long Ba Bu (TLBB) all declined.

Looking more broadly across the company's entire gaming and web properties - including and the newly-acquired MoboTap (which operates the Dolphin Browser), total monthly active accounts were 275 million, up 9 percent quarter-on-quarter.

Mobile on the rise

Changyou doesn't break out mobile games specifically, but noted that revenue from internet value-added services (including web and mobile games) was up 52 percent quarter-on-quarter to $7.4 million.

In this context, it's just launched in-house mobile 3D martial arts MMORPG Tian Long Ba Bu 3D (TLBB 3D) and expects to launch Unity-made co-developed mobile 3D RPG Qin Shi Ming Yue 2 later in November.

New co-CEO Dewen Chen commented, "We are pleased with the strong user traction on two of our newly-launched mobile games, TLBB 3D and Qin Shi Ming Yue 2.

"We believe this demonstrates our capabilities in mobile game publishing as well as the creative talents of our mobile R&D team."

[source: Changyou]

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