Despite delays, KongZhong sees FY14 Q3 mobile game sales up 8% to $11 million

Gross profits up 19%

Despite delays, KongZhong sees FY14 Q3 mobile game sales up 8% to $11 million

Chinese mobile and online gaming company KongZhong (NASDAQ:KZ) has announced its unaudited results for FY14 Q4, the three months ending 30 September 2014.

Total revenues were $60.1 million, up 3.9 percent quarter-on-quarter and 36 percent year-on-year.

Mobile games accounted for $11.4 million (or 19 percent), up 8 percent quarter-on-quarter and 142 percent year-on-year.

Net income was $3.5 million.

Gross profit from mobile games was $5.4 million, up 19 percent quarter-on-quarter thanks to KongZhong's success on iOS.

Could do better

"Due to delays in the release of our new smartphone mobile games, we under performed our previously given guidance," said CEO Leilei Wang.

"Nonetheless, the Company still returned to solid profitability in 3Q14 compared to 2Q14.

This was driven by stable performance in our internet game business as we continued to release new updates for World of Tanks and Guild Wars 2 stabilized around a core loyal player base.

"In mobile games, at the end of 3Q14 we released our self-developed mobile game, Rush Three Kingdoms, which has become a consistent performing game in the China market and in November 2014, we released My Cutest Princess, a licensed game from Japan.

"We expect to release 1 to 2 high quality mobile games to the market per quarter for the foreseeable future."

[source: KongZhong]

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