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Post-91 Wireless deal, NetDragon sees FY13 Q3 sales rise 66% to $79 million

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Post-91 Wireless deal, NetDragon sees FY13 Q3 sales rise 66% to $79 million

Chinese online and mobile games publisher NetDragon Websoft (HKG: 0777), has announced its FY13 Q3 financials for the three months ending 30 September 2013.

Total revenue was $79 million (RMB 481 million), up 66 percent year-on-year.

Profit was $23.5 million (RMB 142.6 million), up 50 percent.

Looking ahead

During the previous quarter, NetDragon closed the deal to sell its remaining 47.5 percentage stake in the 91 Wireless business to Baidu, receiving just over $1 billion (the total deal was valued at $1.85 billion).

In terms of the future, it is now focused on its games business - both in terms of web and mobile games.

Commenting on the future of its mobile business, chairman Liu Dejian said that the company would 'shift its strategic focus to the R&D and operation of original mobile games'.

"In addition to the mobile games that were previously launched, we have successively launched a series of high quality mobile games, including Age of Egmont, War of Gods, Crazy Horde and The Celestial Saga, further enriching our mobile game portfolio," he said.

War of Gods, an anime-style strategy game, was published by Changyou on the Chinese App Store.

Age of Egmont, The Pirate and The Celestial Saga were internally-developed and self-published titles, demonstrating the company's new push into mobile games.

NetDragon also hopes to launch an English version of its game Conquer Online in late 2013, with side-scrolling beat-'em up Fatal Fighter and the mobile version of web game Eudemons Online both due for release in early 2014.

Warchest for growth

"We believe that, by leveraging our experiences accumulated in R&D and operation of games, as well as our open minding seeking win-win cooperation with operators, our mobile internet business will move into a new stage of growth and become an increasing revenue contributor to NetDragon," Dejian said.

He also explained that NetDragon would use the proceeds - around $500 million - from the 91 Wireless sale to"incubate our game business and new strategic emerging businesses".

It is also looking to build up an online education business; something it has already begun ramping up with a joint venture company set up with Hon Hai and Vision Knight Capital.

[source: NetDragon]