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Focusing on single player games, SkyMobi sees FY14 Q3 sales up 24% to $34 million

Counter-intuitive bet is playing off
Focusing on single player games, SkyMobi sees FY14 Q3 sales up 24% to $34 million

Chinese mobile app store and publisher SkyMobi (NASDAQ:MOBI) has announced its FY14 Q3 financials, for the three months ending 30 September 2014.

Total revenues were $34.4 million, up 81 percent year-on-year and 24 percent quarter-on-quarter.

Of this, SkyMobi's smartphone business made up 85 percent of revenues, up from 77 percent during Q2.

The reason for this was the strong growth in SkyMobi's current push in terms of publishing single player games, both through its Maopao smartphone platform and other Chinese app distribution channels.

Breaking smartphone revenues further down:

  • Single player games accounted for $22.8 million, up 50 percent quarter-on-quarter, with ARPU of $1.54,
  • Multiplayer games accounted for $4.1 million, down 4 percent, with ARPU of $27.40,
  • Advertising revenue was $2.2 million.

Invest to succeed

However, net profit was $2.4 million, down 77 percent quarter-on-quarter due to higher channel costs and revenue shares with distribution channels and developers.

The company ended the quarter with cash and equivalents worth $40.5 million, up significantly as it converted the majority of its investments. 

Skymobi's Maopao app store had an average daily active user total of 500,000, up 10 percent quarter-on-quarter, while average monthly active users were 33 million, also up 10 percent.

The conversation rate of players to payers was 15.1 percent, up from 10.2 percent three months ago.

More content, more countries

"We are very pleased with our robust third quarter financial and operational results, which reflect the strong growth momentum of our smartphone business, as well as the further expansion of our mobile game distribution capabilities and enrichment of our mobile game offering," said CEO Michael Tao Song.

"Supported by our deep strategic partnerships with China Mobile, China Unicom and China Telecom, we have refined our model of content distribution over the Maopao platform and further expanded our offline presence at telecom stores nationwide."

Song also pointed to Skymobi's deals to localise and publish western games including Major Mayhem, Battle Tower, Beach Buggy Racing and Dungeon Quest, while it's planning to publish Chinese mobile games in southeast Asia.