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Giant network in the first quarter 2009 net profit of 33.9 million U.S. dollars

The morning of May 26 news network giant (NYSE: GA) today announced the closing on March 31, 2009 first quarter unaudited results. Reported, the first quarter of 2009 net revenues of 54.7 million U.S. dollars, the Central than the 5.8 percent growth; net profit of 33.9 million U.S. dollars, 20.1 percent decrease.
 
 
 
 The first quarter of fiscal 2009, reported the main points:
 
 
 
 The first quarter of 2009 net revenue growth of 5.8 percent than the Central, to 373.5 million yuan (about 54.7 million U.S. dollars);
 
 
 
 The first quarter 2009 gross profit growth ring than 5.9%, to reach 313.9 million yuan (about 45.9 million U.S. dollars);
 
 
 
 The first quarter 2009 gross profit margin was 84.0%;
 
 
 
 The first quarter of 2009 net profit decrease by 20.1% to reach 231.9 million yuan (about 33.9 million U.S. dollars). The first quarter of 2009 net profit rate of 62.1 percent;
 
 
 
 Per American Depository Receipts (ADS) of basic and diluted net earnings were 1.03 yuan (about 0.15 U.S. dollars) and 0.99 yuan (about 0.15 U.S. dollars), the first quarter of 2008 were 1.38 yuan and 1.33 yuan, the fourth quarter of 2008 were 1.26 yuan and 1.23 yuan. Per ADS on behalf of a common stock;
 
 
 
 The first quarter of 2009 excluding non-cash option other than the cost of Non-GAAP net profit of 240.2 million yuan (about 35.2 million U.S. dollars), the Central than the 19.5 percent decline. Excluding non-cash option expenses Non-GAAP net profit margin was 64.3%;
 
 
 
 Excluding non-cash option other than the cost of Non-GAAP basic and diluted earnings per share were 1.06 yuan (about 0.16 U.S. dollars) and 1.03 yuan (about 0.15 U.S. dollars), the first quarter of 2008 yuan and 1.43, respectively, 1.38 yuan, the fourth quarter of 2008 were 1.29 yuan and 1.26 yuan;
 
 
 
 The first quarter of 2009 online games (1) active paying account ( "APA") reached 1,236,000, 4.2 percent decrease, declining 14.5 percent year-on-year;
 
 
 
 The first quarter of 2009 online games (1) the average income to pay the user ( "ARPU") was 299.7 yuan, chain grew by 9.9% year-on-year decline of 7.8%;
 
 
 
 The first quarter of 2009 online games (1) the average number of online players at the same time ( "ACU") for 531,000, a 4.4% decrease, year-on-year decline of 2.8%.
 
 
 
 The first quarter of 2009 online games (1) the maximum number of players online at the same time ( "PCU") for 1,572,000, chain grew by 4.4% year-on-year decline of 4.5%.
 
 
 
 Online games including the "journey", "journey" Time Edition, "the journey" and the nostalgic version of "giant"
 
 
 
 Giant network史玉柱Chairman of the Board and CEO, said: "In the face of financial crisis, beginning in 2009 on the fundamentals of a good show, performance is also in line with the original expectations. From the chain, the net revenue and gross profit are to achieve a healthy growth, players gradually adapt to the flagship game, "the journey" The new charging system and improve function. I believe that we will bring about the changes to take a more balanced revenue model to help us continue to extend the "journey" of the life cycle. I. the second quarter we have been developing products with great concentration, not too much promotion, promotional activities. We expect to open in July test "journey" the largest-ever piece of information. >> Comment network information, Luoyang life: http://luoyanglife.com/  >> Luoyang discount forum I love life: http://bbs.luoyanglife.com/  >> Henan entrance examination Network: http://www.edu-ha.com/index.php  >> just one sentence: http://log-by-me.blogspot.com/
 
 
 
 "We know that a good product research and development company is the single most important strategy, the company currently has seven products under development, the product line in good condition. In this one," King of Kings III "at the end of the first quarter into the IC packaging and testing, to lay down our product line to expand the game an important milestone. In addition, we are pleased to see that "the journey of 2" in the second half of 2009 to meet with the players, our team is committed to this flagship game sequel to adapt to the tastes of a wider audience. the company will continue to improve the optimization of "giant", the "giant" has entered the official version of the technical trial.
 
 
 
 "In the first quarter of each game also introduced the reform project. Designated by the project accounting unit for small economies to avoid the big, R & D personnel to stimulate the entrepreneurial passion and ability to innovate. The proceeds of each R & D projects will be directly linked to income . At present, the program of research and development team has been enthusiastic response and support. "
 
The first quarter 2009 unaudited financial results
 
 
 
 Net revenue
 
 
 
 Giant network in the first quarter 2009 net revenues of 373.5 million yuan (about 54.7 million U.S. dollars), in the last quarter of 353.1 million yuan an increase of 5.8%; compared with last year's 471.6 million yuan over the same period fell by 20.8%.
 
 
 
 Giant network in the first quarter 2009 net revenue of online games for 370.5 million yuan (about 54.2 million U.S. dollars), in the last quarter of 351.9 million yuan to increase by 5.3%; compared with last year's 470.2 million yuan over the same period fell by 21.2%. Online Game of the ring than the net revenue growth is a result of players continue to accept and adapt to the third quarter of 2008, "the journey" to adjust the charging mode.
 
 
 
 Giant network the first quarter of 2009 online games for 531,000 of the ACU, the Central than the 4.4 percent decline, year-on-year decline of 2.8%; the first quarter of 2009 online games for 1,572,000 of the PCU, chain grew by 4.4% year-on-year decline of 4.5%. ACU and PCU remained relatively stable, reflecting the company's games to address the financial crisis and the "journey" to restore the capacity of adjustment. The first quarter of 2009, the ARPU for online games 299.7 yuan, chain grew by 9.9%, 7.8% year-on-year decline. The first quarter of 2009, the APA online games to 1,236,000, 4.2 percent decrease, declining 14.5 percent year-on-year. Than the view from the ring, ARPU was due to increased revenue growth over the APA, the APA since the first quarter after strong growth remained relatively stable.
 
 
 
 Main business costs
 
 
 
 Giant network of the first quarter of 2009, main business cost of 59.6 million yuan (about 8.7 million U.S. dollars), the Central than the 5.3 percent increase, an increase of 17.4%. Ring than the increase in revenue was mainly due to increase in sales tax led to an increase of 190 million yuan. The rise in the same period last year mainly due to expansion caused by the server hosting fees and an increase in depreciation of assets.
 
 
 
 Gross profit and gross margin
 
 
 
 Giant network in the first quarter 2009 gross profit of 313.9 million yuan (about 45.9 million U.S. dollars), the Central than the 5.9 percent increase, up 25.4 percent decline. Giant network of the first quarter 2009 gross margin was 84.0%, flat with last quarter, but the same period last year declined 89.2 percent.
 
 
 
 Operating expenses
 
 
 
 Giant network the first quarter of 2009 at a total cost of the operation of 81.9 million yuan (about 12 million U.S. dollars), in the last quarter of 82.9 million yuan fell by 1.2%, compared with last year's 99.8 million yuan over the same period fell by 17.9%. Reduction in operating expenses was mainly due to the effective control of our costs, but also in sales / marketing costs and management fees on a more cautious spending.
 
 
 
 Giant network of the first quarter of 2009 R & D cost of 32.3 million yuan (about 4.7 million U.S. dollars), in the last quarter of 25.2 million yuan increasing by 28.2%, but compared with last year's 11.8 million yuan over the same period also increased by 172.9%. Ring than the increase mainly due to the company to recruit more R & D personnel, resulting in an increase in the amount of wages paid. The rise in the same period last year mainly due to the company expanded its R & D departments, in order to promote the development of new products and old products.
 
 
 
 Giant network of the first quarter of 2009 sales and marketing cost of 30.2 million yuan (about 4.4 million U.S. dollars), in the last quarter of 45.4 million yuan fell by 33.4 percent, compared with last year's 64.9 million yuan over the same period also dropped by 53.4%. Mainly due to our control of the sales and marketing personnel costs, and optimize promotional activities.
 
 
 
 Giants in 2009 the first quarter of the network management cost of 29.4 million yuan (about 4.3 million U.S. dollars), in the last quarter of 41.8 million yuan fell by 29.7%, compared with last year's 28.1 million yuan over the same period increased by 4.6%. Chain perspective, the previous quarter as a result of network meter提雷Grand 6.5 million yuan of one-off bad debts, compared to, this quarter has decreased administrative costs; In addition, professional consulting fees and options to reduce the cost of management costs are also the reasons for the decline . Administrative expenses increased year-over-year primarily due to the expansion of the company's business.
 
Government subsidies
 
 
 
 Giants in 2009 the network of government subsidies in the first quarter of 1000 million RMB (about 1,500,000 U.S. dollars), on behalf of the municipal government of a business tax return. The return to nature of tax and business tax-related, so we put it as the offset of operating costs.
 
 
 
 Interest income
 
 
 
 Giants in 2009 the network of interest income for the first quarter of 26.1 million yuan (about 3.8 million U.S. dollars), the fourth quarter of 2008 to 41.3 million yuan, the first quarter of 2008 for 53.8 million yuan. Central interest income ratio and the reasons for the decline year-on-year the company invested in 51.com and the stock repurchase, the cash position change, but also by the decline in market interest rates.
 
 
 
 Income tax expense
 
 
 
 Giant network of the first quarter of 2009 income tax cost of 25.9 million yuan (about 3.8 million U.S. dollars). The fourth quarter of 2008 for the income tax 34.9 million yuan in profits, mainly due to the first three quarters of 2008 to non-preferential tax policy income tax provision has been more than a red back.
 
 
 
 Net profit
 
 
 
 Giant network of the first quarter of 2009 net profit of 231.9 million yuan (about 33.9 million U.S. dollars), in the last quarter of 290.3 million yuan a decrease of 20.1% over last year's 338.7 million yuan over the same period fell by 31.5%. Ring than the decline in the previous quarter mainly due to recognition of the income tax 34.9 million yuan in profits, and income tax expenses in the quarter to 25.9 million yuan. Year-on-year decline in the third quarter of 2008 from the "journey" to adjust the impact fee model. Giant network of the first quarter of 2009 net profit rate of 62.1 percent, for the first quarter of 82.2 percent, 71.8 percent the same period last year.
 
 
 
 Cash, cash equivalents and short-term investments
 
 
 
 As of March 31, 2009, the Giants had cash, cash equivalents and short-term investment in the gross value of 5.2111 billion yuan, or about 762.6 million U.S. dollars. As of December 31, 2008 to 5.0681 billion yuan. Although in the first quarter of 2009 to use its cash to repurchase stock, but continued operating the inflow of cash flow the company still increased cash balances.
 
 
 
 Share repurchase program
 
 
 
 In August 2008, the Giants take a share repurchase program authorizing the repurchase of up to a maximum value of 150 million U.S. dollars of the "American Depository Receipts" ( "ADS"). As of March 31, 2009, According to the plan, the Giants have been in the open market repurchase 16,517,985 shares of ADS, the gross value of 106.9 million U.S. dollars. The company will continue to SEC approval and the provisions of the Board of Directors of the time frame under the stock repurchase.
 
 
 
 Cash Dividends
 
 
 
 Board of Directors announced that the deadline to March 27, 2009 issuance of shares to shareholders of 0.18 U.S. dollars per share cash dividend, the dividend declared in April 14, 2009 all pay, total value of 40,600,000 U.S. dollars.
 
 
 
 Forecast for the second quarter of 2009
 
 
 
 The company is about to launch in July, "the journey of" large-scale information on film, so the second quarter the company significantly reduce the "journey" line online promotional activities. At present, the Giants are expected in the second quarter 2009 total net revenue of 343 million yuan to between 373 million yuan.
 
 
 
 Conference call
 
 
 
 Giants executives layer network is scheduled for May 26, 2009, Tuesday, the United States 8:00 am EST / US 5:00 western time / 20:00 GMT to hold an investor conference call to discuss first quarter 2009 performance, as well as recent trading activity. Who wish to join the telephone conference, the United States please dial +1 (800) 573-4842, south China, please call +86 10 800 130 0399, China's northern region, please call +86 10 800 152 1490, outside the United States and China please call +1 (617) 224-4327 and enter the password 84974436, you can attend the meeting.
 

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