The9 (NCTY) says net revenues for the first quarter of 2005 grew by 44.8% quarter-over-quarter and 92.1% year-over-year to US$1.5 million. Gross profit decreased by 24.8% quarter-over-quarter and increased 8.7% year-over-year to US$0.56 million.
Net Loss was US$1.3 million, a change from net income of US$0.94 million from the fourth quarter of 2004 and from net income of US$0.41 million of the same period last year.
Online game and virtual community services revenues were primarily derived from sales of playing time for The9's proprietary online virtual community game, "The9 City", and Mystina Online. For the first quarter 2005, revenues of online game and virtual community services increased 267.8% quarter-over-quarter to US$0.03 million, of which revenues from MO represented 77.5% or US$0.02 million.
Revenues from game operating support, website solutions and advertisement are mainly from the provision of game operating support to 9Webzen in connection with the operation of MU in China. The game operating support services provided to 9Webzen mainly include payment collection and processing and user membership management, and production of prepaid MU cards.
For the first quarter of 2005, revenues from game operating support, website solutions and advertisement were US$0.38 million, a decline of 47.5% quarter-over-quarter or 43.1% compared to the first quarter 2004. The decrease in revenues in the first quarter 2005 was mainly attributable to the decline in revenues received from the MU China operations.
