Chinese online gaming operator The9 (NCTY) said net revenues for the first quarter ended March 31, 2006 were CNY212.1 million.
Net revenues attributable to the operation of Blizzard Entertainment's World of Warcraft, including game playing time, merchandise sales and other related revenues, also remained steady at CNY209.9 million.
For the first quarter of 2006, online game services gross revenues were CNY220.8 million, remained relatively unchanged at CNY220.7 in the fourth quarter of 2005.
Gross profit for the first quarter of 2006 was CNY95.1 million, slightly down from CNY97.3 million in the fourth quarter of 2005. Gross profit margin remained steady at 45% for the first quarter of 2006 compared to 46% in the previous quarter.
For the first quarter of 2006, operating expenses decreased by 14% to CNY38.3 million from CNY44.7 million in the fourth quarter of 2005.
As a result of the aforementioned factors, for the first quarter of 2006, profit from operations increased by 8% to CNY56.8 million from CNY52.6 million in the fourth quarter of 2005.
As of March 31, 2006, the company's total cash and cash equivalents balance was CNY611.7 million, compared to the total cash and cash equivalents of CNY488.2 million at December 31, 2005.