Chinese online game operator The9 Limited (NCTY) says its net revenues for the second quarter of 2006 grew by 21% quarter-over-quarter and 363% year-over-year to CNY257.6 million.
Hannah Lee, Vice President and Chief Financial Officer, commented, "We're encouraged to see Blizzard Entertainment's World of Warcraft once again shows great revenue and earnings momentum in the second quarter of 2006. With the continuous growth of the concurrent user level in the second quarter, we plan to open the seventh server site for the WoW game in late third quarter this year."
Net income for the second quarter of 2006 was CNY84.3 million, a 43% increase from CNY58.8 million in the first quarter of 2006. Excluding CNY11.2 million financial subsidy received from the local government in the second quarter of 2006, net income for the second quarter of 2006 increased by 24% sequentially from the first quarter of 2006.
Gross profit for the first quarter of 2006 increased by 31% to CNY124.1 million from CNY95.1 million in the first quarter of 2006. Gross profit margin increased to 48% for the second quarter of 2006 from 45% in the previous quarter.
As of June 30, 2006, the company's total cash and cash equivalents balance was CNY657.8 million, compared to the total cash and cash equivalents of CNY611.7 million as at March 31, 2006. The increase was mainly due to the proceeds received from the sales of prepaid game cards.