Chinese online gaming company The9 Limited (NCTY) announced its unaudited financial results for the third quarter ended September 30, 2007.
Net revenues for the third quarter of 2007 increased by 17% quarter-over-quarter and by 35% year-over-year to CNY316.0 million. The9 reported total gross revenues of CNY333.3 million, which increased by 17% compared to CNY284.6 million in the second quarter of 2007 and by 36% compared to CNY245.8 million in the third quarter of 2006. The increase in total revenues was a combined result of increased online game services revenues and other revenues, offset slightly by decreased revenues from game operating support, website solutions and advertisement.
Gross profit for the third quarter of 2007 increased by 15% quarter-over- quarter and 23% year-over-year to CNY132.2 million. For the third quarter of 2007, operating expenses were CNY88.5 million, representing a 19% increase from CNY74.5 million in the previous quarter and a 99% increase from CNY44.6 million in the same period of last year.
For the third quarter of 2007, net income was CNY38.2 million, which decreased by 25% from CNY50.6 million in the second quarter of 2007 and by 41% compared to CNY64.3 million in the third quarter of 2006.
For the third quarter of 2007, fully diluted adjusted EBITDA (non-GAAP) per share was CNY3.99, compared to CNY4.42 for the second quarter of 2007 and CNY4.46 in the third quarter of 2006.