Chinese wireless value-added services company KongZhong Corporation (KONG) has released its unaudited third quarter 2008 financial results showing total revenues for the third quarter of 2008 increased 46% year-over-year and increased 7% quarter-over-quarter to USD25.05 million.
Prefacing the announcement of its quarterly results, KongZhong said that mainly because of the financial crisis, market conditions and the company's low market capitalization, in the third quarter the company recorded USD21.62 million of provision for impairment of goodwill associated with the wireless value-added services segment.
WVAS revenues, excluding mobile game revenues, increased 38% from the third quarter of 2007 and increased 2% quarter-over-quarter to USD22.07 million. Mobile game revenues increased 179% from the third quarter of 2007 and increased 63% quarter-over-quarter to USD2.37 million. Mobile advertising revenues increased 104% from the third quarter of 2007 and increased 57% quarter-over-quarter to USD0.61 million.
Net loss was USD21.57 million, which includes the USD21.62 million provision for the impairment of goodwill.
As of September 30, 2008, the company had USD134.89 million in cash and cash equivalents. Cash in-flows from operating activities totaled USD9.74 million in the first nine months of 2008. Based on information available on November 18, 2008, the company expects total revenues for the fourth quarter of 2008 to be between USD25.5 million and USD26.5 million.