Chinese wireless value-added services firm KongZhong Corporation announced its unaudited fourth quarter 2009 and full year 2009 financial results and showed a net income increase for last year.
Total revenues for the fourth quarter of 2009 increased 28% year-over-year to USD34.3 million, while gross margin decreased to 46% in the fourth quarter from 49% in the third quarter of 2009. Net income in the fourth quarter was USD2.02 million, a 286% increase compared with the fourth quarter of 2008 net income of USD0.52 million.
Total revenues were USD131.30 million for the full 2009 fiscal year, and net income in 2009 was USD12.58 million, an increase compared with 2008 net loss of USD20.66 million.
Chairman and CEO Wang Leilei stated: "Although we've entered another period of new policies implemented by our mobile operator partners, KongZhong continued to generate positive cashflow but more importantly, through our acquisition of Dacheng Networks have begun to diversify our business across mobile and PC-based Internet gaming platforms, where we believe we are well-positioned to be one of the leading players in the China market."
He finished: "Although our mobile related businesses will continue to experience some short-term fluctuations due to newly introduced mobile operator policies, we continue to believe that there will be an ongoing rationalization of the mobile Internet market, which will benefit large local players, such as ourselves. As an example, traffic on Kong.net in 4Q09 continued to reach record levels of traffic and users, growing roughly 40% from 3Q09, as the number of high quality large-scale mobile Internet sites remains limited, especially those focused on mobile entertainment."