Chinese wireless value-added services firm KongZhong Corporation announced its unaudited first quarter 2010 financial results.
Total revenues for the first quarter of 2010 increased 37% year-over-year to USD40.64 million, with WVAS revenues accounting for USD25.9 million, a 3% increase from the previous quarter and a 9% increase from the same period last year.
Although the bulk of the company's WVAS services, both 2G and 2.5G, were negatively impacted by various new mobile operator policies implemented during the course of the first quarter 2010, its IVR services saw a strong seasonal increase due to the Chinese New Year holiday period. As a result, 2G revenues represented 91% of total WVAS revenues compared to 81% in the fourth quarter of 2009, while 2.5G services made up 9% of total WVAS revenues.
Total mobile game revenues in the first quarter were USD9.48 million, a 92% increase from the same period last year and a 29% increase from the previous quarter.
The company's CEO Leilei Wang, stated: "In the first quarter, KongZhong increased our efforts to transform our business from a traditional WVAS player into a cross-platform digital entertainment company. I'm pleased with the progress our team has made to date, especially our mobile game business, but believe we still have significant room for development and improvement."
Net income was USD3.17 million and total operating expenses increased 17% sequentially to USD14.04 million.