Chinese online game operator The9 Limited (Nasdaq: NCTY) announced fourth quarter 2007 net revenues of US$58.1 million, up 34 percent quarter-on-quarter and 50 percent year-on-year, after market close on Wednesday. The9 recorded net income of $11.8 million, up 125 percent quarter-on-quarter but down 18 percent from the fourth quarter of 2006. In the fourth quarter, the company attributed $53.1 million of its revenue to the operation of subscription-based games, an increase of 39 percent from last quarter and 38 percent from last year. Revenue from item-based games was up 23 percent quarter-on-quarter to $5.4 million in the fourth quarter. The company recorded aggregate peak concurrent users (PCU) of 1.2 million users in the quarter. By December 31, The9 had more than 33.4 million aggregate registered users. The9's fully diluted earnings per share fell to in the fourth quarter, compared to $0.17 in the third quarter.
The9 also said that it has named Oliver Xudong He to serve as acting chief financial officer effective March 1 while it looks for a permanent CFO to replace out-going CFO Hannah Lee. The9 announced Lee's resignation in January.
For fiscal year 2007, The9 recorded 30 percent growth in net revenues to $175.4 million, while net income fell 23 percent to $33 million.