CHINESE online game operator The9 Limited has posted a 40 percent decline in second-quarter earnings.
The result follows the rotational shutdown of servers for the World of Warcraft, its major revenue source, an upgrading and greatly increased expenses for new product development.
Net income was 50.6 million yuan (US$6.7 million), or 1.9 yuan per fully diluted share, in the period, compared to the year-ago period earnings of 84.3 million yuan, or 3.42 yuan per share, the Shanghai-based company said in a statement yesterday.
Total gross revenue in the quarter increased five percent from the same period last year to 284.6 million yuan despite the reduced sales from WoW, as the company tried to diversify its revenue stream by launching a new title in late May.
"It was a transitional quarter," said Hannah Lee, The9's senior vice president and chief financial officer, referring to the launch of a new game and the infrastructure enhancement for WoW, which is "important and will benefit the game in the long run."
WoW, developed by Blizzard Entertainment, is the world's most popular online game and operated by The9 on the mainland. It has attracted more than 3.8 million players in China since it launched nationwide two years ago.
Zhu Jun, chief executive officer of The9, said in a conference call after the earnings release yesterday that the expansion set of WoW will be launched on the mainland on September 10.
The set, called The Burning Crusade, will help the company win back lost users and boost revenue.
Some WoW players have shifted to overseas servers as the mainland debut will be nine months later than its launch in Taiwan, Europe, the United States, Japan and South Korea.