Total revenue for Beijing-based online game company Perfect World (Nasdaq: PWRD) increased more than 14-fold from its 2006 third quarter earnings and 65 percent quarter-on-quarter to reach US$28.5 million in the third quarter of 2007, according to the company's earnings report released on November 8. Ninety-three percent of revenue came from online game operation. Net income for the company reached US$16.5 million, up from a net loss of approximately $2 million in the year-ago period and an increase of 136 percent quarter-on-quarter. In terms of games, active paying users under the item-based revenue model increased 34 percent from last quarter to reach 1.39 million users. Average revenue per active user increased 39 percent to reach $18.15. Aggregate average concurrent users (ACU) for Perfect World games reached 513,000 users, up 15 and 335 percent from the last quarter and the third quarter of last year, respectively. Perfect World estimates total revenues for the fourth quarter to come in between $26.67 million and $28.67 million.
Perfect World is expected to begin closed beta testing for its 3D MMORPG Chi Bi by early December, and plans to begin small-scale closed beta testing of its first 3D casual game Hot Dance Party by the end of the year. Perfect World will release Chi Bi commercially at a time that suits the co-promotion of Chi Bi and the movie "Red Cliff". The company announced in September that it had partnered with China Firm Group Corporation (CFGC) to jointly market Chi Bi and John Woo-directed "Red Cliff". The name for the game and movie are the same in Chinese.