Perfect World Announces Q2 Earnings Results

Shares of Perfect World PWRD ended the regular session higher by 1.20%, at $18.59. Shares are currently halted. Perfect World reported Q2 non-GAAP diluted EPS of $1.01 on revenues of $120.6 million. Results were unaudited. The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 890,000 in 2Q11, as compared to 905,000 in 1Q11 and 886,000 in 2Q10. "We are pleased to announce another upbeat quarter. Despite the absence of any grand promotional holiday similar to the Chinese New Year, our results this quarter came in above the high-end of our guidance, with revenues rising by 8.5% from last quarter due to solid performance of recently launched new games including 'Forsaken World' and 'Empire of the Immortals,' continued strength from our existing portfolio and strong growth in our overseas operations," said Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "Our bottom-line performance was similarly strong. Turning to the third quarter, we launched unlimited closed beta testing for our first 2D martial-arts MMORPG, 'Heaven Sword and Dragon Saber,' several days ago. The initial feedback shows the game, which is based on a classic martial-arts novel by one of China's most popular writers, has so far been well received by Chinese players. Although this game is still ramping up on the traffic side and we are confident about its long-term performance, as part of a game's normal growth trajectory, we do not expect a significant revenue contribution from this game until later in the year." Perfect World Co., Ltd. is an online game developer and operator in People's Republic of China. The company develops online games based on its game engines and game development platforms.