Perfect World Co. Ltd. (PWRD) Tops Q1 EPS by 11c

Perfect World Co. Ltd. (NASDAQ: PWRD) reported Q1 EPS of $0.64, or $0.70 on a non-GAAP basis, both better than analyst estimate of $0.53. Revenue for the quarter came in at $143.3 million versus the consensus estimate of $140.7 million.

r. Robert Xiao, CEO of Perfect World commented, "We are pleased to announce our first quarter results. Our total revenues came in line with the high end of our expectations, which was slightly softer than the strong fourth quarter of 2013. In the first quarter of 2014, we decelerated promotional activities for our client-based MMORPGs and remained focused on content development of our portfolio and pipeline. However, we are pleased with the continued growth and meaningful revenue contribution of our mobile games in the quarter. The performance of our eye-catching RPG mobile game, 'Return of the Condor Heroes,' remained strong and we continued to expand our portfolio of mobile games by launching our first 3D RPG mobile game 'Fantasy of the Immortals' earlier this year."

"We also have a variety of upcoming titles in our mobile game pipeline, including 'Forsaken World,' 'Touch,' 'CrossGate Mobile' and 'Swordsman Mobile.' The rich line-up of mobile and web games combined with our comprehensive and well-rounded pipeline of exciting client-based games are the major components of our key competitive advantages that we remain committed to sharpening. Among our upcoming client-based games across a wide range of genres, 'DOTA2' is currently at the early stage of commercialization and is gradually ramping up its contribution. We look forward to having a full-scale open beta testing for this game in China soon. Our highly-anticipated 'Legend of the Condor Heroes,' a 3D MMORPG based on one of Louis Cha's classic martial arts novels, is currently under development. 'Neverwinter,' an attractive title developed by our Cryptic Studios in the U.S., has garnered wide acclaim by gamers in North America and Europe and is expected to be launched in China later this year."

"In addition to our robust pipeline, our global strategy remains an important competitive advantage of our business and enables us to further strengthen our global presence. By launching more games through both our own overseas subsidiaries and our overseas partners, we continue to strengthen our extensive operating network beyond China. We will continue to buttress our leading position in the Chinese online game export market through our extensive overseas network, which covers more than one hundred countries and regions and contributes around one-fourth of our total revenues. We believe our profound global operating experience coupled with the strength of our specialized R&D studios in China and abroad will continue to enhance our capabilities to provide more high-quality games and premium services to players worldwide."

"Looking forward, we will remain committed to bolstering our competitive edge based on our diversified portfolio, extensive global operating network and solid global R&D capabilities as we look to sustain the long-term growth of our business."

Business Outlook

Based on the Company's current operations, total revenues for the second quarter of 2014 are expected to be between RMB891 million and RMB936 million, representing an increase of 0% to 5% on a sequential basis. This takes into consideration the expected growth from some of the client-based games the Company operates in China and the continued strength of the Company's mobile games.

For earnings history and earnings-related data on Perfect World Co. Ltd. (PWRD) click here.

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