Giant Interactive Announces Second Quarter 2012 Results

PR Newswire

Monday, August 6th 2012

SHANGHAI, Aug. 6, 2012 /PRNewswire-Asia-FirstCall/ -- Giant Interactive Group Inc. (NYSE: GA) ("Giant" or the "Company"), one of China's leading online game developers and operators, announced today its unaudited financial results for the second fiscal quarter ended June 30, 2012.

Second Quarter 2012 Highlights as Compared to First Quarter 2012 ("QoQ") and Second Quarter 2011 ("YoY"):

Net revenue was RMB528.2 million (US$83.1 million), up 3.8% QoQ and up 21.1% YoY.
Gross profit was RMB461.1 million (US$72.6 million), up 4.5% QoQ and up 23.7% YoY. Gross profit margin for the second quarter 2012 was 87.3%.
Net income attributable to the Company's shareholders was RMB307.2 million (US$48.4 million), up 5.2% QoQ and up 2,920.6% YoY. The margin of net income attributable to the Company's shareholders for the second quarter 2012 was 58.2%.
Basic and diluted earnings per American Depositary Share ("ADS"), each of which represents one ordinary share, were RMB1.30 (US$0.20) and RMB1.26 (US$0.20), respectively, compared to basic and diluted earnings per ADS of RMB1.24 and RMB1.22, respectively, for the first quarter 2012, and basic and diluted earnings per ADS of RMB0.04 and RMB0.04, respectively, for the second quarter 2011.
Non-GAAP net income attributable to the Company's shareholders was RMB339.4 million (US$53.4 million), up 5.2% QoQ and up 23.6% YoY. The margin of non-GAAP net income attributable to the Company's shareholders was 64.3%.
Basic and diluted non-GAAP earnings per ADS were RMB1.43 (US$0.23) and RMB1.40 (US$0.22), respectively, compared to basic and diluted non-GAAP earnings per ADS of RMB1.37 and RMB1.34, respectively, for the first quarter 2012, and basic and diluted non-GAAP earnings per ADS of RMB1.19 and RMB1.17, respectively, for the second quarter 2011.
Active Paying Accounts ("APA") for online games was 2,216,000, up 1.4% QoQ and up 11.1% YoY.
Average Revenue Per User ("ARPU") for online games was RMB233, up 1.9% QoQ and up 9.7% YoY.
Average Concurrent Users ("ACU") for online games was 685,000, up 0.5% QoQ and up 4.7% YoY.
Peak Concurrent Users ("PCU") for online games was 2,307,000, up 0.9% QoQ and up 8.7% YoY.

Please refer to the table on page 7 for reconciliation between net income attributable to the Company's shareholders on a GAAP to non-GAAP basis.

"We are pleased to deliver another solid quarter, as we continue to perform well in our operating metrics, which is supported by the sustained strong performance of our second flagship game ZT Online 2. We are also pleased to see our profitability remain at a high level while we strengthen our commitment to R&D and sales and marketing, both of which are on pace with our new game launches," said Mr. Yuzhu Shi, Giant's Chairman and Chief Executive Officer.

"We are delighted that we have made encouraging progress during the quarter in all aspects, and we expect to see sustained progress in the performance of ZT Online 2, a title which we believe will go from strength to strength following the launch of its first expansion pack and upcoming micro-client version, Qianjun Online, on the Qihoo 360 game platform."

"In addition to launching the micro-version of ZT Online 2, a number of much-anticipated launches will occur in the second half of the year, as follows:"