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China’s NetDragon eyes return to profit on strong mobile games, online learning businesses

Company bounces back from two consecutive annual losses

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Simon Leung says growth drivers for NetDragon would be its sharpened focus on mobile games and fast-developing online learning business. Photo: Dickson Lee
NetDragon Websoft, the Hong Kong-listed operator of China’s top online gaming portal, is targeting a return to operating profitability this year, rebounding from two consecutive annual losses.

The growth drivers for NetDragon would be its sharpened focus on mobile games and fast-developing online learning business, company vice-chairman Simon Leung Lim-kin told the South China Morning Post.

“We plan to invest more in mobile games, and have a strong pipeline of new games to be launched this year,” Leung said. “We’ll continue building online communities to expand our online learning business ... and work closely with the education authorities in China and around the world.”

Headquartered in Fujian province, NetDragon reported on Thursday a wider net loss of 202.7 million yuan (US$29.4 million) last year, from 142.9 million yuan in 2015, on higher selling and marketing, administrative and development, as well as a 77.8 million yuan provision for product impairment.

Its revenue, however, more than doubled to 2.8 billion yuan from 1.3 billion yuan a year earlier.

That increase was on the back of a 22.8 per cent year-on-year rise in games business to 1.2 billion yuan, led by its Eudemons Online and Eudemons Online Pocket Version titles.

Simon Leung says NetDragon aims to expand its online education business from K-12 (kindergarten-to-grade 12) to the professional market. Photo: Dickson Lee
Simon Leung says NetDragon aims to expand its online education business from K-12 (kindergarten-to-grade 12) to the professional market. Photo: Dickson Lee
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