NetDragon returns to profit on higher online games revenue
Fuzhou-based internet firm is latest mainland online games provider to post strong financial results this year on the back of a huge domestic market
NetDragon Websoft, the mainland Chinese online gaming giant, returned to profit in the first half of this year on the back of the Hong Kong-listed company’s record high revenue posted in the quarter ended June 30.
“Our games business brought robust growth as we executed our strategy to leverage our successful intellectual property,” said Liu Dejian, the founder and chairman of NetDragon, in a statement on Wednesday.
Research firm Newzoo recently forecast the global video games market to cross the US$100-billion mark this year, driven by the huge appetite for online and mobile content from the estimated 565 million gamers on the mainland.
The mainland games market is predicted to be worth US$27.5 billion this year, making it the world’s leader as global market revenue hits US$109 billion from US$99.6 billion last year, according to Newzoo.
Fuzhou-based NetDragon said in a regulatory filing on Wednesday that it recorded an interim net profit of 25.8 million yuan (US$3.9 million), compared with a 42.9 million yuan net loss in the same period last year.