More than 40% of the high growth period is over

Two U.S.-listed Chinese online gaming companies released the first quarterly results 17th local time, as investors worried about future performance growth, perfect time shares fell 25%, the giant network 1.76%, both suffered "black Monday."

For China's online gaming stocks of the selling phenomenon, an online game of listed companies executives pointed out that more than 40% of the period of high-speed growth has passed, China's online gaming market share 10 times times the decline in growth, is consistent with the law.

Perfect Time and Space:

Second-quarter results expected to fall in the chain

Perfect time and space earnings show that the first quarter income and profit growth has maintained a good growth rate: the total income of 625 million yuan, the chain growth of 2.8%, year-on-year growth of 47%; non-US GAAP operating profit of 344.9 million yuan, the chain growth of 15.6%, year-on-year growth of 40.3%.

However, the company's forecast for the second quarter fell, with two quarters expected to be roughly 594 million to 625 million yuan, up 14% to 20% year-on-year, but flat or slightly lower than the quarter. The forecast directly led to a plunge in the company's share price.

In this respect, the perfect time and space company responsible person to accept the Chinese securities newspaper reporter interview, said, the reason for the lower expectations is to improve the life cycle of the existing games to strengthen the sustainability of the company's growth, so decided to slow down some game promotions and fees in the second quarter to further enhance the game's attractiveness and expand the user base, Moderately lowered the relatively high ARPU value (per capita pay level) to a healthier level in the previous quarter.

The person said he did not care about the fall in share prices and the momentary "misreading" of investors. Perfect time and space to guarantee the production of game products, postpone the launch of new products, even if this will make a quarter of the financial data are affected. In fact, perfect time and space for this year's game growth prospects remain bullish, the future will continue to expand through globalization to obtain overseas revenue and profits.

Giants Network:

Performance rebound depends on new game

Another reported giant has seen its revenues and profits fall in the current quarter, but thanks to a dense increase in new releases, analysts say the future could be back on track.

Data show that the first quarter total income of 304.4 million yuan, down 18.5%, the chain growth of 10.3%, attributable to the shareholder net profit of 185.2 million yuan, down 20.1% year-on-year decline 6.3%. Although no forecasts were made for the two quarterly results, many of the quarterly data segments rose by more than 20% per cent on a month-on-month basis.

On the same day, giant network announced the launch of the "Fairy Road" in the beta. In addition, "Journey 2" is expected to carry out large-scale testing in the third quarter, the giant Chengdu branch of the 3D online games "Dragon Soul" will be in the three quarter into the beta. Agent operation "Allods Online" in the second quarter began to play the localization of the game. The first external release of the new agent "Elsword", which is a Korean KOG company developed 3D Horizontal version of the action of fighting online games, is expected to open in the third quarter of the domestic technical testing.

Giant network president Liu Wei said that the new game launch will increase the company's revenue source, at present more than 90% of the income from the "Journey" series of contributions, of which "green journey" accounted for about 1/4.