Perfect World executives read the second quarter results: DOTA 2 years Open test

Beijing time August 20 afternoon news, The Perfect World (NASDAQ:PWRD) today released the second quarter of the 2013 fiscal year ended June 30 without the audit earnings. Earnings showed that the company's second quarter total revenue of 708.5 million yuan (about 115.4 million U.S. dollars), the same period last year, 676.4 million yuan, the first quarter of the renminbi 624.5 million yuan; The net profit attributable to the shareholders of the company is 80.7 million yuan (about 13.2 million USD), The 158.2 million yuan, down 49% from the same period last year, slipped 38% from the 131 million yuan in the previous quarter.

After the release of the financial results, the perfect World CEO H., CFO Liu Yongki and the Investor Relations department Vice President Wang Weiwei and other executives attended the conference call, interpretation of earnings points, and answer the analyst questions.

The following analysis is the main part of the question and answer session:

Macquarie analyst George Meng: "Carving Hero Biography" in the game can play the link, the company's future in this area have no further development plans? In addition, it is reported that China will ease the import of game consoles, how the company views?

H.: The company adds other devices to the game to optimize the PC user experience. We are also concerned about China's policy on game-machine imports, which has not changed in the past few years, so we don't expect huge or abrupt changes in industrial policy; in the case of PC games and game consoles, the company is strong, and if there is a chance, the company will enter the field.

Macquarie analyst George Meng: The company has released a new 3D role-playing tour "Ghost Fantasy", this real-time action game how to adapt to China's imperfect 3G speed?

H.: The company has simplified the technology to adapt the real-time game to the speed of the mobile phone, and a series of tests have proved that the current mobile Internet infrastructure can provide the conditions for the release of the game, in addition, the company and China Mobile and Unicom's cooperation is to provide players with a higher quality network. We are also evaluating the company's first 3D real time role play hand tour performance.

US Bank Merrill Lynch analyst Eddie Leung: first question, after the release of Neverwinter in the US and Europe, how much does the company's foreign business contribute to the company as a whole? The second question, the average number of simultaneous online users in the two quarter, is the number of "laughing and proud ol" included? This game was released at the end of the two quarter. Third question, can the company's future marketing costs be predicted?

Liu Yongki: "Neverwinter" in the United States and Europe, good performance, business contribution is not small, but the company does not disclose the proportion of revenue from different regions. On average, the company's online users reached 742,000 in the two quarter, with growth in the first quarter, which covers all of the company's games. In addition, the company does not disclose marketing costs.

Morgan Stanley analyst Timothy Chen: Can you give me an update on the company's web game and hand tour? How many games have been released in the perfect World, and how are they progressing? How much does the Web game and hand tour contribute to the company's business?

Liu Yongki: Two quarterly company released the Web game has "war Three", "Chu-han Legends", body feeling dance games "touch" and "Food Hunter".

Wang Weiwei: There are also "carved by God".

Liu Yongki: "Glyph of the Gods" hand Tour version.

H.: We are acting as "tribal conflict".

Liu Yongki: Three quarter We also want to release a series of web games and hand tour, but currently inconvenient to introduce. Performance contribution, the last four quarters to the first quarter of this year, the new release of web games and hand tour to the contribution of the company's revenue is not too much, we are optimistic about the future of China's web games and hand Travel market, the two types of games for the company's contribution will become increasingly big.

Jaffray analyst Mark Marostica: What is the average number of online users of the company's other games, if not counting the "Holy Warrior Star" and "laughing at the lake ol"?

Liu Yongki: Regardless of these two games, the company's total average number of online users has not changed a little, some of the average number of games online users have a small drop, such as "The Sin", "Perfect World 2" and "martial arts," These old games a little down when normal. The average number of online users on the company's new three games is on the rise, so we think the upward trend will continue in the three quarter.

Jaffray analyst Mark Marostica: The company has previously mentioned that revenue from the "sin" and "Perfect World 2" slowdown, this trend will continue in the future?

H.: We focus on the company's old game to create revenue, but more efforts to extend the life cycle of old products and maintain their healthy operation. This year, the company will not be too serious about the commercialization of old games, we will make an assessment at the end of next year's strategy. At the same time, this year, the company's growth has come from new games to maintain the company's market share, which proves that the company's strategy is also playing a role.

CLSA analyst Jialong Shi: The company's hand tour to the revenue contribution may not be, but can you tell me the two quarter of each section of the monthly maximum revenue? A year later, how does the hand tour contribute to the company? In addition, the company mentioned that it will pay dividends from this year, can you tell me what the dividend payout rate will be in the 2013 year?

Liu Yongki: Two quarterly contributions from web games and hand tours were more than in the first quarter, but growth was small; these games were published quarterly and two, so it's not possible to predict what happens after a year. In terms of dividends, the rate of payments associated with the company's financial performance and cash situation is currently unpredictable.

Oppenheimer analyst Andy Yeung: could you introduce the timetable of the company in China, "DOTA 2", "Carving Heroes Biography" and "Neverwinter"?

H.: The company will soon release the "Holy King", after the "DOTA 2", we are actively fighting for the release of the game license, the company is currently building a server for this game, recruitment of users, "DOTA 2" in the end of this year should be able to provide open testing. "Neverwinter" and "Carving Hero Biography" will be released in the next few quarters.

Oppenheimer analyst Andy Yeung: How does the company distribute hand tours? Do you have any cooperation with other platforms?

H.: Yes, we have more distribution channels. We have our own publishing style and the "Tiger receptacle" operating network, and the company also cooperates with other platforms. The official release only cooperates with the company's strategic partner, China Mobile and Unicom.

86 Securities analyst Nick Ning: Can you compare the ROI of company PC client games, PC Web games and hand tours? Does the hand swim higher? How do companies allocate investment in several types of games?

H.: We know the ROI of the PC client game, but there is not enough data on the web game and the Hand tour. According to market research, we think that most game development companies ' main revenue comes from the end of the tour because the market is relatively mature. The distribution channel of the web game is too long, the return relative end swims to be small. The hand swims the data to be less, cannot compare, our competitor swims the profit situation cautiously optimistic, but for the Ashes player's hand tour return should be all hand swims inside returns the biggest, this is also our one core competitiveness.

Nick Ning, 86 Securities analyst: is the company's competition from the end of the tour getting smaller? The perfect world's competitors have said they think the end-market competition is shrinking.

H.: There is no such sign, I think it is more and more intense. The company last quarter released several MMORPG market response is good, so not players do not like this kind of game, but the market lacks this kind of high-quality, design superb game.

Thomas Chong, an international analyst at BOC: The first question, "laughing and proud" and "The Holy Warrior Star" are very successful, I would like to know where the two players from the game? Is it a new player or a competitor? The second question is, how many developers are there on the company's PC side, web games and hand tours? Will there be any increase this year and next year?

H.: The company is getting new users, not the company's existing users, the new game does attract a lot of new users, but we do not know whether to come from competitors. In addition, the company has more than 2000 developers around the world, including web games and hand Travel department has hundreds of. In the future, the company will increase the number of hand tour developers.

William Huang, analyst at Barclays Bank,: How much does the company's new game contribute to the 10%-15% quarter-on-quarter growth forecast for the three quarter? How is the company's traditional game doing this summer?

H.: The contribution of the new game we did not refine, but "laugh proud of the lake ol", "Neverwinter" and "Saint Warrior star" will be in the three quarter of a full quarter to the revenue contribution. The old game's contribution three quarter will be flat with the two quarter.

William Huang, analyst at Barclays Bank, is there a target for the company's revenue from the "Holy Warrior Star" this year and next year? How is the game compared to the company?

Liu Yongki: We are very satisfied with the performance of this game, can not be compared with the game before the company, because the market situation has been different. I think the game will make a significant contribution to revenue in the three quarter, and I think the Saint-Warrior star will do well in the Southeast Asian market and Taiwan. (Tian Heng)