2007 Q3

2007-10-29

Benefited from peak period during summer vacation, the revenue for third quarter of year 2007 increased 26.43% QoQ (YoY+11.16%) to NT$ 803,417 thousand. The revenue growth is driven by “Lineage 1”’s latest expansion accompanied with newfangled in-game activities and “Maple Story”’s continuous attraction for kids and young students. The gross margin rate increased to 51.95% due to the growth in the higher-margin products. With proper allocation of internal resources to restrain the excessive increase of operating expenses, the operating income for this quarter surged 79.73% YoY. Moreover, with the improvement of investees, the pretax income and net income both substantially surged on QoQ and YoY basis. Despite the publishing business has been transferred to Gamania’s subsidiary “FUNdation DIGITAL ENTERTAINMENT Co., Ltd.” since the first quarter of 2007, 9-month revenues ended Sep 30 2007 revealed sustainable growth to NT$ 2,160,115 thousand. The growth is attributed to the increase of on-line game business, YoY around 8.5%, with the rise of revenues from newly launched games and the continuous contribution by many long-lived games. The amount of non-operating expenses largely decreased due to the improved operation of many subsidiaries and realized gain on disposal of investments. The net Income for 9-month achieved NT$ 329,157 thousand with EPS NT$2.30. “Bright Shadow” has been officially launched with revenue contribution since Oct 2007. Based on current business outlook, the management team’s expectations for Gamania’s future performance are positive while up-coming launch of self-developed products such as “SianMoDao”, “Zodiac”, and etc.