Changyou.Com Ltd (NASDAQ:CYOU) just announced its unaudited financial results for the third quarter ended September 30, 2018.
Mr. Dewen Chen, CEO, commented, “The performance of our flagship game, TLBB PC, again exceeded our expectations thanks to the continuous improvements that we made to the in-game environment and the launch of promotional events in the summer expansion pack. Meanwhile, we were able to steady the pace of decline of Legacy TLBB Mobile’s revenue from the previous quarter by introducing new gameplay and effectively improving our operation of the game. On the game development side, we will continue to work on making breakthroughs in key areas such as graphics and gameplay in an effort to roll out blockbuster games as we look to adapt to the continuing changes in the gaming market.”
Changyou.Com Ltd (NASDAQ:CYOU) promulgates itself as a company that develops and operates online games in the People’s Republic of China.
The company operates through Online Game, Platform Channel, and Others segments. It develops, operates, and licenses online games, including interactive online games that are accessed and played simultaneously by various game players through personal computers; and mobile games played on mobile devices.
The company also operates 17173.com Website, an information portal that provides news, electronic forums, online videos, and other information services on online games to game players; and offers various software applications for PCs and mobile devices, as well as purchases pre-film cinema advertising slots from movie theater operators for advertisers. As of December 31, 2017, it had approximately 5.5 million total average monthly active accounts; and 2.0 million total active paying accounts.
The company was founded in 2003 and is headquartered in Beijing, the People’s Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.
Fresh Start?
As noted above, CYOU just announced its unaudited financial results for the third quarter ended September 30, 2018.
CYOU has responded well, rallying about 35% over the past five days, with this news clearly driving the action. Shares of the stock have powered higher over the past month, rallying roughly 36% in that time on strong overall action.
Mr. Qing Wei, Chief Games Development Officer, added, “During the quarter, we launched a new expansion pack for Legacy TLBB Mobile that added a new simulated home system and organized a series of other events that effectively increased user engagement. In the fourth quarter, we will introduce a new clan and more original gameplay that we believe users will surely love, host a number of new events, and keep optimizing the game based on careful review of ongoing user feedback.”
Mr. Yaobin Wang, CFO of Changyou, added, “Our total revenue and net income exceeded our guidance due to the solid performance of our online games. For cinema advertising, we saw a significant rebound in revenue following the weak performance last quarter, which was due to a strategy adjustment related to the acquisition and sale of advertising resources.”
Changyou.Com Ltd (NASDAQ:CYOU) managed to rope in revenues totaling $111.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of -26.2%, as compared to year-ago data in comparable terms.
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($571.1M against $693.2M, respectively).