The9 rises after beating Q4 expectations
The9 Ltd. (Nasdaq: NCTY) shares rose in Friday trading after the China-based online game operator reported fourth-quarter earnings of $11.8 million, or $0.40 per share, compared with Wall Street analysts’ expectation of earning $0.25 per share.
Quarterly revenue increased to $61.9 million, versus analysts’ projection of $51.5 million. The firm said gamers played more of “World or Warcraft” during the quarter because of the launch of an expansion pack.
The firm’s quarterly operating expenses rose to $16.8 million due partly to a $2.6 million impairment charge, from $2.6 million during the year-ago period. The9’s expenses rose due to product development, sales, marketing and administrative costs.
The9 also reported operating expenses grew to RMB 122.6 million ($16.8 million) from RMB 54.7 million, due partly to an RMB 18.7 million ($2.6 million) impairment charge. The company's product development, sales and marketing, and general and administrative expenses also rose.
In Friday trading, NCTY shares rose 9.59%, or $1.73, at $19.71. Over the last 52 weeks, shares have ranged from $15.05 to $52.44.
About the Author
Reporter Will Atkinson is based in SmallCapInvestor.com's Washington, D.C. bureau.
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