Linekong’s Chinese Online Game Net Profit Down 44%

Chinese game developer and publisher Linekong recently released its semi-annual financial report ended June 30, 2015, stating that its net profit decreased by 44% compared with the same period of last year.

Linekong's operating revenue for the second quarter of 2015 was CNY187 million, which decreased by 65% over the first quarter. From January 1 to June 30, 2015, the company's total operating revenue was CNY300 million, a year-on-year decrease of 17% from CNY362.8 million. Meanwhile, its net profit was CNY51.7 million, a year-on-year decrease of 44% from CNY92.4 million.

The financial report also showed that during the first half of 2015, Linekong's mobile game revenue was CNY279 million, accounting for 92.7% of its total revenue; its web game revenue was CNY7.9, accounting for 2.6%; and its client game revenue was CNY14 million, accounting for 4.7%. Linekong's self-developed games contributed 42.1% of its total revenue, while the remaining 57.9% was from operation of games developed by partners. So far, Linekong has launched 19 games.

Linekong said in the report that the company had 190 million registered players, an increase of 22.3% compared with the second half of 2014. Its monthly paid users increased from 250,000 in the same period of 2014 to over 290,000, representing a growth rate of 13.7%.

By the end of the reporting period, Linekong had published three games in South Korea. The company also set up an affiliate in the U.S. and established R&D and distribution teams in the country to accelerate international layout.