Gamania Digital Entertainment Co (遊戲橘子) yesterday said net income plunged to NT$35 million (US$1.07 million) last quarter from NT$323 million in the first quarter, amid the slow season for the online gaming industry.
However, the company is upbeat about its outlook for the second half, as it expects a higher contribution from its e-commerce business during the high season and to cash in on a number of new gaming titles scheduled to be launched later this year.
Net income in the first half of the year was a record NT$389 million, or earnings per share of NT$2.28, surging 681 percent from a year ago. Revenue rose 60 percent to NT$4.63 billion.
In a bid to adapt to market trends and increase revenue sources, the company said it is expanding its business beyond online gaming, and plans to move into other areas, such as mobile payment, e-commerce, brand design, app development, crowdfunding, social media marketing and entertainment media production.
“The company’s greatest asset is our 3 million active users who on average spend about NT$200 per month on game-related purchases,” Gamania chief financial officer Su Hsing-hung (蘇信泓) told an investors’ conference.
For the time being, the company is vying to introduce its third-party online and mobile payments to users, who are already accustomed to buying products with the companies own gaming card, called the Gash card.
In addition, Gamania’s Jollywiz Digital Technology Co Ltd (樂利數位), a cross-board e-commerce subsidiary, has established a solid foothold in China and last year generated revenue of NT$900 million, Su said.
Jollywiz provides outsourcing services such as branding, customer relations and marketing for companies hoping to tap into China’s e-commerce market. It has been tapped to oversee the return of Motorola to China’s smartphone market and it facilitated Costco’s online sales of mixed nuts during last year’s Nov. 11 “singles day” event. Its other partners include Johnson & Johnson, Proctor & Gamble and a Taiwanese cosmetic products maker.
The e-commerce unit reported revenue of NT$400 million in the first half of the year and the figure is expected to grow at least 20 percent this year from last year, Su said, expecting the unit to begin yielding a profit in the second half.
The company is eyeing a fledgling on-demand content streaming platform that is tailored to suit the distinctive tastes of young people.
“In an age where content is king, conventional TV stations are quickly losing their relevance,” said Tsai Chia-chun (蔡嘉駿), chief executive officer of Coture (酷瞧), Gamania’s on-demand content streaming subsidiary.
Last week, Coture provided live streaming of a popular singing contest along with TV broadcasts that reached fans in China and other Asian markets with a high number of Chinese speakers, such as Singapore and Malaysia.
Coture is also looking into promoting Internet celebrities by providing them with full array of talent management, promotion services, and a video channel for content, Tsai said.
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