Tue, Jul 04, 2017 - Page 12 News List

Cayenne shares rise ahead of new game

By Lauly Li  /  Staff reporter

Cayenne Entertainment Technology Co’s (紅心辣椒) shares yesterday surged to the 10 percent daily limit to close at NT$43.55 in Taipei trading ahead of the online game developer’s launch of a popular PC game on Friday.

A total of 879,000 shares were traded during the session, with buy orders of 409,000 shares pending to be executed in the next session. The closing price exceeded Cayenne’s quarterly average price of NT$36.87, Taipei Exchange data showed.

Cayenne in April acquired the distribution rights for a PC-based massively multiplayer online role-playing game from Suzhou EnergyStone Network Tech Co Ltd (靈石遊戲), a Chinese game developer, in April for an undisclosed price.

Cayenne chairman Joe Deng (鄧潤澤) at the time told reporters that the Chinese firm had spent two years developing the game and the product had received a positive response in the Chinese market.

The game was considered one of the 10 most expected games this year in China, Cayenne said.

Given that Cayenne did not launch new games in the first half of this year, it said it has high hopes that the Chinese-made game will spur growth momentum over the summer.

The firm also plans to introduce in September an online role-playing game developed by a Japanese game developer, the firm said.

Revenue from the Japanese game reached between NT$40 million and NT$50 million (US$1.31 million and US$1.64 million) per month after it was launched by a South Korean game distributor in the South Korean market, Cayenne said

It expects that the popularity of the Japanese game could bring monthly revenue of at least NT$30 million in the Taiwanese market, helping the company’s operations for the remainder of the year, Cayenne said.

Cayenne reported net income of NT$2.64 million for the first quarter, which swung back to profitable compared with net losses of NT$18.39 million over the same period last year, the company’s filing with the Taiwan Stock Exchange showed.

The company’s accumulative revenue totaled NT$160.33 million in the first five months, which contracted by 10.84 percent from the same period a year ago, the filing showed.

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