Chinese online game operator The9 Ltd., has reported lower first quarter net income of 58.8 million yuan (USD 7.3 million), a 14 percent decrease from 68.3 million (USD 8.5 million) in the fourth quarter. The company said its growth stumbled from its previous quarter due to Chinese New Year holiday, sending the shares down more than 13 percent.
Excluding the impact of 13.4 million yaun (USD 1.7 million) financial subsidy received from the local government and the 6.7 million yaun (USD 0.8 million) gain from investment disposal of 21 percent equity interest in 9Webzen in the fourth quarter of 2005, net income for the first quarter of 2006 increased 22 percent sequentially in the first quarter of 2006.
Net revenue for the quarter were 212.1 million yuan (USD 26.5 million), which remained stable from the previous quarter and grew substantially from the same period of last year.
Hannah Lee, Vice President and Chief Financial Officer reassured, "We have regained user growth momentum shortly after the Chinese New Year holiday."
The9’s is popular for its "World of Warcraft" game.
China is one of the world's largest and fastest growing online game markets, worth an estimated USD 587 million in 2005 and expected to grow to USD 886 million this year, according to DBS.
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