Changyou.com Limited (NASDAQ:CYOU)

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Fourth Quarter 2019 Financial Results Total revenue was US$135 million , an increase of 35% year-over-year and 22% quarter-over-quarter,...
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Fourth Quarter 2018 Financial Results

  • Total revenue[1] was US$118 million, a decrease of 18% year-over-year and flat quarter-over-quarter, in line with the Company's guidance.
  • Non-GAAP[4] net income attributable to Changyou.com Limited was US$11 million[2], compared with net income of US$34 million in the fourth quarter of 2017 and net income of US$54 million[3] in the third quarter of 2018.

Mr. Dewen Chen, CEO, commented, "In 2018, we stayed focused on the development of high-end mobile games. We carefully reviewed our previous experience in mobile game development and made a number of changes that should help lay a solid foundation for producing hit games in the future. For 2019, we will continue to execute our core strategy of "Top Games" and focus on greatly improving our R&D capabilities and efficiencies. Leveraging our cumulative knowledge and innovations, we believe we are well-positioned to once again roll out new blockbusters."

Mr. Qing Wei, Chief Games Development Officer, added, "We were happy to report that Legacy TLBB Mobile turned in a solid performance in 2018. This is mainly due to the continuous improvements that we make to both the content and gameplay of the game as we continually focus on maximizing the longevity of the franchise. During the quarter, we launched a new expansion pack that included a new clan and new gameplay, both of which received positive feedback from players. For the first quarter and full year 2019, we will continue to update the game content and make further optimizations to ensure user retention and maximize the longevity of the game."

Mr. Yaobin Wang, CFO of Changyou, added, "Excluding the impairment charges related to the 17173.com Website business, both total revenue and non-GAAP net income performed well for the quarter, both in line with our guidance. For the full year 2018, we maintained solid revenue contribution from our core existing games, including TLBB PC, by continually implementing proactive and effective operational adjustments, which enabled us to achieve solid financial performance amid a rapidly changing industry environment in 2018."

Business Outlook

For the first quarter of 2019, Changyou expects:

Total revenue to be between US$105 million and US$115 million, including online game revenue of US$80 million to US$90 million;
Non-GAAP net income attributable to Chanyou.com Limited to be between US$23 million and US$28 million, and non-GAAP net income per fully-diluted ADS to be between US$0.43 and US$0.52. Share-based compensation expense to be around US$1 million, assuming no new grants of share-based awards. Taking into account the elimination of the impact of these share-based awards, GAAP net income attributable to Changyou.com Limited to be between US$22 million and US$27 million, and GAAP net income per fully-diluted ADS to be between US$0.41 and US$0.50.
For the first quarter of 2019 guidance, the Company has adopted a presumed exchange rate of RMB6.90 = US$1.00, as compared with the actual exchange rate of approximately RMB6.36 = US$1.00 for the first quarter of 2018, and RMB6.91 = US$1.00 for the fourth quarter of 2018.

Web site: http://www.changyou.com/en/

Last updated February 1, 2019