- ChinaWirelessNews.com - http://www.chinawirelessnews.com -

KongZhong Lifts Wireless Services Revenue In China

Chinese wireless value-added services firm KongZhong Corporation has announced its unaudited second quarter 2009 financial results.

Total revenues for the second quarter of 2009 increased 37% year-over-year and increased 9% quarter-over-quarter to USD32.3 million. Net income in the quarter was USD3.55 million, a 41% increase compared with the first quarter of 2009 net income of USD2.52 million.

Wireless value-added services revenues in the second quarter of 2009 increased 10% year-on-year and increased 1% sequentially to USD23.93 million. Revenues from 2.5G services accounted for approximately 21% of total WVAS revenues and revenues from 2G services represented the remaining 79% in the second quarter of 2009. Total mobile game revenues in the second quarter of 2009 were USD6.8 million, a 368% increase from the same period last year and a 38% increase sequentially.

Total gross profit was USD16.55 million in the second quarter of 2009, a 14% increase compared to the first quarter and a 55% increase compared to the same period last year.

Product development expenses in the second quarter of 2009 were USD4.37 million compared to USD4.85 million in the first quarter, or a 10% sequential decrease. Sales and marketing expenses in the second quarter of 2009 were USD4.45 million compared to USD4.08 million in the first quarter and USD5.08 million in the same period last year.

As of June 30, 2009, the company had USD132 million in cash and cash equivalents. The decrease of the cash balance in the second quarter of 2009 was mainly due to the USD9.55 million in cash used to repurchase shares as part of the company share repurchase plan during the second quarter.