Changyou.com Q1 Profit Declines, Sees Q2 Revenue Below Estimates

(RTTNews) - Chinese online game developer and operator Changyou.com Ltd. (CYOU) Monday announced a first quarter net income attributable to the company of $32.29 million or $0.62 per share, down from $38.465 million or $0.74 per share. Earnings per ADS attributable to the company was $0.61.

On average, 5 analysts polled by Thomson Reuters expected the company to earn $0.58 per share. Analysts estimates usually exclude special items.

Revenue for the quarter declined 38 percent to $129.84 million from $208.68 million last year. However, revenues were in line with the company's guidance. Analysts were looking for $129.55 million. Online game and online advertising recorded decline for the quarter.

Jasmine Zhou, CFO of Changyou said, "We expect our second quarter results to be on par with the first quarter, and with the planned launches of the new games in the second half of the year, we expect our revenue to pick up in the third and the fourth quarters."

The company expects adjusted net income attributable to the company to be between $30 million and $35 million and adjusted income attributable to Changyou.com Limited per ADS to be between $0.56 and $0.65. Wall Street analysts are looking for $0.51 per share on revenue of $132.55 million.

Total revenues for the second quarter is expected to be between $120 million and $130 million, including online game revenues of $95 million to $105 million;

The company sees share-based compensation expense to be between $2.3 million and $2.7 million.