Changyou.com Q4 Net Profit Falls - Quick Facts

(RTTNews) - Changyou.com Ltd. (CYOU), an online game developer and operator in China, reported a drop in its fourth-quarter net income attributable to the company to $43.0 million, or $0.81 per ADS, from $75.16 million, or $1.41 per ADS, a year before. On a non-GAAP basis, net income attributable to Changyou.com Ltd. totaled $43.3 million, or $0.82 per ADS.

On average, 6 analysts polled by Thomson Reuters expected earnings per share of $0.38 for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues were $194.9 million in the recent quarter, compared with $173.54 million last year, a 12% increase year-over-year, and were in line with the company's guidance. Analysts estimated revenues of $195.79 million for the quarter. Online game revenues increased 9% year-on-year to $172.0 million, and online advertising revenues grew 35% year-on-year to $16.9 million, the company said.

For the first quarter of 2014, non-GAAP net loss attributable to Changyou.com Ltd. is expected to lie between $16 million and $22 million, or between $0.30 and $0.42 per ADS. Total revenues are anticipated to be between $174 million and $180 million, including online game revenues of $160 million - $165 million and online advertising revenues of $8 million - $9 million. Analysts project first-quarter earnings per share of $1.00 on $198.79 million revenue.

Separately, Changyou announced the resignation of its Chief Financial Officer, Alex Ho, who is leaving his position to start his own business. His resignation is effective March 4, 2014, after the firm files its annual report on Form 20-F for 2013. Meanwhile, Erin Sheng, currently finance director at Changyou, would assume the role of interim CFO following Ho's departure. Changyou said it is in the process of searching for a permanent CFO.