Giant Interactive's Revenues Decline 20% QoQ

Giant Interactive Group Inc. (NYSE: GA) said net revenue for the third quarter 2009 was RMB290.2 million (US$42.5 million), representing a 20.3% decrease from RMB364.1 million in the second quarter 2009 and a 9.4% increase from RMB265.2 million in the third quarter 2008.

ACU (average concurrent user) for online games in the third quarter 2009 was 426,000, representing a 6.0% sequential decrease and a 21.6% decrease compared to the third quarter 2008. PCU (peak concurrent user) for online games in the third quarter 2009 was 1,281,000, representing an 11.1% sequential decrease and a 18.9% decrease compared to the third quarter 2008. ARPU for online games in the third quarter 2009 decreased 13.5% sequentially and 8.1% year-over-year to RMB259.4.

APA for online games in the third quarter 2009 decreased 7.9% sequentially and increased 18.3% year-over-year to 1,108,000. The declines in operating metrics were due to lower usage and spending caused by the cancellation of the Treasure Box feature in ZT Online.

Net income was RMB197.7 million (US$29.0 million), a decrease of 14.7% compared to RMB231.9 million in the second quarter 2009 and a year-over-year increase of 47.5% from RMB134.1 million. The sequential decrease was mainly caused by the sequential fall in revenue. The year-over-year increase was attributable to the recovery of revenue generated by ZT Online after a strategic adjustment in monetization structure, and tightened controls in operating expenses.