HONG KONG, Dec. 6, 2017 /PRNewswire/ — NetDragon Websoft Holdings Limited (‘NetDragon’ or the ‘Company’; Hong Kong Stock Code: 777), a global leader in building internet communities, today announced its financial results for the third quarter ended 30 September 2017. NetDragon’s management team will hold a conference call and webcast at 6:30pm Hong Kong time on 6 December 2017 to discuss the results and recent business developments.
Mr. Dejian Liu, Chairman of NetDragon, commented: “We are delighted that NetDragon recorded profitability for consecutive quarters, supported by the robust performance in both gaming and education businesses. The gaming business continued its outstanding performance in the third quarter on the back of our flagship game Eudemons Online that has reached another quarter of historical record-high revenue. Our mobile games also delivered phenomenal growth, with mobile gaming revenue increasing 124.1% year-over-year. The pocket versions of our two flagship IPs, Eudemons Online and Heroes Evolved, continued to perform exceptionally well during the quarter. Meanwhile, our pipeline of new games is stronger than ever, and for that we are confident in the growth trajectory of our gaming business going forward.”
“We are equally excited by the strong progress of our education business. We are pleased to announce that the installed user base of our flagship platform 101 Education PPT in China has reached our end-of-year target of one million K-12 teachers as of end of November. Our tender sales traction in China also reached a record quarter as we achieved RMB150 million of contracted sales in Q3 alone. Outside of China, our international business had another remarkable quarter as overseas revenue increased by 56.2% year-over-year, as a result of very strong growth in both the U.S. and emerging markets as Promethean further solidifies our global market share leadership in deployment of K-12 interactive classroom technologies.”
2017 Q3 Financial Highlights
Revenue was RMB1,060.6 million, representing a 52.7% increase year-over-year. Revenue from the gaming business was RMB440.2 million, representing 41.5% of the Company’s total revenue, registered a 53.6% increase year-over-year. Revenue from the education business was RMB595.9 million, representing 56.2% of the Company’s total revenue, registered a 51.9% increase year-over-year. Gross profit was RMB584.9 million, representing a 51.9% increase year-over-year. Core segmental profit from the gaming business was RMB179.1 million, representing a 123.5% increase year-over-year. Core segmental loss from the education business was RMB107.9 million, representing a 1.5% increase year-over-year Non-GAAP operating