KongZhong Q3 2015 total revenues down 19%

KongZhong Corporation (NASDAQ: KZ) said its total revenues for the third quarter of 2015 were USD38.58 million, an 18.9 percent decline from the second quarter of 2015 and a 35.3 percent decline from the same period last year.

Internet Game revenues were USD 23.74 million in the third quarter of 2015, a decrease of 2.9 percent from the second quarter of 2015. Although World of Tanks demonstrated continued stable performance, user activity and purchases in Guild Wars 2 and World of Warplanes continued to moderate during the period.

For the third quarter of 2015, mainland China online game operations achieved average monthly active users of 1.8 million and aggregated monthly paying accounts of 307,000 with monthly average revenue per user of RMB160.

Internet game revenues made up 61.5 percent of total revenues in the third quarter of 2015.

Total mobile game revenues were USD 2.68 million, a 71.6 percent decrease from the second quarter of 2015 and a 76.3 percent decrease from the same period last year. The sharp reduction in mobile game revenues was due to the shorter life cycle and high churn of recently launched smartphone games and the company´s recent pivot to concentrate mobile game development and licensing towards primarily military genre mobile games to bolster the War Saga brand.

Total mobile game revenues made up 7.0 percent of total revenues in the third quarter of 2015.

Total gross profit for the third quarter of 2015 was USD16.90 million, a 15.2 percent decrease from Non-GAAP gross profit in the second quarter of 2015 and a 29.1 percent decrease from the same period last year.

KongZhong Corporation is a leading online game developer and operator in China.