The9 Reports Net Income Of $14.5M In Q3

Chinese online game operator The9 Limited (Nasdaq: NCTY) announced third quarter net revenues of $60.2 million, up 29.3% year-on-year and down 10.2% quarter-on-quarter, after market close on Monday. The9 recorded net income of $14.5 million, up 157.6% from the third quarter of 2007 and down 15.1% from the second quarter of 2008.

The company attributed $55 million of third quarter revenue to the operation of subscription-based games, an increase of 34% from last year and down 10% from last quarter. Revenue from item-based games was up 4% year-on-year and down 12% quarter-on-quarter to $4.9 million in the third quarter. The9 attributed annual growth to higher concurrent user levels and said sequential declines were due to summer vacation, which the company said broke up game guilds, and the Beijing Olympics.

The9 is developing five new games including "Warriors of Fate Online" which has entered closed beta testing in Nantong, Jiangsu province.