Boston, MA, 03/10/2014 – Sky-mobi Ltd (ADR) (NASDAQ:MOBI) recently announced its Q313 results, which witnessed a boost in the net profit to $0.8 million, a 26.32% increase from its previous year’s quarter. The company observed an increase in the Smart phone revenue segment amounting to $10.7 million, representing 56.4% of its total revenue. The total revenues were $19 million, 1.2% drop from that of the previous year’s quarter. The gross margins stood at 23.6% compared to 23.3% in the second quarter 2014 and 34.4% in its previous year’s quarter. The basic EPS stood at $0.03 per ADS and 0.02RMB per equity share. Sky-Mobi expects Q42014 total revenues to be in the range of $14.69 Million to $17.14 million.
Increasing Customer Base: The reflection of hike in the share prices could also be due to its rising number of customers, whose December mobile users stood at 380,000/ day signalling more than ten million new users a month. Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is tied up to Maopao App store, and its smart phone related income is drawn from downloads and app purchases in these store. Maopao app store, is pre installed in all China Mobile and currently has 110 million users, expects to double in the current fiscal year, and this makes the future revenue prospects of Sky-mobi Ltd (ADR) (NASDAQ:MOBI) to grow higher.
Faster Transition: Sky-Mobi earlier were key player in the feature phone segment, and due to the emergence of Smart phone and low cost phones, the company’s revenue reduced. A quicker realization and recent transition to new smart phone platform has zoomed its business base off late which is also witnessed in the recent quarterly results.
Industry Outlook: Researchers expect 94% growth to $3.14 billion in China Mobile Gaming market in the FY2014 and analysts feel that Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is well positioned following the entry into Smart Phone Mobile segment.