Giant Interactive Group, Inc. (GA)
Q4 2012 Earnings Conference Call
February 26, 2013 8:00 p.m. EST
Rich Chiang – IR Director
Jazy Zhang – CFO
Wei Liu – President
Xue Feng Ji – VP of R&D
Timothy Chan – Morgan Stanley
Eddie Leung – Merrill Lynch
Dick Wei – J.P. Morgan
Muzhi Li – Citigroup
Martin Bao – CICC
Andy Yeung – Oppenheimer
Jialong Shi – CLSA
Previous Statements by GA
» Giant Interactive Group Management Discusses Q3 2012 Results - Earnings Call Transcript
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After the presentation, there will be a question-and-answer session. Please follow the instructions given at that time if you would like to ask a question.
Now I would like to transfer the call to the moderator, Mr. Rich Chiang, Investor Relations Director of Giant Interactive.
Good morning, ladies and gentlemen. Welcome to the fourth quarter and full year 2012 earnings conference call for Giant Interactive Group. With me today are Ms. Wei Liu, President; Ms. Jazy Zhang, Chief Financial Officer; and Mr. Xue Feng Ji, Vice President of Research and Development.
As we proceed through our prepared remarks, we will refer to our results presentation which can be downloaded from our website at www.ga-me.com. Following the remarks, Ms. Liu, Ms. Zhang and Mr. Ji will be happy to take your questions.
Before we continue, I would like to remind you that statements on this call that are not strictly historical in nature constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminologies such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements and, among others, include statements regarding the company’s expectation for sequential growth in 2013, the ability of the company to introduce new game types to maintain its growth rate and profitability that exceed industry average, the ability of the company to successfully diversify its revenues, the sustained progress and performance of ZT Online 2 after the launch of its first new expansion pack and micro-client version, sustained growth and diversity of the company’s user base after launch, distribution and testing of pipeline games including MMO games that are part of the company’s portfolio diversification strategy, the ability for World of Xianxia to become another blockbuster MMORPG of the company, the ability of the company to implement its strategy in connection with web games, such as expected commercial launches of Genesis of the Empire and The Sky, and the timetable for testing and releasing new games and expansion packs in the company’s game pipeline.
These forward-looking statements are not historical facts, but instead represent only our belief regarding future events, many of which by their nature are inherently uncertain outside of our control. Our actual results and financial condition and other circumstances may differ possibly materially from the anticipated results and financial condition indicated in these forward-looking statements.
Among the factors that could cause our actual results to differ from what we currently anticipate may include a deterioration in the performance of ZT Online 1 series and ZT Online 2, unexpected delays in developing expansion packs or in the timetable for testing and launching our games, our dependence on ZT Online 1 series and ZT Online 2 which currently account for the majority of our historical net revenues, failure of our web games, MMO pipeline games, first FPS game or other diversification or distribution efforts to grow as successful as expected, our uncertainties with respect to the PRC legal and regulatory environments and the volatility of the markets in which we operate.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of Giant to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include but are not limited to the risks discussed in filings with the Securities and Exchange Commission including our Annual Report on Form 20-F filed on April 23, 2012 and in our amended annual report on Form 20-F/A for the fiscal year 2011 as filed with the Securities and Exchange Commission on September 26, 2012, both of which are available on the Securities and Exchange Commission website at www.sec.gov.
All forward-looking statements are qualified by this cautionary statement, and Giant undertakes no obligation to revise or update this information to reflect events or circumstances after today.
In addition, please note that references in the presentation to dollars refer to US dollars.
Now, I would like to turn the call over to our CFO, Jazy Zhang. Jazy?
Thank you, Rich. Good morning and good evening, everyone. I will begin by reading the opening remarks from our President, Liu.
2012 marked another year of strong growth for Giant as we recorded a 20% year-over-year growth in net revenue. The fourth quarter of 2012 also marked a milestone as we were able to acknowledge 12 consecutive quarters of sequential revenue growth. In 2012, our flagship title ZT Online 2 continued to gain traction and we continued to provide new content for this increasingly popular game. We have also launched the micro-client version of ZT Online 2 which have performed well by attracting new players on Qihoo360's platform and contributing incremental revenue.