This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Perfect World Leans on Overseas Markets

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- Perfect World (PWRD) recently noted in its latest earnings impressive revenue growth that was driven primarily by its international gaming operations.

While its user base in China has shrunk over the last couple of years, dragging down its overall revenue growth, its international gaming revenue has nearly doubled in 2011, according to our estimates.

Check out our complete analysis of Perfect World here.

Perfect World operates localized versions of its games in international markets such as those in Europe, North America and Japan through its partners. It licenses its games to publishers in other markets where its offerings compete with games such as "World of Warcraft" by Activision Blizzard (ATVI) and "Warhammer Online" by Electronic Arts (EA).

Perfect World announced some of the latest developments related to its international gaming operations following its earnings release. It has made a series of significant launches, which should drive its revenue in the coming years.

It licensed one of its most popular games, "Battle of the Immortals", to Mentez LLC in Brazil. It also launched "Forsaken World" in Indonesia through its partner Datarindo Fortuna and unveiled "Blacklight Retribution," a new game developed by its partner Zombie Studios in North America.

Going forward, we expect Perfect World to focus more on its international gaming operations and overseas gaming licensing to drive revenue growth as its Chinese game operations have gradually taken a back seat.

Perfect World's market price jumped nearly 30% after its fourth-quarter earnings report, which supports our $23 Trefis price estimate , which now stands around 45% above the market price.

Click here to find out how a company's products impact its stock price at Trefis.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.82 -2.10%
FB $116.57 -0.14%
GOOG $691.99 0.14%
TSLA $244.93 -1.10%
YHOO $36.42 -0.46%


Chart of I:DJI
DOW 17,716.01 -114.75 -0.64%
S&P 500 2,064.79 -11.02 -0.53%
NASDAQ 4,778.5080 -26.7830 -0.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs