Sohu Company has announced the financial report for the second quarter of 2022 with the highlight of making sales is Thien Long Bat Bo IP.
According to the financial report, the total revenue of Sohu (Changyou’s owner) in Q2 had a net profit of US$ 12 million, exceeding previous expectations. Sohu’s game revenue for the quarter was US$157 million, up 4% year-on-year, accounting for 80.5% of total revenue.
Not only revenue, game business is also Sohu’s main source of profit. According to the financial statements, Sohu’s non-GAAP gross margin in the second quarter was 73%, compared with 76% in the same period last year. In which, the gross margin of the brand advertising business was only 4%, compared to 28% in the same period last year, while the gross margin of the online game was 84%, compared to 89%. same period last year.
Sohu’s game business mainly consists of Changyou Company, which developed the 2007 Thien Long Bat Bo series, according to financial reports, the average monthly active user (MAU) of the PC version is 2 .3 million people, up 7% over the same period last year and up 13% over the previous month. According to the report, Thien Long Bat Bo’s launch on the WeGame platform has driven the growth of PC segment MAU and total quarterly active game loading users (APA).
In terms of mobile games, Changyou had 2 million average monthly active users in Q2, up 7% year-over-year but down 14% month-on-month. The year-over-year increase is mainly due to games that have launched in recent quarters. The consecutive decline is mainly due to the natural decline related to game content. In addition, Sohu also mentioned that the quarterly APA decline of mobile games is due to the natural decline of older games, including Thien Long Bat Bo PC and Thien Long Bat Bo Mobile.
Zhang Chaoyang, President and CEO of Sohu, said that the online game performed stably this quarter and that the revenue achieved was in line with expectations. “For Sohu Media and Sohu Video, we continue to produce and distribute reliable news and high-quality content, at the core of a mainstream media platform with competition and credibility. Based on the distinct advantage of Sohu products, we expand our live broadcasts to a broader field,” he emphasized.
Sohu’s financial data forecast for the third quarter shows that revenue from brand advertising will drop 17% to 26% year-on-year and increase month-on-month. Online gaming revenue will also drop 11% to 17% year-on-year.