Things continue to look up for Chinese gaming upstart The9
Wednesday night's report covering the company's quarter ended in March pretty much sums up the transformation process. A year ago, The9 was a speck on the scene. It was saddled with struggling Korean game maker Webzen
What a difference a year makes. Thanks to its deal with Vivendi's
That may pale compared to the 1.3 million concurrent players that NetEase
Ultimately, The9 earned $0.30 a share on $26.5 million in revenue this past quarter. The9 may be a one-trick pony, with World of Warcraft accounting for all but $0.3 million of that top-line sum, but that's one heckuva trick.
Online gaming is big in China, and it's only going to get more prolific as disposable income trickles higher. After all, NetEase was recommended to Rule Breakers newsletter service subscribers a little over a year ago, and the shares have gone on to soar 67.7% higher.
Trading in The9 has been a bit more lethargic since it went public in 2004, but that may change if the game's popularity continues to grow. Production didn't grow sequentially, and that was disheartening, but it's more important for The9 to maintain its presence as it uses its newfound popularity to introduce another hit game or two.
The only thing better than a one-trick pony is a two-trick stallion.
Longtime Fool contributor Rick Munarriz believes in the sector, but he does not own shares in any of the companies mentioned in this story.The Fool has a disclosure policy. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.