Today the Chinese online games publisher Changyou announced its total earnings for 2009 as part of its earnings report for the fourth quarter of that year. Changyou generated $70.7 million in earnings for Q4 2009, for an annual revenue total of $267.6 million. The quarterly figure represents 3% growth quarter-over-quarter and 21% growth year-over-year. $68.6 million of the Q4 figure was generated by direct sales of virtual items in games, while the rest was generated by licensing fees. Changyou's 2009 annual earnings are a 33% increase from 2008 totals of $201.8 million.
Changyou's net income for the quarter was $38.9 million, up 34% from the previous year. Changyou's total number of registered user accounts also increased during Q4, up 8% quarter-over-quarter and 41% year-over-year. Peak concurrent users were 990,000, up 19% year-over-year and 9% quarter-over-quarter. Total number of paying accounts was unchanged from the prior quarter at 2.4 million, though this figure represents a 24% increase year-over-year.
Average revenue per user (ARPU) for Q4 2009 was RMB 196 ($28.70), up 3% quarter-over-quarter and 1% year-over-year. Changyou believes this ARPU is sustainable over the long term, as it is likely to be affordable for the average Chinese player. Going forward, the company expects to launch its Duke of Mount Deer title in 2010 following a currently ongoing closed beta. Changyou reports that 160 people are working to generate and release fresh content for Duke of Mount Deer on a weekly basis. Right now roughly 10,000 people are participating in the Duke of Mount Deer closed beta.
This week Changyou also intends to send its first 3D game, the Taiwanese Zhong Hua Ying Xiong, into closed beta after a lengthy period of localization and conversion. Changyou hopes to send the game into open beta in Q2 2010. A 2D licensed game, Da Hua Shui Hu, is currently in closed beta with the prospect of entering open beta in March 2010.
The busy 2010 release schedule means that Changyou is opting to keep its also-developing games Immortal Faith and Legend of Ancient World in prolonged closed beta, as the company tries to find time to schedule open beta periods for both games. Overall, the company expects to launch five new games in 2010 and double its R&D staff. As a consequence of this, Changyou expects its margins to be somewhat depressed in 2010, as it will take three to six months for each of the new online games to begin monetizing effectively.
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