Sohu.com (SOHU)

Revenue

Total online game revenues for the third quarter of 2009 increased 3% quarter-on-quarter and 26% year-on-year to US$68.7 million.

Revenues from game operations for the third quarter of 2009 increased 3% quarter-on-quarter and 29% year-on-year to US$66.9 million. The increases were mainly due to increased popularity of Changyou’s flagship game, TLBB.

Overseas licensing revenues for the third quarter of 2009 increased 9% quarter-on-quarter and decreased 33% year-on-year to US$1.8 million. The sequential increase was mainly due to increased momentum of TLBB in Vietnam and Malaysia. The year-on-year decrease was largely the result of greater competition in mature online game markets abroad.

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Ms. Carol Yu, Co-President and CFO of Sohu.com, commented, “Our complementary businesses generated record total revenues for the tenth out of the past eleven quarters as our leading mainstream media platform captures increasing market share. By remaining focused on our key strategies, we have been able to maintain our growth momentum over the first nine months of 2009, an impressive accomplishment given our very strong results in 2008 due to the Beijing Olympic Games. We are confident in the future of our business and we continue to actively pursue effective ways to leverage our strong balance sheet and leading market position to provide additional long-term value to our shareholders.”

Revenue

Revenues from game operations for the second quarter of 2009 increased 9% quarter-on-quarter and 42% year-on-year to US$64.9 million. The increases were mainly due to user base expansion and higher APA, which reflect the growing popularity of Changyou’s online games.

Overseas licensing revenues for the second quarter of 2009 decreased 27% quarter-on-quarter and 23% year-on-year to US$1.7 million. The decreases were largely the result of greater competition in mature overseas markets.

Ms. Carol Yu, co-president and CFO of Sohu.com, commented, “This quarter was the ninth quarter out of the past ten quarters we achieved record total revenues, a significant achievement given the challenging global economic backdrop over the past several months. We were especially encouraged to see modest growth in our brand advertising business despite the weak economy. In addition, Changyou, our MMORPG subsidiary and one of our crowning achievements, again posted record revenue growth. Our results this quarter demonstrate our ability to achieve balanced growth across different parts of our business, which is a testament to the execution capabilities of our knowledgeable and experienced management team.”

Revenue

Revenues from game operations increased 5% quarter-on-quarter and 46% year-on-year to US$59.3 million. The increases were mainly due to the higher APA, which reflects the growing popularity of Changyou’s online games. Revenues from game operations include those generated from TLBB, which increased 6% quarter-on-quarter and 41% year-on-year to US$54.4 million and revenues for Blade Online, which increased 2% quarter-on-quarter and 139% year-on-year to US$5.0 million. Overseas licensing revenues increased 14% quarter-on-quarter and 493% year-on-year to US$2.3 million. Changyou began licensing TLBB to Vietnam in August 2007, and Hong Kong and Taiwan in April 2008. The quarter-on-quarter increase was primarily due to the successful launch and user acceptance of expansion packs in overseas markets during the first quarter of 2009.

Ms. Carol Yu, Co-President and CFO of Sohu.com, commented, “Our first quarter results showcase Sohu’s ability to deliver impressive year-over-year growth despite widespread weakness in the economy. I would also like to take this opportunity to thank all Sohu shareholders and the investment community for their support in the Changyou IPO process. As Changyou’s majority shareholder, holding approximately 68.5% of the total outstanding equity interest and controlling approximately 80.8% of the total voting power, Sohu will continue to provide strong leadership and support to bolster Changyou’s sharpened focus on the MMORPG business, and be a long term beneficiary of Changyou’s performance in years to come.”