Friday, February 27, 2009

KongZhong Rocks On

Major Beijing-based mobile content aggregator/publisher KongZhong (KONG) recently released an unaudited 2008 earnings statement.

Revs = $96.69mil a 31% increase over 2007
(Value added services = $86.91mil, mobile games = $7.74mil & mobile advertising $2.04mil)

Net Loss = $20.66mil...the company would have been profitable without hefty write down of goodwill (popular theme)

Subsequently it was reported that the company had taken a $6.8mil investment from Nokia Growth Partners. Smart move for Nokia (NOK) with a company that is becoming the dominant content player in market on the verge of a 3G roll out that has proven impossible to penetrate without a local partner.

Overall KongZhong's stock price has held up really well during the current economic meltdown (particularly compared to it's competition) and it's market cap is an impressive $179.22mil (2x Buongiorno (BNG) which has 4x the Rev).

I currently have these guys as a Top10 mobile content player worldwide, sitting between Thumbplay and Gameloft...anybody want to challenge this?

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