Kingsoft revenue grows 37% during Q1

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Kingsoft has reported a 37% increase in Q1 revenue (Image Auris / iStockPhoto)

Hong Kong listed software and cloud service provider Kingsoft has reported a 37% increase in revenue for the March quarter, largely as a result of strong growth in its cloud services segment.

The Chinese company reported revenue for the quarter of 1.73 billion yuan (HK$1.97 billion), and gross profit of 657.9 million yuan.

Cloud services revenue grew by 100% year-on-year to 839.3 million yuan, due in part to contract wins in enterprise cloud markets such as government, finance, game, and healthcare.

The company maintained its lead in the video sector, and embarked on a development strategy incorporating AI and edge cloud into its portfolio. In the financial sector, the company secured agreements with China Construction Bank and China Merchants Bank during the quarter.

Meanwhile revenue from office software and services grew 35% year-on-year to 287.6 million, mainly due to enterprise refresh cycles and rapid value added services growth. In March, the company launched WPS Office for Linux Professional for the government enterprise sector.

Revenue from online and mobile games reached 599.7 million for the quarter. Kingsoft established a professional league club for its flagship PC game JX Online III as part of its push into the e-sports sector.

“We saw a steady development momentum across all of our businesses in the first quarter of 2019. We continued to expand the influence of our JX IP, and are expecting to launch JX Online III mobile game in the second quarter,” Kingsoft chairman Jun Lei said.

“Kingsoft Cloud expanded its cooperation and service coverage in a continuous and steady way. Meanwhile, we launched WPS Office 2019 for Linux Professional and WPS Office for Mac in March and April respectively, and we are constantly looking for new and creative ways to improve customer experience in smart offices."

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