China.com will spend 30 per cent of its 2006 revenue to market its online games.

The CEO of the Beijing-based provider of mobile value-added and Internet services and online games, Albert Lam, said yesterday: "Our online game business has not reached its peak and we expect it to keep growing rapidly in the next few years."

China.com's online game revenue increased 59 per cent in the first quarter of 2006, to reach HK$40 million, boosted mainly by the successful launch and operation of "Yulgang".

The second most popular multiplayer online role-playing game (MORPG) on the mainland in 2005, "Yulgang" had more than 330,000 peak concurrent and 22 million registered users in the first quarter of 2006, that is, a quarter-on-quarter increase of 27 per cent and 47 per cent, respectively.

China.com General Manager Chen Xiaowei said he wanted the company's online games turnover to exceed 31 per cent of the total in the second quarter of 2006, after it jumped 10 per cent over 2005 fourth quarter to reach 31 per cent in the last quarter.

The company will strengthen its portal business by globalizing its website and building it into one that especially suits well-educated professionals.

Chen said China.com had revamped its English channel to better facilitate information exchange and sharing between people living on and outside the mainland.

To serve the highly-educated professionals better, the company will start a new online programme called "The Real Show" this month, Chen said.

"It is a custom-made programme for them and our investment in it is estimated to reach HK$7.8 million, the biggest ever this year in the company's portal section," Chen added.

Recording gains in all its business sections, China.com saw its total revenue reach HK$130 million in the first quarter of 2006, up 72 per cent year-on-year and 11 per cent quarter-on-quarter.

And its net profit climbed to HK$8.5 million, up 51 per cent over the first quarter of 2005.

Driven by its strong performance in the first quarter, China.com's share price increased by 1.96 per cent to close at HK$0.52 yesterday.

(For more biz stories, please visit Industry Updates)