Changyou.com Limited reported unaudited consolidated earnings results for the second quarter ended June 30, 2016. For the quarter, the company reported total revenues of $129,160,000 compared to $202,154,000 a year ago. The year-over-year decrease was mainly due to the natural decline in revenues of older games, such as TLBB and TLBB 3D, and a decrease in Web game revenues upon the completion of the sale of the 7Road business during the third quarter of 2015. Operating profit was $29,143,000 compared to $45,067,000 a year ago. Income before income tax expense was $38,348,000 compared to $50,907,000 a year ago. Net income attributable to the company was of $32,934,000 or $0.62 per diluted ADS compared to $44,913,000 or $0.84 per diluted ADS a year ago. On non-GAAP basis, operating profit was $32,555,000 and net income attributable to company was $36,338,000 or $0.68 per diluted ADS compared to operating profit of $52,158,000 and net income attributable to company of $51,985,000 or $0.95 per diluted ADS a year ago. For the second quarter of 2016, on a yearly basis, the depreciation of the RMB against the U.S. dollar impacted its reported financial results. On a constant exchange rate basis, total revenues in the second quarter of 2016 would have been $9 million higher, down 32% instead of 36% year-over-year. Operating cash flow for the second quarter of 2016 was a net inflow of $62 million.

For the third quarter of 2016, the company expects total revenues to be between $125 million and $135 million, including online game revenues of $90 million to $100 million; non-GAAP net income attributable to the company to be between $25 million and $30 million; non-GAAP fully diluted net income attributable to the company per ADS to be between $0.47 and $0.56; and a tax expense adjustment to be made in the third quarter, which may lead to increases in non-GAAP net income attributable to the company and Non-GAAP fully diluted net income per ADS attributable to the company from its current projections.