Not operating the World of Warcraft online game in China has hit The9 with a CNY79.2 million net loss in the second quarter ended June 30, 2009.

Zhu Jun, chairman and CEO of The9 stated, "After the cease of the WoW operation upon expiration of the license, our revenue has been significantly reduced. However, we believe we will soon recover from the challenging time and continue to leverage the tremendous growth of China's online game market."

The struggling online game company announced its unaudited financial results for the quarters ended March 31, and June 30, 2009. Net revenues for the first quarter of 2009 increased by 4% quarter-over-quarter and decreased by 3% year-over-year to CNY426.2 million. Net loss for the first quarter was CNY46.8 million, a 70% decrease from net loss of CNY158.3 million in the fourth quarter of 2008, and a decrease in earnings of CNY122.4 million compared with the net income of CNY75.6 million in the first quarter of 2008.

Net revenues for the second quarter of 2009 decreased by 32% quarter-over-quarter and decreased by 37% year-over-year to CNY287.9 million. Net loss for the second quarter of 2009 was CNY79.2 million, a 69% increase from net loss of CNY46.8 million in the first quarter of 2009 and a decrease in earnings of CNY178.2 million compared with net income of CNY99.0 million in the second quarter of 2008.

The net loss for the first half 2009 was mainly due to decrease in revenue from World of Warcraft, which expired on June 7, 2009, and various write-off and impairment relating to WoW made in the first half 2009. The9's rival Netease.com now has the rights from Blizzard Entertainment to operate WoW in China.