IR update Aug 20 2014 - Printable Version

China Telecom Adopts NQ Mobile™ vLife Technology for Mobile Cloud Platform

Interactive wallpaper user interface selected for ability to effectively promote downloads of applications and games

BEIJING and DALLAS, Aug. 20, 2014 /PRNewswire/ -- NQ Mobile (NYSE: NQ), a leading global provider of mobile Internet services, today announced a partnership with China Telecom that will bring NQ Mobile's vLife technology to China Telecom's "E Surfing" product. Under terms of the agreement, vLife will power the user interface for the mobile cloud platform, enabling China Telecom to present dynamic content, recommendations and promotions across video wallpapers, lock screen wallpapers and theme galleries.

China Telecom launched E Surfing to meet increasing demand for converged information services. The mobile cloud platform offers users a unified experience via website and mobile client. Combining the functionality of a mobile desktop along with data management, an app store, security protection and utility applications, the platform has been rapidly adopted, achieving 200,000 downloads per day.

NQ Mobile's vLife interactive wallpaper is a popular promotional tool in the Chinese market, with frequent use by film studios in support of major motion picture releases. The technology also provides the basis of NQ Live, the unique and engaging platform for real-time content and application experiences. NQ Live is available through manufacturers including ZTE, Lenovo and Huawei and is powering the next generation of Sprint ID, known as Sprint Live.

Today, we announced that China Telecom is adopting vLife as a core technology in its Mobile Cloud Platform, an important deal for NQ Mobile and the rollout of our platform strategy.

China Telecom will be using vLife to power the user interface of their innovative platform that combines the functionality of a mobile desktop with data management, an app store, security protection and utility applications. By incorporating vLife interactive wallpaper and dynamic home screen capabilities, China Telecom can more effectively engage users with recommendations and promotions for games, apps and other content across video wallpapers, lock screen wallpapers and theme galleries. As cited in the press release, China Telecom is seeing rapid adoption of the platform as indicated by strong daily downloads.

NQ Mobile’s deal with China Telecom closely follows several other notable partnerships with industry leaders for vLife and NQ Live, all serving to validate the strength of our platform strategy.

While we provided an initial glimpse into the rollout of NQ Live in April during our Q4 and Year End Conference Call, we wanted to take this opportunity to provide you with an update on operating and user metrics for the platform. As of the beginning of August, we are seeing more than 13 million monthly active users (MAU) and over 4 million daily active users (DAU). These metrics show significant growth over the 8 million MAU and 2 million DAU reported in April. Additionally, we have now shipped NQ Live on more than 75 million devices, more than double the 35 million devices cited in our previous update.

These user metrics, which include only those users who are engaging with vLife/NQ Live as a current wallpaper or lock screen, have exceeded our expectations. Energized by this rapid success, we continue to focus on driving new partnerships while growing users and traffic.

While it is still very early in our rollout, we are also pleased with the engagement trends we are seeing with some of the initial devices. For Sprint Music Live, we are seeing that 39% of active users engage with the full screen experience. For Sprint Fit Live, which was just recently launched, more than half (54%) of users who have the experience available to them actively engage with it.

The NQ Live platform is very important to our overall platform strategy and we look forward to providing additional updates on our progress in the future.

We encourage you to review our previous IR blog posts and press release for our partnership and product announcements associated with the NQ Live platform and vLife:

Until the next update, please e-mail questions to investors@nq.com. Please note that e-mail is preferred for your questions and comments.