Chinese online games provider Shanda Games Limited (GAME: Quote), said Monday its first quarter profit rose 7.6 percent from last year, helped by double digit revenue growth. Moving forward, Shanda Games said prospects appear to be bright.
Shanda Games reported first quarter net income to common shares of 336.8 million yuan or $53.4 million, up from 313 million yuan last year. On a per American Depositary Share, or ADS basis, earnings rose to 1.20 yuan or $0.19 from 1.10 yuan a year ago.
Excluding items, adjusted earnings for the quarter were 381.8 million yuan or $60.7 million, compared to 368.5 million yuan in the prior year. Adjusted earnings per ADS were 1.36 yuan or $0.22, compared to 1.30 yuan last year.
On average, 8 analysts polled by Thomson Reuters expected earnings of $0.20 per ADS for the quarter. Analysts' estimates typically exclude special items.
Net revenues for the quarter grew about 11 percent to 1.39 billion yuan or $220.7 million from 1.25 billion yuan in the same period last year. Analysts estimated revenue of $220.96 million.
Online game revenues generated in China rose 8.7 percent from last year and accounted for most of the business. Other revenues surged nearly 50 percent year-over-year.
"The first quarter of 2012 marked the first full year since we began implementing our 'All-Star, All-Platform and All-Region' strategy," said CEO Alan Tan.
"During this time, we have made important progress developing the key products and titles that have enabled us to not only maintain our position as China's leading online game company, but also expand further and deeper into new countries and territories.
The company additionally said its Board has approved repurchase of up to $100 million worth of its ADS.
GAME closed Monday on the Nasdaq at $4.05, up $0.01 or 0.25%.
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by RTT Staff Writer
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