logo
Share SHARE
FONT-SIZE Plus   Neg

Shanda Games Profit Down - Update

Shanda Games Ltd (GAME) Monday said its third-quarter profit dropped 26 percent, hurt mainly by lower revenues and higher costs as the company increased expenses on game developments and marketing.

The Hong Kong-based company's net income for the quarter dropped to 253.9 million yuan or $40.0 million, from 342.6 million or $53.9 million last year. Earnings per American depositary share declined to 0.92 yuan or $0.15, from 1.20 or $0.19 last year.

On an adjusted basis, earnings per ADS were 1.04 yuan or $0.17, down from 1.42 or $0.22 last year.

Analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

The online game developer's revenue for the third quarter dropped to 1.081 billion yuan or $170.4 million, from 1.353 billion yuan or $212.9 million last year. Analysts estimated revenues of $171.18 million for the quarter.

Net revenues from online games operated in China slipped 20.7 percent to 1.015 billion yuan or $160.1 million, due mainly to a decline in revenue from "AION" and "Woool.

Other revenues, which primarily represent overseas revenues generated from game licensing, game operations, and advertising, decreased to 65.4 million yuan or $10.3 million from, 72.1 million yuan or $11.4 million last year.

Online game revenues generated in China contributed 93.9 percent of total revenues, while other revenues accounted for 6.1 percent.

Gross margin for the period improved to 63.4 percent from 61.3 percent last year. Operating margin dropped to 26.0 percent from 26.7 percent last year, as product development and marketing costs rose.

Product development expenses represented 14.9 percent of revenues, up from 13.7 percent last year. Sales and marketing costs, as a percent of revenues, rose to 14.1 percent from 12.0 percent last year.

GAME closed Monday's trading at $3.20, down $0.07 or 2.14%, on the Nasdaq.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Texas, the second largest state in the U.S., has four of the five fastest-growing cities in the U.S., according to new population estimates released Thursday by the U.S. Census Bureau for the twelve months up to July 1, 2016. Ten of the fifteen fastest growing large U.S. cities during that 12-month span were in the South, according to the Census Bureau. To book-lover's surprise, online retailer Amazon opened another bricks and mortar store in an upmarket shopping mall in New York. This is the seventh book store of Amazon. Ford Motor Co.'s former Chief Executive Officer Mark Fields, who was ousted in mid May as the company lost almost $25 billion in market value, could walk away with about $57.5 million worth payouts, Bloomberg reported.
comments powered by Disqus
Follow RTT