Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Shanda Games Profit Down - Update

RELATED NEWS
Trade GAME now with 

Shanda Games Ltd (GAME: Quote) 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.

Register
To receive FREE breaking news email alerts for Shanda Games Ltd. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Specialty drugmaker Horizon Pharma plc (HZNP) on Friday managed to redomicile itself as an entity incorporated in Ireland following the completion of its $660 million acquisition of Vidara Therapeutics International plc. The deal will help it avoid paying the high rate of U.S. corporate taxes. The... Stocks showed a lack of direction over the course of the trading day on Friday after failing to sustain an initial upward move. Despite the choppy trading, the Dow once again managed to end the session at a new record closing high. The major averages turned in a mixed performance on the day. President Barack Obama delivered a statement Thursday evening thanking members of Congress for voting to approve legislation granting the U.S. military the authority to train and arm moderate Syrian rebels fighting against the terrorist group known as the Islamic State.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.