Tuesday, online game developer Giant Interactive Group, Inc. (GA) said that its profit for the third quarter increased from the previous year quarter.
China-based Giant recorded net income attributable to the company's shareholders for the third quarter of RMB 197.7 million or US$29.0 million, compared to RMB 134.1 million in the year-ago quarter. On per share basis, net income was RMB 0.84 or US$0.12 per American Depositary Share or ADS, compared to RMB0.54 per ADS in the same quarter last year.
Excluding charges, net income attributable to the company's shareholders was RMB 205.4 million or US$30.1 million, compared to RMB 148.2 million in the third quarter 2008. Excluding charges earnings per ADS were RMB 0.88 or US$0.13, compared to RMB 0.59 in the third quarter of last year.
Total net revenue for the quarter was RMB290.2 million or US$42.5 million, compared to RMB212.5 million in the third quarter 2008. in the prior-year quarter.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.12 per share, on revenues of $41.57 million for the quarter. Analysts estimates typically exclude special items.
Yuzhu Shi, Giant's Chairman and Chief Executive Officer commented, "While revenue and user levels of our flagship game were adversely impacted in the quarter by our decision to cancel the Treasure Box feature, we remain optimistic that expansion packs, such as the newly deployed Parenthood Simulation and Unparalleled Martial Arts, coupled with regular feature updates, will ultimately increase the vitality and sustainability of our ZT Online series."
Looking forward, for the fourth quarter 2009, the company expects that its flagship ZT Online series will continue to be impacted by changes made to its monetization structure during the third quarter. In addition, the company expects continued revenue pressure into the fourth quarter of 2009, while contributions from the new games are expected to ramp up in the first half of 2010.
GA closed Tuesday's regular trading at $6.82 down $0.03 or 0.44% on a volume of 0.645 million shares on the NYSE.
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