Chinese online games provider Shanda Games Limited (GAME) on Thursday reported a 19 percent increase in profit for the third quarter, reflecting higher sales and margins.
The company's net income for the third quarter was 342.6 million yuan or $53.9 million, up from 289.0 million yuan in the year-ago period.
On a per share basis, earnings rose to 0.60 yuan or $0.09 from 0.51 yuan in the prior-year period. Earnings per ADS rose to 1.20 yuan or $0.19 from 1.02 yuan in the third quarter of 2010.
Adjusted net income rose to 403.5 million or $63.5 million from 333.8 million yuan in the prior-year quarter, while adjusted earnings per share increased to 0.71 yuan or $0.11 from 0.59 yuan a year ago.
Adjusted earnings per ADS were 1.42 yuan or $0.22, up from 1.18 yuan in the year-ago quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenues for the quarter grew 23 percent to 1.35 billion yuan or $212.9 million from 1.096 billion yuan in the same period last year. Analysts had a consensus revenue estimate for the quarter of $210.90 million.
Online game revenues generated in China and other revenues accounted for 94.7 percent and 5.3 percent of total net revenues, respectively.
Net revenues from online games generated in China rose 22.2 percent to 1.28 billion yuan or $201.5 million. Other revenues, which primarily represent net overseas revenues generated from game licensing, game operations, and advertising, surged 49.3 percent to 72.1 million yuan or $11.4 million in the quarter.
Gross margin for the quarter was 61.3 percent in the quarter, up from 59.0 percent in the same period last year.
GAME closed Thursday's trading at $4.46, down $0.36 or 7.47 percent on a volume of 461,175 shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.