Shanda Forecasts Higher Fourth-Quarter Sales on New Online Games, Upgrades
By Mark Lee - Nov 29, 2010 9:01 PM MT
Third-quarter net income fell to 289 million yuan from 366.6 million yuan a year earlier, the company said in a statement yesterday. That missed the 328.3 million yuan average of seven analyst estimates compiled by Bloomberg. Sales fell to 1.1 billion yuan from 1.27 billion yuan. Photographer: Nelson Ching/Bloomberg
Shanda Games Ltd., China’s second- biggest operator of online games, forecast fourth-quarter sales that exceeded analysts’ estimates after the company introduced new titles and upgrades to attract players.
Revenue in the three months to Dec. 31 may be 3 percent to 5 percent higher than the 1.1 billion yuan ($165 million) posted in the third quarter, Chief Executive Officer Alan Tan said in a conference call today. Shanda is expected to report 1.1 billion yuan in fourth-quarter sales, according to the average of nine analyst estimates compiled by Bloomberg.
Shanda is seeking to regain market share lost to Tencent Holdings Ltd. and NetEase.com Inc. with new games such as “Dragon Nest." Third-quarter profit fell a steeper-than- estimated 21 percent from a year earlier to 289 million yuan, Shanda reported yesterday.
The introduction of ‘‘Dragon Nest’’ in July has generated "better-than-expected" interest from customers, Tan said. The company plans to roll out new games including ‘‘Bubble Fighter’’ and ‘‘Legend of Immortals’’ in the next few quarters, he said.
Demand for older titles has ‘‘stabilized’’ after the company introduced expansion packs, he said.
Third-quarter net income fell to 289 million yuan from 366.6 million yuan a year earlier, the company said in a statement yesterday. That missed the 328.3 million yuan average of seven analyst estimates compiled by Bloomberg. Sales fell to 1.1 billion yuan from 1.27 billion yuan.
Shanda’s American depositary receipts rose 0.5 percent to $5.69 in New York trading yesterday before the announcement. The stock has declined 44 percent this year.
Parent Shanda Interactive Entertainment Ltd.’s third- quarter profit fell 77 percent to 99.3 million yuan, according to a separate statement.
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