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Shanda Games Reports First Quarter 2011 Unaudited Results
http://www.knobias.com/story.htm?eid=3.1.f6cd92e1e10d518140517cfa47d12cce64efa9e79743108963a3d19035682195
Tuesday , May 31, 2011 16:30ET
SHANGHAI, May 31, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the first quarter ended March 31, 2011.
Non-GAAP Financial Highlights
-- Net revenues were RMB1,252.6 million (US$191.0 million), up 9.6% YoY and
8.7% QoQ.
-- Operating income was RMB415.5 million (US$63.4 million), up 0.5% YoY and
6.5% QoQ.
-- Net income was RMB368.5 million (US$56.2 million), up 2.8% YoY and down
12.7% QoQ. The QoQ decrease was primarily due to a decline in government
financial incentives, which totaled RMB33.2 million (US$5.1 million) in
Q1 2011, compared to RMB124.8 million in Q4 2010.
-- Earnings per diluted ADS were RMB1.30 (US$0.20), compared with RMB1.24
in Q1 2010 and RMB1.48 in Q4 2010.
GAAP Financial Highlights
-- Net revenues were RMB1,252.6 million (US$191.0 million), up 9.6% YoY and
8.7% QoQ.
-- Massively multi-player online role-playing games (MMORPGs) revenues were
RMB1,092.8 million (US$166.7 million), up 8.8% YoY and 5.0% QoQ.
-- Advanced casual games revenues were RMB92.5 million (US$14.1 million),
flat YoY and up 49.4% QoQ.
-- Other revenues were RMB67.3 million (US$10.2 million), up 45.7% YoY and
35.4% QoQ.
-- Operating income was RMB350.1 million (US$53.4 million), down 7.4% YoY
and up 7.8% QoQ.
-- Net income was RMB312.9 million (US$47.7 million), down 4.9% QoQ and
14.6% YoY. The QoQ decrease was primarily due to a decline in government
financial incentives, which totaled RMB33.2 million (US$5.1 million) in
Q1 2011, compared with RMB124.8 million in Q4 2010.
-- Earnings per diluted ADS were RMB1.10 (US$0.17), compared with RMB1.14
in Q1 2010 and RMB1.30 in Q4 2010.
Operating Highlights
-- For MMORPGs, Active paying accounts (APA) increased 4.0% QoQ to 9.85
million, and average monthly revenue per active paying account (ARPU)
increased 0.9% QoQ to RMB37.0.
-- For advanced casual games, APA increased 22.0% QoQ to 0.91 million, and
ARPU increased 22.5% QoQ to RMB33.9.
"We are pleased to report solid results for the first quarter of 2011," said Mr. Alan Tan, Chairman and CEO of Shanda Games. "Our solid financial performance came in ahead of our expectations, mainly driven by the growing popularity of our recent releases such as 'Dragon Nest' and 'Hades Realm 2,' the stable performance of our legacy game series 'Mir II' and 'Woool,' as well as the strength of our other important games 'Aion' and 'Maple Story.' We are also excited by the launch of our highly-anticipated game, 'Legend of Immortals,' a few weeks ago. It is the first example of the implementation of our strategy to 'communitize' online games and has already received an overwhelming response from users. We believe these newer titles and other exciting games in our pipeline will help to further diversify our revenue base and bring down the average age of our game portfolio. At the same time, we are actively exploring opportunities in the advanced social game and social mobile game markets and expect to release the first several games in the second half of the year. In addition, we will continue to leverage our operational expertise and high quality collection of games to further expand in new and existing markets overseas.
"Looking ahead, as we continue to implement our 'All-Star, All-Platform and All-Region,' or 'Triple-A,' strategy, which revolves around solidifying and growing our game portfolio with high-quality, highly interactive games, and expand into various platforms and regions, we are confident that we are well positioned to enter into a much broader market and remain one of the most innovative and forward thinking companies in the online games industry over the long term."
GAME 1Q earnings May 31st 2011 AMC
Shanda Games to Report First Quarter 2011 Financial Results on June 1, 2011 (Beijing/Hong Kong Time)
Thursday , May 19, 2011 06:00ET
SHANGHAI, May 19, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games") (Nasdaq: GAME), a leading online game developer, operator and publisher in China, will announce its unaudited financial results for the first quarter 2011 ended March 31, 2011 on Wednesday, June 1, 2011 Beijing / Hong Kong time.
The earnings release will be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Shanda Games' management team will host a conference call on Wednesday, June 1, 2011 at 9:00 am (Beijing/Hong Kong time) / Tuesday, May 31, 2011 at 9:00 pm (Eastern Time) to present an overview of the Company's financial performance and business operations.
Dial-in Numbers:
U.S. Toll Free: 866-700-6067
South China Toll Free /China
Telecom: 10800-130-0399
North China Toll Free /China
Telecom: 10800-152-1490
South China Toll Free /China
Netcom: 10800-852-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-213-8834
Passcode: 53199050
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on June 1, 2011 for 7 days.
U.S. Toll Free: 888-286-8010
International Toll: +1-617-801-6888
Passcode: 72965781
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Shanda Games' "Legend of Immortals" Received Overwhelming Response
Tuesday , May 17, 2011 12:39ET
SHANGHAI, May 17, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (Nasdaq: GAME), a leading online game developer, operator and publisher in China, commenced open testing for "Legend of Immortals" on May 16, 2011, and received overwhelming response from gamers.
"Legend of Immortals" is a highly anticipated massively multi-player online role playing game (MMORPG) developed in-house by Shanda Games and adapted from the immensely popular novel "Xing Chen Bian". Since the launch of testing, the game has been praised by gamers for its game design and concept arts. The widespread popularity of the novel "Xing Chen Bian" has also helped build a large user base.
It is also the first implementation of the Company's strategy to build social communities for its large MMO games. Pre-launch, the Company spent time building a social network platform that fully integrated with this game with a full set of social features to allow gamers to share their status and achievements with their friends on a real time basis. Players can enjoy social network games (SNGs) and other applications provided by third party in this platform. In addition, the platform also has links to third-party social network service (SNS) sites such as Facebook and Renren so that gamers can share their information with their friends outside of the game. At the end of the first open test day, the registered accounts of the SNS of "Legend of Immortals" have already exceeded 3.5 million.
"We are very pleased with the overwhelming response we got from gamers and the popularity of 'Legend of Immortals' during this short period of time, which further validates the strength of our in-house development capability, and the success of our strategy to turn MMORPGs into open social network platform," said Alan Tan, Chairman and Chief Executive Officer of Shanda Games. "We believe communitization is the future trend of MMORPGs development. 'Legend of Immortals' not only opens a new page for MMORPGs but also serves as an important growth driver of our business going forward."
China Hosts A Virtual Revolution
On Friday May 6, 2011, 2:53 pm EDT
http://finance.yahoo.com/news/China-Hosts-A-Virtual-ibd-3564941566.html?x=0&.v=1
Video game consoles aren't just for kids anymore. The rapidly evolving gaming realm has become a hot topic among investors. China's exploding online gaming market sits atop the white-hot tip of the flame.
China's largest online gaming operator, by revenue, is Tencent Holdings an Internet portal and content provider. It generated an estimated $1.4 billion in gaming revenue last year.
NetEase.com (NASDAQ:NTES - News) was next in line, drawing $749 million in sales from gaming.
Shanda Games (NASDAQ:GAME - News), Perfect World (NASDAQ:PWRD - News) and Changyou (NASDAQ:CYOU - News) filled out the bill.
Among investors, NetEase.com and Sohu.com (NASDAQ:SOHU - News) have been the hot tickets.
The pair has led the advance of the Computer Software Gaming group to the No. 70 slot among IBD's industry rankings on Friday, up from No. 124 at the beginning of the year.
Both companies develop and market games accessed and played online. More traditional game makers, including Electronic Arts (NASDAQ:ERTS - News), Activision Blizzard (NASDAQ:ATVI - News) and Nintendo (OTCPK:NTDOY), produce packaged games that might be played online, but are store-bought and played over dedicated gaming consoles.
Traditionally, those games have required tens of millions of dollars to develop. The big game makers unveil new creations across video store chains, not unlike the gala opening of a blockbuster film.
But enthusiasm for the newer, Web-based online gaming model is quickly expanding beyond Asia, across the industry, disrupting the older business models.
Such PC-based online games, many of which are free to play, are rapidly amassing devotees. The result: Big game developers are zeroing in on fewer packaged releases and focusing on types of games most likely to draw the broadest audiences possible.
And they are stepping up efforts to boost revenue from their online operations. As John Riccitiello, CEO at Electronic Arts, said on his last quarterly earnings conference call, the company's three strategic objectives are to produce "fewer, better, bigger packaged goods games," boost online sales and control costs.
1. Business
At about $60 per game, the bulk of industry revenue still comes from packaged goods. Groups of buyers can play those games online, but must use consoles like the Microsoft Xbox and Sony PlayStation.
Companies like Sohu, NetEase and Shanda offer online games that are free to play on PCs and handheld units. They earn revenue through advertising and from users who pay fees to upgrade their weapons or acquire new territories to explore. While free online games generate less revenue than packaged products, they often bring higher profits. Some of the games have a pay-to-play model, though the trend is moving to free-to-play.
"The packaged-good companies are struggling with that," said David Cole, an analyst at DFC Intelligence, a market research firm. "Gamers are rapidly adopting the virtual item model, where they purchase individual digital components such as virtual currency, items or characters."
The rise of free-to-play online games dragged game-industry revenue down in 2009 and 2010 vs. the peak in 2008, said Cole.
"The free-to-play model is where the disruption is occurring," he said. "It's been the strongest in terms of steady growth but in the short term, they provide less revenue."
• Name of the game: Games companies need to be lean, mean, flexible and creative to maneuver through a changing landscape that is disrupting older business models.
2. Market
The free-to-play trend is nicking industry revenue, but expanding the overall market. That's especially true in foreign markets, where many can't afford a game console, but already have a personal computer.
"The audience for gaming has increased from niche to mass market," said Billy Pidgeon, an analyst with M2 Research.
Social networking sites like Facebook are accelerating that trend. An estimated 290 million Facebook users now play games like "Mafia Wars," "Pet Society" and "FarmVille" an average of three-and-a-half hours per month. The channel has pulled in demographics who wouldn't otherwise touch a game console.
Social networks are performing similar assists in China through up-and-coming plays like the recent IPO Renren (NYSE:RENN - News) as well as industry leaders like Tencent, which is rapidly plumping its social networking offerings.
Nintendo's easy-to-use Wii, introduced in November 2006, also pulled a nontraditional demographic into the gaming fold.
The Wii console includes simple-to-play games like bowling and tennis, as well as games designed to help people exercise. That reached further into a mainstream audience, and generated sales of more than 86 million Wii consoles.
"All of this has had a huge impact on drawing in more players and fueled the expansion," said Pidgeon.
The online game model has also revived the pulse of the PC sector, where software sales had been in decline.
"Companies are finding new revenue streams for PC gaming," said Pidgeon.
The difference between the market for console-based games and more casual free games is volume. It can take hundreds of casual games to match the revenue of one major hit retail product.
The PC-based online market is biggest in Asia and is projected to grow 32% from 2010 to 2014 to $15 billion, according to DFC.
The industry is also getting a lift from games played on smartphones, a small but fast-growing sector.
3. Climate
Games played on social networking sites are now about a billion-dollar market. Revenue from games played on smartphones is less, but growing fast thanks to Apple (NASDAQ:AAPL - News) with its iTunes distribution platform.
"Apple opened up the floodgates of game applications and other companies are following suit," said Michael Cai, an analyst at research firm Interpret.
Price tags for games on iTunes range from $1 to about $10 each. That attracts a lot of users.
"There are some people who have never played a game before and hear about 'Angry Birds' and pay the $1 to get it," said Cai. "Core gamers are getting in on it as well."
"Angry Birds," by Finland-based Rovio Mobile, cost about $400,000 to develop and has been downloaded 140 million times, he said, and was the No. 1 selling game for both iPhone and iPad in 2010. Rovio has also introduced a line of "Angry Birds" toys and has a movie in the works.
"Five years ago video games were seen as a market for young men," said Cai. "That has finally changed and people understand this is a mass-media market."
4. Technology
It has been several years since the Xbox and PlayStation upgraded to more powerful systems. But both continually expand via the introduction of peripheral devices.
One recent innovation in the sector is Microsoft's Kinect, an external motion detector that connects to the Xbox.
The device includes cameras and software that allow game players to control on-screen action with their body movements and voice commands.
Unlike the Wii, they don't need controllers. More than 10 million units have sold at $150 each since its debut.
"The Kinect has been extremely successful, like Wii," said Cole. "But there is still a question as to if it is a novelty or will it have a viable business model. That is an issue the industry is still struggling with."
Sony had previously introduced its own controller-free motion detection device called Move, which sells for $99.
Nintendo also recently launched its 3DS system, a glasses-free, 3D portable gaming system. Nintendo and game publishers are hoping it will revitalize the portable gaming segment, which has seen business shift to smartphones and tablets. The 3DS is the next-generation version of the company's popular dual-screen DS handheld gaming device, first launched in 2004. The system retails for $250.
5. Outlook:
New platforms, new markets and new business models are shaking up the existing power structure, as the market for packaged goods has become less profitable, said Cole. Established players are underserving many of the growing niches, though they are moving in that direction. Consumer spending is growing, but is increasingly spread out among many niche markets.
• Upside: Overall, the market will show fairly steady growth and there is a lot of potential in emerging markets, said Cole. "You'll still have blockbuster games and then all these little niches, but they're not easy to understand."
• Risks: Databases cataloging information for millions of online users lure hackers who like to phish in large schools. The recent attack by a yet-unknown group on Sony's (NYSE:SNE - News) PlayStation network gleaned names, email addresses and possibly credit-card information from a reported 100 million user accounts.
The breach straightened the gaming heavyweight's defensive posture and sent a warning to other providers of online games to crank up security on their networks.
Shanda Games to Commence Open-beta Testing for "Legend of Immortals"
Monday 18 April 2011
Shanda Games Limited ("Shanda Games", or the "Company") (Nasdaq: GAME), a leading online game developer, operator and publisher in China, announced that it plans to commence open-beta testing for "Legend of Immortals", an action massively multi-player online role playing game (MMORPG), in May 2011.
Legend of Immortals is an in-house developed action MMORPG based on the popular online fantasy novel "Xing Chen Bian". The novel was among the most frequently searched titles on many Chinese search engines for 36 consecutive weeks in 2008. The widespread popularity of the novel led to a movie adaptation in China and its recognition as one of the Top 10 Online Novels in 2009 and 2010 on Baidu.com. Shanda Games acquired the online game adaptation license for "Xing Chen Bian" in 2009, following an intense round of bidding by numerous online game developers.
With the huge success of "Xing Chen Bian" and its large existing fan base, Legend of Immortals has been cited as one of the Top 10 most anticipated new games as voted by gamers during the China Game Industry Annual Conference in 2011. From 2009 through 2011, Legend of Immortals has received a series of prestigious awards in China's online game industry, which recognized its success in terms of game development, concept arts, game animation design and graphic design, including:
"Top 10 Most Anticipated Online Game" and "Top 10 Highest Potential Online Games" by 17173.com, a leading online game portal in China;
"2010 China Game Developers Award - 2D Arts" and "2010 China Game Developers Award - Concept Arts";
"2010 CGDA Best Game Animation Design Award Candidate";
"Golden Phoenix Awards - Top Ten Most Anticipated Online Game";
"UI Award - Most Interactively Designed Online Games"; and
"UI Award - Top 5 Most Popular Games".
Alan Tan, Chairman and Chief Executive Officer of Shanda Games, commented, "We are pleased to see that the immense popularity of 'Xing Chen Bian' has increased the anticipation for the launch of Legend of Immortals, our in-house developed MMORPG fantasy novel adaptation. Through four successful rounds of testing, this anticipation has grown, as recognized by the numerous prestigious awards bestowed upon the game. We are confident that the positive momentum we have built to date will lead to a successful commercial launch in the near future."
StoXline: buy
Price and moving averages
Price and moving averages has closed above its Short term moving average. Short term moving average is currently above mid-term; AND above long term moving averages. From the relationship between price and moving averages; we can see that: This stock is BULLISH in short-term; and BULLISH in mid-long term.
Target
Six months: 8.48 One year: 9.90
http://www.stoxline.com/quote.php?symbol=game
JANCO Partners Upgrades Shanda Games (GAME) to Buy; FPS Market Opportunity
11:08 am ET 03/08/2011-
JANCO Partners upgraded Shanda Games (NASDAQ: GAME) from Market Perform to Buy. PT raised from $7.09 to $7.78.
JANCO analyst says, "The majority of the Company s performance arrives from two older games, a portfolio life cycle perception that has weighed heavily on share price performance and our initial rating enthusiasm.
Offsetting legacy title weight includes successful recent game releases: Dragon Nest and Hades Realm II, both key contributors for fiscal Q1 11 sales growth outlook and fiscal Q4 10 reported performance upside.
Key upcoming games include: Legend of Immortals, Bubble Fighter, Final Fantasy XIV, Dragon Ball Online, Sudden Attack (licensed FPS) and Point Blank (licensed FPS)." "It s possible they could have won the license to operate / develop Call of Duty: Online in China from Activision Blizzard (Nasdaq: ATVI), considering their development capabilities / experience, item based sales model and positive view toward FPS market opportunity; strongly combinated by the necessity to drive forward aggregate performance growth from new game introductions as legacy performance drivers remain challenged.
The aforementioned deal metrics could drive attractive terms for Activision Blizzard, for an IP that was likely highly contended." .
Shanda Games keen to list in Shanghai
Shanda Interactive Entertainment Ltd
BEIJING, March 6 | Sun Mar 6, 2011 6:44am EST
BEIJING, March 6 (Reuters) - Chinese internet media firm Shanda Interactive Entertainment (SNDA.O) said on Sunday its unit Shanda Games (GAME.O) is keen for a listing on the mainland's stock exchange when rules allow.
China has long said it wants to open its stock market to foreign companies via an international board on the Shanghai Stock Exchange.
Like foreign companies, Chinese companies incorporated in a foreign country are not allowed to sell shares on the mainland.
Shanda Interactive Chairman Chen Tianqiao said once the international board is ready, Shanda Games, a game developer based in Shanghai, will apply for a listing immediately.
"It would be great if we can return (to the mainland stock markets). Every company wants to share the fruits of its country's economic growth," said Chen, describing his companies as "orphan stocks" because they are listed in the United States although their businesses are in China.
Chen was speaking to Reuters on the sidelines of the annual Chinese Communist Party's consultative meeting. (Reporting by Huang Yuntao; Writing by Soo Ai Peng; Editing by Jon Loades-carter)
ThinkEquity Upgrades Shanda Games (GAME) to Buy, Raises Price Target to $8
8:52 am ET 03/02/2011- ThinkEquity upgraded shares of Shanda Games (NASDAQ: GAME) from Hold to Buy this morning, also boosting the stocks price target from $6 to $8.
Shanda Q4 Beats, Helped By Online Video Unit.
By Tiernan Ray
Chinese video game and online content developer Shanda Interactive Entertainment Online (SNDA) this evening reported Q4 revenue of $232 million, beating the consensus $217.1 million, and earnings per share of 46 cents, ahead of the average 39-cent estimate.
Revenue in the three months ending in December was up 2%, year over year, driven by a 14% decline in revenue at the company’s Shanda Games (GAME) unit, disclosed earlier this evening, and a 9% decline in Shanda’s online revenue. Both divisions saw a 5% rise in revenue from the prior quarter, however.
“Other” revenue of $61 million more than doubled, year over year, the company said, driven in large part by the inclusion of the “Ku6” online video site that was bought in January of last year by the “Hurray!” segment of Shanda. Ku6 runs so-called value-added services delivered to cell phones. Ku6 competes with, among others, Youku.com (YOKU), which reported results last night.
Shanda CEO Tianqiao Chen said that 2010 had been a year of transformation and remarked, “We are pleased with the Company’s continued progress and believe that this critical period of transformation that we are currently in is laying a solid foundation to drive sustainable growth over the long term.”
The company will host a conference call with management this evening at 9:30 am, Eastern.
Shanda Interactive shares traded down 9 cents to $42.01 in late trading before the results were announced.
Shanda Games' shares jump on first profit beat
Wed Mar 2, 2011 11:31am EST
(Reuters) - Shares of Shanda Games Ltd (GAME.O) rose 13 percent a day after the company's profit topped expectations for the first time.
"We are optimistic that a stable revenue stream from existing games coupled with a healthy pipeline could reinvigorate revenue growth in 2011," ThinkEquity analyst Atul Bagga, who upgraded the company's stock a notch to "Buy," said in a note.
The Shanghai-based company also said its board approved a plan to buyback $150 million worth of ADS over the next two years.
For the fourth quarter, the Chinese game developer, which charges users subscription revenue for online multiplayer games, reported earnings of 20 cents per ADS on revenue of $174 million.
Analysts on average were looking for earanings of 17 cents per ADS on revenue of $174 million, according to Thomson Reuters I/B/E/S.
Shares of the company were up 13 percent at $6.49 in morning trade on Nasdaq.
GAME: ThinkPanmure Ups to Buy from Hold
Wednesday, March 02, 2011 10:40ET
Issuer: Shanda Games Ltd. (NasdaqNM: GAME)
Analyst Firm: ThinkPanmure
Ratings Action: UPGRADE
Current Rating: Buy (from Hold)
This rating information was reported by TheFlyOnTheWall.
Shanda Games Reports Fourth Quarter and Full Year 2010 Unaudited Results
Tuesday , March 01, 2011 16:30ET
SHANGHAI, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Financial Highlights
-- Net revenues increased 5.1% quarter-over-quarter and decreased 13.7%
year-over-year to RMB1,152.5 million (US$174.0 million).
-- Massively multi-player online role-playing games (MMORPGs) revenues
increased 7.1% quarter-over-quarter and declined 17.0% year-over-year to
RMB1,040.9 million (US$157.2 million). Active paying accounts (APA) for
MMORPGs increased 3.0% quarter-over-quarter to 9.46 million, and average
monthly revenue per active paying account (ARPU) increased 4.0%
quarter-over-quarter to RMB36.7.
-- Advanced casual games revenues decreased 18.9% quarter-over-quarter and
were essentially flat year-over-year at RMB61.9 million (US$9.3
million). The sequential decline was mainly attributable to a weaker
seasonality effect in the fourth quarter of 2010. APA for advanced
casual games decreased 10.5% quarter-over-quarter to 0.75 million, and
ARPU decreased 9.3% quarter-over-quarter to RMB27.7.
-- Other revenues increased 2.9% quarter-over-quarter and 151.0%
year-over-year to RMB49.7 million (US$7.5 million).
-- Gross profit increased 8.4% quarter-over-quarter and decreased 12.6%
year-over-year to RMB701.0 million (US$105.8 million). Gross margin was
60.8% in the fourth quarter of 2010, up from 59.0% in the third quarter
of 2010 and 60.0% in the fourth quarter of 2009.
-- US GAAP operating income increased 6.1% quarter-over-quarter and
decreased 32.5% year-over-year to RMB324.9 million (US$49.1 million).
Operating margin was 28.2% in the fourth quarter of 2010, compared to
27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of
2009.
-- Non-GAAP operating income, defined as operating income excluding
share-based compensation, increased 6.4% quarter-over-quarter and
decreased 31.8% year-over-year to RMB350.5 million (US$53.0 million).
Non-GAAP( )operating margin was 30.4% in the fourth quarter of 2010,
compared to 30.1% in the third quarter of 2010 and 38.4% in the fourth
quarter of 2009.
-- US GAAP net income attributable to ordinary shareholders increased 26.9%
quarter-over-quarter and decreased 11.7% year-over-year to RMB366.6
million (US$55.4 million). US GAAP earnings per diluted ADS were RMB1.30
(US$0.20), compared to RMB1.02 in the third quarter of 2010 and RMB1.44
in the fourth quarter of 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders increased
25.6% quarter-over-quarter and decreased 12.3% year-over-year to
RMB392.2 million (US$59.3 million). Non-GAAP( )earnings per diluted ADS
were RMB1.40 (US$0.22), compared to RMB1.10 in the third quarter of 2010
and RMB1.54 in the fourth quarter of 2009.
Full Year 2010 Financial Highlights
-- Net revenues decreased 6.3% to RMB4,504.7 million (US$680.2 million)
compared to 2009.
-- MMORPGs revenues decreased 9.1% year-over-year to RMB4,018.3 million
(US$606.7 million). Advanced casual games revenues decreased 1.6%
year-over-year to RMB300.6 million (US$45.4 million). Other revenues
increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
-- US GAAP operating income was RMB1,332.9 million (US$201.3 million) in
2010, compared to RMB1,734.4 million in 2009. Non-GAAP operating income
was RMB1,438.8 million (US$217.3 million) in 2010, compared to
RMB1,860.2 million in 2009.
-- US GAAP net income attributable to ordinary shareholders was RMB1,288.8
million (US$194.6 million), compared to RMB1,453.0 million in 2009. US
GAAP earnings per diluted ADS for 2010 were RMB4.52 (US$0.68), compared
with RMB5.20 in 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders was
RMB1,394.7 million (US$210.6 million), compared to RMB1,578.8 million in
2009. Non-GAAP( )earnings per diluted ADS in 2010 were RMB4.90
(US$0.74), compared with RMB5.64 in 2009.
"Our fourth quarter 2010 results reached the high end of our previous guidance, primarily on the strength of revenues from new games, as we continue to shift toward a younger game portfolio," said Mr. Alan Tan, Chairman and CEO of Shanda Games.
"During the fourth quarter, 'Dragon Nest' continued to gain impressive reception in Mainland China, Japan and Taiwan, making it the most successful recent game release in Asia. We are also encouraged by the favorable launch of 'Hades Realm II' in China in November. In addition, we will continue to bring high quality titles to Chinese gamers, including 'Legend of Immortals,' 'Bubble Fighters,' 'Final Fantasy XIV,' and 'Sudden Attack' and 'Point Blank,' which are the top selling first person shooting games (FPS) in Korea and Indonesia, respectively.
"Additionally, we are seeing an accelerated growth in our international business, driven by successful launches of new titles in overseas markets. We expect to further expand our business geographically to take full advantage of our high-quality titles and operational expertise.
"Our performance in the fourth quarter of 2010 gives us confidence in our competitive position, our capabilities, and our future. Our continuing focus on quality content combined with the spirit of innovation has served us well and laid a solid foundation for a sustainable business as we move into the new year," concluded Mr. Tan.
Fourth Quarter 2010 Financial Results
Net Revenues. Net revenues were RMB1,152.5 million (US$174.0 million), representing an increase of 5.1% from RMB1,096.3 million in the third quarter of 2010 and a decrease of 13.7% from RMB1,336.2 million in the fourth quarter of 2009.
Net revenues from MMORPGs, which represents net MMORPG revenues generated in China, and net revenues from advanced casual games, which represents net advanced casual game revenues generated in China, accounted for 90.3% and 5.4% of total net revenues, respectively. Other revenues, which primarily represents net overseas revenues generated from game licensing, game operations, and advertising, accounted for 4.3% of total net revenues.
Net revenues from MMORPGs were RMB1,040.9 million (US$157.2 million), representing a 7.1% increase from RMB971.7 million in the third quarter of 2010 and a 17.0% decline from RMB1,254.4 million in the fourth quarter of 2009. The sequential increase in revenues was primarily due to the full quarter contribution from Dragon Nest, which was launched in late July 2010. APA for MMORPGs increased 3.0% sequentially to 9.46 million. ARPU for MMORPGs increased 4.0% from RMB35.2 in the preceding quarter to RMB36.7 in the fourth quarter of 2010.
Net revenues from advanced casual games were RMB61.9 million (US$9.3 million), representing a 18.9% decline from RMB76.3 million in the third quarter of 2010 and a 0.2% decline from RMB62.0 million in the fourth quarter of 2009. The sequential decrease in revenue was primarily due to seasonality, for which the third quarter of each year is usually a high season with the summer holidays and ChinaJoy promotions. As a result, APA for advanced casual games decreased 10.5% sequentially to 0.75 million, and ARPU decreased 9.3% sequentially to RMB27.7.
Other revenues in the fourth quarter of 2010 were RMB49.7 million (US$7.5 million), an increase of 2.9% from RMB48.3 million in the third quarter of 2010 and an increase of 151.0% from RMB19.8 million in the fourth quarter of 2009.
Cost of Revenues. Cost of revenues for the fourth quarter of 2010 was RMB451.5 million (US$68.2 million), compared with RMB449.4 million in the third quarter of 2010 and RMB534.3 million in the fourth quarter of 2009.
Gross Profit. Gross profit for the fourth quarter of 2010 was RMB701.0 million (US$105.8 million), representing an 8.4% increase from RMB646.9 million in the third quarter of 2010 and a 12.6% decrease from RMB801.9 million in the fourth quarter of 2009. Gross margin was 60.8% in the fourth quarter of 2010, compared with 59.0% in the third quarter of 2010 and 60.0% in the fourth quarter of 2009. The sequential increase in gross margin was mainly attributable to an increase in revenues generated from in-house games as a percentage of net revenues.
Operating Expenses. Total operating expenses for the fourth quarter of 2010 were RMB376.1 million (US$56.7 million), compared with RMB340.7 million in the third quarter of 2010 and RMB320.3 million in the fourth quarter of 2009. Operating expenses represented 32.6% of net revenues, compared with 31.1% in the third quarter of 2010 and 24.0% in the fourth quarter of 2009.
Research and development expenses increased 17.9% quarter-over-quarter and 30.0% year-over-year to RMB137.2 million (US$20.7 million) in the fourth quarter of 2010. The sequential increase in research and development expenses was mainly due to a full-quarter consolidation of Eyedentity Games' R&D expenses and an increase in R&D headcount during the fourth quarter of 2010. Research and development expenses represented 11.9% of net revenues, compared with 10.6% in the third quarter of 2010 and 7.9% in the fourth quarter of 2009.
Sales and marketing expenses increased 0.7% quarter-over-quarter and 7.1% year-over-year to RMB138.5 million (US$20.9 million) in the fourth quarter of 2010. Sales and marketing expenses represented 12.0% of net revenues, compared with 12.5% in the third quarter of 2010 and 9.7% in the fourth quarter of 2009.
General and administrative expenses increased 15.7% quarter-over-quarter and 17.4% year-over-year to RMB100.4 million (US$15.1 million) in the fourth quarter of 2010. The sequential increase in general and administrative expenses was mainly due to higher rebate of business tax paid by the Company's subsidiaries during the third quarter as well as an increase in share-based compensation expenses in the fourth quarter of 2010. General and administrative expenses accounted for 8.7% of net revenues, compared with 7.9% in the third quarter of 2010 and 6.4% in the fourth quarter of 2009.
Share-based compensation expenses were RMB25.6 million (US$3.9 million) in the fourth quarter of 2010, compared with RMB23.2 million in the third quarter of 2010 and RMB32.0 million in the fourth quarter of 2009.
Operating Income. Operating income for the fourth quarter of 2010 was RMB324.9 million (US$49.1 million), compared with RMB306.2 million in the third quarter of 2010 and RMB481.6 million in the fourth quarter of 2009. Operating margin was 28.2% in the fourth quarter of 2010, compared to 27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of 2009.
Non-GAAP Operating Income. Non-GAAP operating income for the fourth quarter of 2010 was RMB350.5 million (US$53.0 million), compared with RMB329.4 million in the third quarter of 2010 and RMB513.6 million in the fourth quarter of 2009. Non-GAAP operating margin was 30.4% in the fourth quarter of 2010, compared with 30.1% in the third quarter of 2010 and 38.4% in the fourth quarter of 2009.
Government Financial Incentives. Government financial incentives totaled RMB124.8 million (US$18.8 million) in the fourth quarter of 2010, compared with RMB52.0 million in the third quarter of 2010 and RMB76.8 million in the fourth quarter of 2009. The Company's receipt of government financial incentives is subject to time lags and inconsistent government administrative practices relating to timing of payment.
Income Tax Expense. Income tax expense for the fourth quarter of 2010 was RMB87.2 million (US$13.1 million), as compared with RMB75.9 million in the third quarter of 2010 and RMB128.4 million in the fourth quarter of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the fourth quarter of 2010 was RMB366.6 million (US$55.4 million), compared with RMB289.0 million in the third quarter of 2010 and RMB415.2 million in the fourth quarter of 2009. Earnings per diluted ADS in the fourth quarter of 2010 were RMB1.30 (US$0.20), compared with RMB1.02 in the third quarter of 2010 and RMB1.44 in the fourth quarter of 2009.
Non-GAAP Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the fourth quarter of 2010 was RMB392.2 million (US$59.3 million), compared with RMB312.2 million in the third quarter of 2010 and RMB447.2 million in the fourth quarter of 2009. Non-GAAP earnings per diluted ADS in the fourth quarter of 2010 were RMB1.40 (US$0.22), compared with RMB1.10 in the third quarter of 2010 and RMB1.54 in the fourth quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the fourth quarter of 2010 the Company generated RMB604.1 million (US$91.2 million) in cash flow from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash decreased from RMB3,417.8 million as of September 30, 2010 to RMB2,174.8 million (US$328.3 million) as of December 31, 2010. The decrease was primarily a result of moving RMB1,215.2 million (US$183.5 million) to time deposits with maturity exceeding one year and pledge of RMB503.0 million (US$76.0 million) as collateral for a loan, but partially offset by cash flows from operations.
Full Year 2010 Financial Results
Net revenues for the full year 2010 were RMB4,504.7 million (US$680.2 million), representing a 6.3% decrease from RMB4,806.7 million in 2009.
Revenues from MMORPGs for the full year 2010 decreased 9.1% year-over-year to RMB4,018.3 million (US$606.7 million), and revenues from advanced casual games decreased 1.6% year-over-year to RMB300.6 million (US$45.4 million). Other revenues for the year 2010 increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
Gross profit for the full year 2010 was RMB2,667.5 million (US$402.8 million), compared with RMB2,873.2 million in 2009. Gross margin was 59.2% in 2010, compared with 59.8% in 2009.
Operating income for the full year 2010 were RMB1,332.9 million (US$201.3 million), compared with RMB1,734.4 million in 2009. Operating margin was 29.6% in 2010, compared with 36.1% in 2009.
Non-GAAP operating income for the full year 2010 were RMB1,438.8 million (US$217.3 million), compared with RMB1,860.2 million in 2009. Non-GAAP operating margin was 31.9% in 2010, compared with 38.7% in 2009.
Net income attributable to ordinary shareholders for the full year 2010 was RMB1,288.8 million (US$194.6 million), a decrease of 11.3% from RMB1,453.0 million in the full year 2009. Earnings per diluted ADS were RMB4.52 (US$0.68) for the full year 2010, compared with RMB5.20 per diluted ADS for the full year 2009.
Non-GAAP net income attributable to ordinary shareholders for the full year 2010 was RMB1,394.7 million (US$210.6 million), compared with RMB1,578.8 million in the full year 2009. Non-GAAP earnings per diluted ADS were RMB4.90 (US$0.74) for the full year 2010, compared with RMB5.64 for the full year 2009.
Recent Business Highlights
On December 29, 2010, Shanda Games started open-beta testing of "AION: Assault on Balaurea," the 2.0 version of the Company's 3D fantasy MMORPG "AION."
In December 2010 and January 2011, Shanda Games licensed its 3D fantasy MMORPG "Hades Realm II" to Brazil and Thailand. The game has previously been licensed to North America, Singapore, Malaysia, Japan, Korea, Hong Kong, Macau, Taiwan, and parts of Europe.
On January 20, 2011, Shanda Games announced that it received a total of 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference in recognition of Shanda Games' outstanding contributions in the online game industry. Golden Phoenix Awards are issued by China's General Administration of Press and Publication (GAPP) and are considered among the most prestigious awards in China's online game industry.
In January 2011, Shanda Games licensed its 2.5D fantasy MMORPG "Legend of Immortals" to Vietnam.
In February 2011, Shanda Games obtained an exclusive license from Bandai Korea, a subsidiary of a leading Japanese toy making and video game company, Bandai, to operate a 3D MMORPG "Dragon Ball Online" in mainland China. "Dragon Ball Online," adapted from a popular Japanese comic book "Dragon Ball," is one of the most anticipated game titles in the Chinese market according to various major Chinese online game websites.
Share Repurchase
On March 1, 2010, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150 million worth of its outstanding ADSs during the next twenty four (24) months. As of February 28, 2011, the Company has repurchased approximately 6.1 million ADSs for an aggregate consideration of US$37.8 million.
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on March 2, 2010 Beijing/Hong Kong time (8:00 p.m. on March 1, 2010 Eastern Time), to discuss its fourth quarter and annual results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: +1-800-706-7745
Mainland China Netcom
Toll Free: 10800-852-1490
Mainland China Telecom
Toll Free: 10800-152-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-614-3472
Passcode: 60034673
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on March 2, 2011 for 7 days.
U.S. Toll
Free: +1-888-286-8010
International
Toll: +1-617-801-6888
Passcode: 71744900
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars is based on RMB6.6227 to US$1.00 as published by the People's Bank of China on December 31, 2010. The Company makes no representation that the Renminbi or US dollar amounts referred to in this release could have been, or could be, converted into US dollars at such rate or at all. The percentages stated are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2010 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2010. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Company's audited financial statements and this preliminary unaudited financial information.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes non-GAAP financial measures of adjusted net income and adjusted earning per ADS, each of which is adjusted to exclude share-based compensation. The Company believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial statements included with this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this announcement that are not historical facts, including but not limited to statements regarding the long-term growth of the Company, the shift in the Company's revenues to new games, the expansion into global market, the introduction of new game titles, the shift in the Company's titles to a younger game portfolio and the future benefits brought by these new games, represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve various risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include but are not limited to the risk that there are delays in the launch of, or the Company is unable to launch, the games the Company intends to release; such games and any related expansion packs are not well received by users in China; the games fail to meet the expectations of end users; the games that the Company has licensed to partners globally are not well received by end users in these countries and the Company fails to deliver long-term growth, as well as the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Shanda Games
Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.
Shanda Games Reports Fourth Quarter and Full Year 2010 Unaudited Results
Tuesday , March 01, 2011 16:30ET
SHANGHAI, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Financial Highlights
-- Net revenues increased 5.1% quarter-over-quarter and decreased 13.7%
year-over-year to RMB1,152.5 million (US$174.0 million).
-- Massively multi-player online role-playing games (MMORPGs) revenues
increased 7.1% quarter-over-quarter and declined 17.0% year-over-year to
RMB1,040.9 million (US$157.2 million). Active paying accounts (APA) for
MMORPGs increased 3.0% quarter-over-quarter to 9.46 million, and average
monthly revenue per active paying account (ARPU) increased 4.0%
quarter-over-quarter to RMB36.7.
-- Advanced casual games revenues decreased 18.9% quarter-over-quarter and
were essentially flat year-over-year at RMB61.9 million (US$9.3
million). The sequential decline was mainly attributable to a weaker
seasonality effect in the fourth quarter of 2010. APA for advanced
casual games decreased 10.5% quarter-over-quarter to 0.75 million, and
ARPU decreased 9.3% quarter-over-quarter to RMB27.7.
-- Other revenues increased 2.9% quarter-over-quarter and 151.0%
year-over-year to RMB49.7 million (US$7.5 million).
-- Gross profit increased 8.4% quarter-over-quarter and decreased 12.6%
year-over-year to RMB701.0 million (US$105.8 million). Gross margin was
60.8% in the fourth quarter of 2010, up from 59.0% in the third quarter
of 2010 and 60.0% in the fourth quarter of 2009.
-- US GAAP operating income increased 6.1% quarter-over-quarter and
decreased 32.5% year-over-year to RMB324.9 million (US$49.1 million).
Operating margin was 28.2% in the fourth quarter of 2010, compared to
27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of
2009.
-- Non-GAAP operating income, defined as operating income excluding
share-based compensation, increased 6.4% quarter-over-quarter and
decreased 31.8% year-over-year to RMB350.5 million (US$53.0 million).
Non-GAAP( )operating margin was 30.4% in the fourth quarter of 2010,
compared to 30.1% in the third quarter of 2010 and 38.4% in the fourth
quarter of 2009.
-- US GAAP net income attributable to ordinary shareholders increased 26.9%
quarter-over-quarter and decreased 11.7% year-over-year to RMB366.6
million (US$55.4 million). US GAAP earnings per diluted ADS were RMB1.30
(US$0.20), compared to RMB1.02 in the third quarter of 2010 and RMB1.44
in the fourth quarter of 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders increased
25.6% quarter-over-quarter and decreased 12.3% year-over-year to
RMB392.2 million (US$59.3 million). Non-GAAP( )earnings per diluted ADS
were RMB1.40 (US$0.22), compared to RMB1.10 in the third quarter of 2010
and RMB1.54 in the fourth quarter of 2009.
Full Year 2010 Financial Highlights
-- Net revenues decreased 6.3% to RMB4,504.7 million (US$680.2 million)
compared to 2009.
-- MMORPGs revenues decreased 9.1% year-over-year to RMB4,018.3 million
(US$606.7 million). Advanced casual games revenues decreased 1.6%
year-over-year to RMB300.6 million (US$45.4 million). Other revenues
increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
-- US GAAP operating income was RMB1,332.9 million (US$201.3 million) in
2010, compared to RMB1,734.4 million in 2009. Non-GAAP operating income
was RMB1,438.8 million (US$217.3 million) in 2010, compared to
RMB1,860.2 million in 2009.
-- US GAAP net income attributable to ordinary shareholders was RMB1,288.8
million (US$194.6 million), compared to RMB1,453.0 million in 2009. US
GAAP earnings per diluted ADS for 2010 were RMB4.52 (US$0.68), compared
with RMB5.20 in 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders was
RMB1,394.7 million (US$210.6 million), compared to RMB1,578.8 million in
2009. Non-GAAP( )earnings per diluted ADS in 2010 were RMB4.90
(US$0.74), compared with RMB5.64 in 2009.
"Our fourth quarter 2010 results reached the high end of our previous guidance, primarily on the strength of revenues from new games, as we continue to shift toward a younger game portfolio," said Mr. Alan Tan, Chairman and CEO of Shanda Games.
"During the fourth quarter, 'Dragon Nest' continued to gain impressive reception in Mainland China, Japan and Taiwan, making it the most successful recent game release in Asia. We are also encouraged by the favorable launch of 'Hades Realm II' in China in November. In addition, we will continue to bring high quality titles to Chinese gamers, including 'Legend of Immortals,' 'Bubble Fighters,' 'Final Fantasy XIV,' and 'Sudden Attack' and 'Point Blank,' which are the top selling first person shooting games (FPS) in Korea and Indonesia, respectively.
"Additionally, we are seeing an accelerated growth in our international business, driven by successful launches of new titles in overseas markets. We expect to further expand our business geographically to take full advantage of our high-quality titles and operational expertise.
"Our performance in the fourth quarter of 2010 gives us confidence in our competitive position, our capabilities, and our future. Our continuing focus on quality content combined with the spirit of innovation has served us well and laid a solid foundation for a sustainable business as we move into the new year," concluded Mr. Tan.
Fourth Quarter 2010 Financial Results
Net Revenues. Net revenues were RMB1,152.5 million (US$174.0 million), representing an increase of 5.1% from RMB1,096.3 million in the third quarter of 2010 and a decrease of 13.7% from RMB1,336.2 million in the fourth quarter of 2009.
Net revenues from MMORPGs, which represents net MMORPG revenues generated in China, and net revenues from advanced casual games, which represents net advanced casual game revenues generated in China, accounted for 90.3% and 5.4% of total net revenues, respectively. Other revenues, which primarily represents net overseas revenues generated from game licensing, game operations, and advertising, accounted for 4.3% of total net revenues.
Net revenues from MMORPGs were RMB1,040.9 million (US$157.2 million), representing a 7.1% increase from RMB971.7 million in the third quarter of 2010 and a 17.0% decline from RMB1,254.4 million in the fourth quarter of 2009. The sequential increase in revenues was primarily due to the full quarter contribution from Dragon Nest, which was launched in late July 2010. APA for MMORPGs increased 3.0% sequentially to 9.46 million. ARPU for MMORPGs increased 4.0% from RMB35.2 in the preceding quarter to RMB36.7 in the fourth quarter of 2010.
Net revenues from advanced casual games were RMB61.9 million (US$9.3 million), representing a 18.9% decline from RMB76.3 million in the third quarter of 2010 and a 0.2% decline from RMB62.0 million in the fourth quarter of 2009. The sequential decrease in revenue was primarily due to seasonality, for which the third quarter of each year is usually a high season with the summer holidays and ChinaJoy promotions. As a result, APA for advanced casual games decreased 10.5% sequentially to 0.75 million, and ARPU decreased 9.3% sequentially to RMB27.7.
Other revenues in the fourth quarter of 2010 were RMB49.7 million (US$7.5 million), an increase of 2.9% from RMB48.3 million in the third quarter of 2010 and an increase of 151.0% from RMB19.8 million in the fourth quarter of 2009.
Cost of Revenues. Cost of revenues for the fourth quarter of 2010 was RMB451.5 million (US$68.2 million), compared with RMB449.4 million in the third quarter of 2010 and RMB534.3 million in the fourth quarter of 2009.
Gross Profit. Gross profit for the fourth quarter of 2010 was RMB701.0 million (US$105.8 million), representing an 8.4% increase from RMB646.9 million in the third quarter of 2010 and a 12.6% decrease from RMB801.9 million in the fourth quarter of 2009. Gross margin was 60.8% in the fourth quarter of 2010, compared with 59.0% in the third quarter of 2010 and 60.0% in the fourth quarter of 2009. The sequential increase in gross margin was mainly attributable to an increase in revenues generated from in-house games as a percentage of net revenues.
Operating Expenses. Total operating expenses for the fourth quarter of 2010 were RMB376.1 million (US$56.7 million), compared with RMB340.7 million in the third quarter of 2010 and RMB320.3 million in the fourth quarter of 2009. Operating expenses represented 32.6% of net revenues, compared with 31.1% in the third quarter of 2010 and 24.0% in the fourth quarter of 2009.
Research and development expenses increased 17.9% quarter-over-quarter and 30.0% year-over-year to RMB137.2 million (US$20.7 million) in the fourth quarter of 2010. The sequential increase in research and development expenses was mainly due to a full-quarter consolidation of Eyedentity Games' R&D expenses and an increase in R&D headcount during the fourth quarter of 2010. Research and development expenses represented 11.9% of net revenues, compared with 10.6% in the third quarter of 2010 and 7.9% in the fourth quarter of 2009.
Sales and marketing expenses increased 0.7% quarter-over-quarter and 7.1% year-over-year to RMB138.5 million (US$20.9 million) in the fourth quarter of 2010. Sales and marketing expenses represented 12.0% of net revenues, compared with 12.5% in the third quarter of 2010 and 9.7% in the fourth quarter of 2009.
General and administrative expenses increased 15.7% quarter-over-quarter and 17.4% year-over-year to RMB100.4 million (US$15.1 million) in the fourth quarter of 2010. The sequential increase in general and administrative expenses was mainly due to higher rebate of business tax paid by the Company's subsidiaries during the third quarter as well as an increase in share-based compensation expenses in the fourth quarter of 2010. General and administrative expenses accounted for 8.7% of net revenues, compared with 7.9% in the third quarter of 2010 and 6.4% in the fourth quarter of 2009.
Share-based compensation expenses were RMB25.6 million (US$3.9 million) in the fourth quarter of 2010, compared with RMB23.2 million in the third quarter of 2010 and RMB32.0 million in the fourth quarter of 2009.
Operating Income. Operating income for the fourth quarter of 2010 was RMB324.9 million (US$49.1 million), compared with RMB306.2 million in the third quarter of 2010 and RMB481.6 million in the fourth quarter of 2009. Operating margin was 28.2% in the fourth quarter of 2010, compared to 27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of 2009.
Non-GAAP Operating Income. Non-GAAP operating income for the fourth quarter of 2010 was RMB350.5 million (US$53.0 million), compared with RMB329.4 million in the third quarter of 2010 and RMB513.6 million in the fourth quarter of 2009. Non-GAAP operating margin was 30.4% in the fourth quarter of 2010, compared with 30.1% in the third quarter of 2010 and 38.4% in the fourth quarter of 2009.
Government Financial Incentives. Government financial incentives totaled RMB124.8 million (US$18.8 million) in the fourth quarter of 2010, compared with RMB52.0 million in the third quarter of 2010 and RMB76.8 million in the fourth quarter of 2009. The Company's receipt of government financial incentives is subject to time lags and inconsistent government administrative practices relating to timing of payment.
Income Tax Expense. Income tax expense for the fourth quarter of 2010 was RMB87.2 million (US$13.1 million), as compared with RMB75.9 million in the third quarter of 2010 and RMB128.4 million in the fourth quarter of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the fourth quarter of 2010 was RMB366.6 million (US$55.4 million), compared with RMB289.0 million in the third quarter of 2010 and RMB415.2 million in the fourth quarter of 2009. Earnings per diluted ADS in the fourth quarter of 2010 were RMB1.30 (US$0.20), compared with RMB1.02 in the third quarter of 2010 and RMB1.44 in the fourth quarter of 2009.
Non-GAAP Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the fourth quarter of 2010 was RMB392.2 million (US$59.3 million), compared with RMB312.2 million in the third quarter of 2010 and RMB447.2 million in the fourth quarter of 2009. Non-GAAP earnings per diluted ADS in the fourth quarter of 2010 were RMB1.40 (US$0.22), compared with RMB1.10 in the third quarter of 2010 and RMB1.54 in the fourth quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the fourth quarter of 2010 the Company generated RMB604.1 million (US$91.2 million) in cash flow from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash decreased from RMB3,417.8 million as of September 30, 2010 to RMB2,174.8 million (US$328.3 million) as of December 31, 2010. The decrease was primarily a result of moving RMB1,215.2 million (US$183.5 million) to time deposits with maturity exceeding one year and pledge of RMB503.0 million (US$76.0 million) as collateral for a loan, but partially offset by cash flows from operations.
Full Year 2010 Financial Results
Net revenues for the full year 2010 were RMB4,504.7 million (US$680.2 million), representing a 6.3% decrease from RMB4,806.7 million in 2009.
Revenues from MMORPGs for the full year 2010 decreased 9.1% year-over-year to RMB4,018.3 million (US$606.7 million), and revenues from advanced casual games decreased 1.6% year-over-year to RMB300.6 million (US$45.4 million). Other revenues for the year 2010 increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
Gross profit for the full year 2010 was RMB2,667.5 million (US$402.8 million), compared with RMB2,873.2 million in 2009. Gross margin was 59.2% in 2010, compared with 59.8% in 2009.
Operating income for the full year 2010 were RMB1,332.9 million (US$201.3 million), compared with RMB1,734.4 million in 2009. Operating margin was 29.6% in 2010, compared with 36.1% in 2009.
Non-GAAP operating income for the full year 2010 were RMB1,438.8 million (US$217.3 million), compared with RMB1,860.2 million in 2009. Non-GAAP operating margin was 31.9% in 2010, compared with 38.7% in 2009.
Net income attributable to ordinary shareholders for the full year 2010 was RMB1,288.8 million (US$194.6 million), a decrease of 11.3% from RMB1,453.0 million in the full year 2009. Earnings per diluted ADS were RMB4.52 (US$0.68) for the full year 2010, compared with RMB5.20 per diluted ADS for the full year 2009.
Non-GAAP net income attributable to ordinary shareholders for the full year 2010 was RMB1,394.7 million (US$210.6 million), compared with RMB1,578.8 million in the full year 2009. Non-GAAP earnings per diluted ADS were RMB4.90 (US$0.74) for the full year 2010, compared with RMB5.64 for the full year 2009.
Recent Business Highlights
On December 29, 2010, Shanda Games started open-beta testing of "AION: Assault on Balaurea," the 2.0 version of the Company's 3D fantasy MMORPG "AION."
In December 2010 and January 2011, Shanda Games licensed its 3D fantasy MMORPG "Hades Realm II" to Brazil and Thailand. The game has previously been licensed to North America, Singapore, Malaysia, Japan, Korea, Hong Kong, Macau, Taiwan, and parts of Europe.
On January 20, 2011, Shanda Games announced that it received a total of 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference in recognition of Shanda Games' outstanding contributions in the online game industry. Golden Phoenix Awards are issued by China's General Administration of Press and Publication (GAPP) and are considered among the most prestigious awards in China's online game industry.
In January 2011, Shanda Games licensed its 2.5D fantasy MMORPG "Legend of Immortals" to Vietnam.
In February 2011, Shanda Games obtained an exclusive license from Bandai Korea, a subsidiary of a leading Japanese toy making and video game company, Bandai, to operate a 3D MMORPG "Dragon Ball Online" in mainland China. "Dragon Ball Online," adapted from a popular Japanese comic book "Dragon Ball," is one of the most anticipated game titles in the Chinese market according to various major Chinese online game websites.
Share Repurchase
On March 1, 2010, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150 million worth of its outstanding ADSs during the next twenty four (24) months. As of February 28, 2011, the Company has repurchased approximately 6.1 million ADSs for an aggregate consideration of US$37.8 million.
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on March 2, 2010 Beijing/Hong Kong time (8:00 p.m. on March 1, 2010 Eastern Time), to discuss its fourth quarter and annual results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: +1-800-706-7745
Mainland China Netcom
Toll Free: 10800-852-1490
Mainland China Telecom
Toll Free: 10800-152-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-614-3472
Passcode: 60034673
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on March 2, 2011 for 7 days.
U.S. Toll
Free: +1-888-286-8010
International
Toll: +1-617-801-6888
Passcode: 71744900
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars is based on RMB6.6227 to US$1.00 as published by the People's Bank of China on December 31, 2010. The Company makes no representation that the Renminbi or US dollar amounts referred to in this release could have been, or could be, converted into US dollars at such rate or at all. The percentages stated are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2010 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2010. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Company's audited financial statements and this preliminary unaudited financial information.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes non-GAAP financial measures of adjusted net income and adjusted earning per ADS, each of which is adjusted to exclude share-based compensation. The Company believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial statements included with this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this announcement that are not historical facts, including but not limited to statements regarding the long-term growth of the Company, the shift in the Company's revenues to new games, the expansion into global market, the introduction of new game titles, the shift in the Company's titles to a younger game portfolio and the future benefits brought by these new games, represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve various risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include but are not limited to the risk that there are delays in the launch of, or the Company is unable to launch, the games the Company intends to release; such games and any related expansion packs are not well received by users in China; the games fail to meet the expectations of end users; the games that the Company has licensed to partners globally are not well received by end users in these countries and the Company fails to deliver long-term growth, as well as the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Shanda Games
Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.
Shanda Games Reports Fourth Quarter and Full Year 2010 Unaudited Results
Tuesday , March 01, 2011 16:30ET
SHANGHAI, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Financial Highlights
-- Net revenues increased 5.1% quarter-over-quarter and decreased 13.7%
year-over-year to RMB1,152.5 million (US$174.0 million).
-- Massively multi-player online role-playing games (MMORPGs) revenues
increased 7.1% quarter-over-quarter and declined 17.0% year-over-year to
RMB1,040.9 million (US$157.2 million). Active paying accounts (APA) for
MMORPGs increased 3.0% quarter-over-quarter to 9.46 million, and average
monthly revenue per active paying account (ARPU) increased 4.0%
quarter-over-quarter to RMB36.7.
-- Advanced casual games revenues decreased 18.9% quarter-over-quarter and
were essentially flat year-over-year at RMB61.9 million (US$9.3
million). The sequential decline was mainly attributable to a weaker
seasonality effect in the fourth quarter of 2010. APA for advanced
casual games decreased 10.5% quarter-over-quarter to 0.75 million, and
ARPU decreased 9.3% quarter-over-quarter to RMB27.7.
-- Other revenues increased 2.9% quarter-over-quarter and 151.0%
year-over-year to RMB49.7 million (US$7.5 million).
-- Gross profit increased 8.4% quarter-over-quarter and decreased 12.6%
year-over-year to RMB701.0 million (US$105.8 million). Gross margin was
60.8% in the fourth quarter of 2010, up from 59.0% in the third quarter
of 2010 and 60.0% in the fourth quarter of 2009.
-- US GAAP operating income increased 6.1% quarter-over-quarter and
decreased 32.5% year-over-year to RMB324.9 million (US$49.1 million).
Operating margin was 28.2% in the fourth quarter of 2010, compared to
27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of
2009.
-- Non-GAAP operating income, defined as operating income excluding
share-based compensation, increased 6.4% quarter-over-quarter and
decreased 31.8% year-over-year to RMB350.5 million (US$53.0 million).
Non-GAAP( )operating margin was 30.4% in the fourth quarter of 2010,
compared to 30.1% in the third quarter of 2010 and 38.4% in the fourth
quarter of 2009.
-- US GAAP net income attributable to ordinary shareholders increased 26.9%
quarter-over-quarter and decreased 11.7% year-over-year to RMB366.6
million (US$55.4 million). US GAAP earnings per diluted ADS were RMB1.30
(US$0.20), compared to RMB1.02 in the third quarter of 2010 and RMB1.44
in the fourth quarter of 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders increased
25.6% quarter-over-quarter and decreased 12.3% year-over-year to
RMB392.2 million (US$59.3 million). Non-GAAP( )earnings per diluted ADS
were RMB1.40 (US$0.22), compared to RMB1.10 in the third quarter of 2010
and RMB1.54 in the fourth quarter of 2009.
Full Year 2010 Financial Highlights
-- Net revenues decreased 6.3% to RMB4,504.7 million (US$680.2 million)
compared to 2009.
-- MMORPGs revenues decreased 9.1% year-over-year to RMB4,018.3 million
(US$606.7 million). Advanced casual games revenues decreased 1.6%
year-over-year to RMB300.6 million (US$45.4 million). Other revenues
increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
-- US GAAP operating income was RMB1,332.9 million (US$201.3 million) in
2010, compared to RMB1,734.4 million in 2009. Non-GAAP operating income
was RMB1,438.8 million (US$217.3 million) in 2010, compared to
RMB1,860.2 million in 2009.
-- US GAAP net income attributable to ordinary shareholders was RMB1,288.8
million (US$194.6 million), compared to RMB1,453.0 million in 2009. US
GAAP earnings per diluted ADS for 2010 were RMB4.52 (US$0.68), compared
with RMB5.20 in 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders was
RMB1,394.7 million (US$210.6 million), compared to RMB1,578.8 million in
2009. Non-GAAP( )earnings per diluted ADS in 2010 were RMB4.90
(US$0.74), compared with RMB5.64 in 2009.
"Our fourth quarter 2010 results reached the high end of our previous guidance, primarily on the strength of revenues from new games, as we continue to shift toward a younger game portfolio," said Mr. Alan Tan, Chairman and CEO of Shanda Games.
"During the fourth quarter, 'Dragon Nest' continued to gain impressive reception in Mainland China, Japan and Taiwan, making it the most successful recent game release in Asia. We are also encouraged by the favorable launch of 'Hades Realm II' in China in November. In addition, we will continue to bring high quality titles to Chinese gamers, including 'Legend of Immortals,' 'Bubble Fighters,' 'Final Fantasy XIV,' and 'Sudden Attack' and 'Point Blank,' which are the top selling first person shooting games (FPS) in Korea and Indonesia, respectively.
"Additionally, we are seeing an accelerated growth in our international business, driven by successful launches of new titles in overseas markets. We expect to further expand our business geographically to take full advantage of our high-quality titles and operational expertise.
"Our performance in the fourth quarter of 2010 gives us confidence in our competitive position, our capabilities, and our future. Our continuing focus on quality content combined with the spirit of innovation has served us well and laid a solid foundation for a sustainable business as we move into the new year," concluded Mr. Tan.
Fourth Quarter 2010 Financial Results
Net Revenues. Net revenues were RMB1,152.5 million (US$174.0 million), representing an increase of 5.1% from RMB1,096.3 million in the third quarter of 2010 and a decrease of 13.7% from RMB1,336.2 million in the fourth quarter of 2009.
Net revenues from MMORPGs, which represents net MMORPG revenues generated in China, and net revenues from advanced casual games, which represents net advanced casual game revenues generated in China, accounted for 90.3% and 5.4% of total net revenues, respectively. Other revenues, which primarily represents net overseas revenues generated from game licensing, game operations, and advertising, accounted for 4.3% of total net revenues.
Net revenues from MMORPGs were RMB1,040.9 million (US$157.2 million), representing a 7.1% increase from RMB971.7 million in the third quarter of 2010 and a 17.0% decline from RMB1,254.4 million in the fourth quarter of 2009. The sequential increase in revenues was primarily due to the full quarter contribution from Dragon Nest, which was launched in late July 2010. APA for MMORPGs increased 3.0% sequentially to 9.46 million. ARPU for MMORPGs increased 4.0% from RMB35.2 in the preceding quarter to RMB36.7 in the fourth quarter of 2010.
Net revenues from advanced casual games were RMB61.9 million (US$9.3 million), representing a 18.9% decline from RMB76.3 million in the third quarter of 2010 and a 0.2% decline from RMB62.0 million in the fourth quarter of 2009. The sequential decrease in revenue was primarily due to seasonality, for which the third quarter of each year is usually a high season with the summer holidays and ChinaJoy promotions. As a result, APA for advanced casual games decreased 10.5% sequentially to 0.75 million, and ARPU decreased 9.3% sequentially to RMB27.7.
Other revenues in the fourth quarter of 2010 were RMB49.7 million (US$7.5 million), an increase of 2.9% from RMB48.3 million in the third quarter of 2010 and an increase of 151.0% from RMB19.8 million in the fourth quarter of 2009.
Cost of Revenues. Cost of revenues for the fourth quarter of 2010 was RMB451.5 million (US$68.2 million), compared with RMB449.4 million in the third quarter of 2010 and RMB534.3 million in the fourth quarter of 2009.
Gross Profit. Gross profit for the fourth quarter of 2010 was RMB701.0 million (US$105.8 million), representing an 8.4% increase from RMB646.9 million in the third quarter of 2010 and a 12.6% decrease from RMB801.9 million in the fourth quarter of 2009. Gross margin was 60.8% in the fourth quarter of 2010, compared with 59.0% in the third quarter of 2010 and 60.0% in the fourth quarter of 2009. The sequential increase in gross margin was mainly attributable to an increase in revenues generated from in-house games as a percentage of net revenues.
Operating Expenses. Total operating expenses for the fourth quarter of 2010 were RMB376.1 million (US$56.7 million), compared with RMB340.7 million in the third quarter of 2010 and RMB320.3 million in the fourth quarter of 2009. Operating expenses represented 32.6% of net revenues, compared with 31.1% in the third quarter of 2010 and 24.0% in the fourth quarter of 2009.
Research and development expenses increased 17.9% quarter-over-quarter and 30.0% year-over-year to RMB137.2 million (US$20.7 million) in the fourth quarter of 2010. The sequential increase in research and development expenses was mainly due to a full-quarter consolidation of Eyedentity Games' R&D expenses and an increase in R&D headcount during the fourth quarter of 2010. Research and development expenses represented 11.9% of net revenues, compared with 10.6% in the third quarter of 2010 and 7.9% in the fourth quarter of 2009.
Sales and marketing expenses increased 0.7% quarter-over-quarter and 7.1% year-over-year to RMB138.5 million (US$20.9 million) in the fourth quarter of 2010. Sales and marketing expenses represented 12.0% of net revenues, compared with 12.5% in the third quarter of 2010 and 9.7% in the fourth quarter of 2009.
General and administrative expenses increased 15.7% quarter-over-quarter and 17.4% year-over-year to RMB100.4 million (US$15.1 million) in the fourth quarter of 2010. The sequential increase in general and administrative expenses was mainly due to higher rebate of business tax paid by the Company's subsidiaries during the third quarter as well as an increase in share-based compensation expenses in the fourth quarter of 2010. General and administrative expenses accounted for 8.7% of net revenues, compared with 7.9% in the third quarter of 2010 and 6.4% in the fourth quarter of 2009.
Share-based compensation expenses were RMB25.6 million (US$3.9 million) in the fourth quarter of 2010, compared with RMB23.2 million in the third quarter of 2010 and RMB32.0 million in the fourth quarter of 2009.
Operating Income. Operating income for the fourth quarter of 2010 was RMB324.9 million (US$49.1 million), compared with RMB306.2 million in the third quarter of 2010 and RMB481.6 million in the fourth quarter of 2009. Operating margin was 28.2% in the fourth quarter of 2010, compared to 27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of 2009.
Non-GAAP Operating Income. Non-GAAP operating income for the fourth quarter of 2010 was RMB350.5 million (US$53.0 million), compared with RMB329.4 million in the third quarter of 2010 and RMB513.6 million in the fourth quarter of 2009. Non-GAAP operating margin was 30.4% in the fourth quarter of 2010, compared with 30.1% in the third quarter of 2010 and 38.4% in the fourth quarter of 2009.
Government Financial Incentives. Government financial incentives totaled RMB124.8 million (US$18.8 million) in the fourth quarter of 2010, compared with RMB52.0 million in the third quarter of 2010 and RMB76.8 million in the fourth quarter of 2009. The Company's receipt of government financial incentives is subject to time lags and inconsistent government administrative practices relating to timing of payment.
Income Tax Expense. Income tax expense for the fourth quarter of 2010 was RMB87.2 million (US$13.1 million), as compared with RMB75.9 million in the third quarter of 2010 and RMB128.4 million in the fourth quarter of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the fourth quarter of 2010 was RMB366.6 million (US$55.4 million), compared with RMB289.0 million in the third quarter of 2010 and RMB415.2 million in the fourth quarter of 2009. Earnings per diluted ADS in the fourth quarter of 2010 were RMB1.30 (US$0.20), compared with RMB1.02 in the third quarter of 2010 and RMB1.44 in the fourth quarter of 2009.
Non-GAAP Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the fourth quarter of 2010 was RMB392.2 million (US$59.3 million), compared with RMB312.2 million in the third quarter of 2010 and RMB447.2 million in the fourth quarter of 2009. Non-GAAP earnings per diluted ADS in the fourth quarter of 2010 were RMB1.40 (US$0.22), compared with RMB1.10 in the third quarter of 2010 and RMB1.54 in the fourth quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the fourth quarter of 2010 the Company generated RMB604.1 million (US$91.2 million) in cash flow from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash decreased from RMB3,417.8 million as of September 30, 2010 to RMB2,174.8 million (US$328.3 million) as of December 31, 2010. The decrease was primarily a result of moving RMB1,215.2 million (US$183.5 million) to time deposits with maturity exceeding one year and pledge of RMB503.0 million (US$76.0 million) as collateral for a loan, but partially offset by cash flows from operations.
Full Year 2010 Financial Results
Net revenues for the full year 2010 were RMB4,504.7 million (US$680.2 million), representing a 6.3% decrease from RMB4,806.7 million in 2009.
Revenues from MMORPGs for the full year 2010 decreased 9.1% year-over-year to RMB4,018.3 million (US$606.7 million), and revenues from advanced casual games decreased 1.6% year-over-year to RMB300.6 million (US$45.4 million). Other revenues for the year 2010 increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
Gross profit for the full year 2010 was RMB2,667.5 million (US$402.8 million), compared with RMB2,873.2 million in 2009. Gross margin was 59.2% in 2010, compared with 59.8% in 2009.
Operating income for the full year 2010 were RMB1,332.9 million (US$201.3 million), compared with RMB1,734.4 million in 2009. Operating margin was 29.6% in 2010, compared with 36.1% in 2009.
Non-GAAP operating income for the full year 2010 were RMB1,438.8 million (US$217.3 million), compared with RMB1,860.2 million in 2009. Non-GAAP operating margin was 31.9% in 2010, compared with 38.7% in 2009.
Net income attributable to ordinary shareholders for the full year 2010 was RMB1,288.8 million (US$194.6 million), a decrease of 11.3% from RMB1,453.0 million in the full year 2009. Earnings per diluted ADS were RMB4.52 (US$0.68) for the full year 2010, compared with RMB5.20 per diluted ADS for the full year 2009.
Non-GAAP net income attributable to ordinary shareholders for the full year 2010 was RMB1,394.7 million (US$210.6 million), compared with RMB1,578.8 million in the full year 2009. Non-GAAP earnings per diluted ADS were RMB4.90 (US$0.74) for the full year 2010, compared with RMB5.64 for the full year 2009.
Recent Business Highlights
On December 29, 2010, Shanda Games started open-beta testing of "AION: Assault on Balaurea," the 2.0 version of the Company's 3D fantasy MMORPG "AION."
In December 2010 and January 2011, Shanda Games licensed its 3D fantasy MMORPG "Hades Realm II" to Brazil and Thailand. The game has previously been licensed to North America, Singapore, Malaysia, Japan, Korea, Hong Kong, Macau, Taiwan, and parts of Europe.
On January 20, 2011, Shanda Games announced that it received a total of 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference in recognition of Shanda Games' outstanding contributions in the online game industry. Golden Phoenix Awards are issued by China's General Administration of Press and Publication (GAPP) and are considered among the most prestigious awards in China's online game industry.
In January 2011, Shanda Games licensed its 2.5D fantasy MMORPG "Legend of Immortals" to Vietnam.
In February 2011, Shanda Games obtained an exclusive license from Bandai Korea, a subsidiary of a leading Japanese toy making and video game company, Bandai, to operate a 3D MMORPG "Dragon Ball Online" in mainland China. "Dragon Ball Online," adapted from a popular Japanese comic book "Dragon Ball," is one of the most anticipated game titles in the Chinese market according to various major Chinese online game websites.
Share Repurchase
On March 1, 2010, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150 million worth of its outstanding ADSs during the next twenty four (24) months. As of February 28, 2011, the Company has repurchased approximately 6.1 million ADSs for an aggregate consideration of US$37.8 million.
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on March 2, 2010 Beijing/Hong Kong time (8:00 p.m. on March 1, 2010 Eastern Time), to discuss its fourth quarter and annual results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: +1-800-706-7745
Mainland China Netcom
Toll Free: 10800-852-1490
Mainland China Telecom
Toll Free: 10800-152-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-614-3472
Passcode: 60034673
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on March 2, 2011 for 7 days.
U.S. Toll
Free: +1-888-286-8010
International
Toll: +1-617-801-6888
Passcode: 71744900
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars is based on RMB6.6227 to US$1.00 as published by the People's Bank of China on December 31, 2010. The Company makes no representation that the Renminbi or US dollar amounts referred to in this release could have been, or could be, converted into US dollars at such rate or at all. The percentages stated are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2010 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2010. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Company's audited financial statements and this preliminary unaudited financial information.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes non-GAAP financial measures of adjusted net income and adjusted earning per ADS, each of which is adjusted to exclude share-based compensation. The Company believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial statements included with this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this announcement that are not historical facts, including but not limited to statements regarding the long-term growth of the Company, the shift in the Company's revenues to new games, the expansion into global market, the introduction of new game titles, the shift in the Company's titles to a younger game portfolio and the future benefits brought by these new games, represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve various risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include but are not limited to the risk that there are delays in the launch of, or the Company is unable to launch, the games the Company intends to release; such games and any related expansion packs are not well received by users in China; the games fail to meet the expectations of end users; the games that the Company has licensed to partners globally are not well received by end users in these countries and the Company fails to deliver long-term growth, as well as the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Shanda Games
Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.
Shanda Games Reports Fourth Quarter and Full Year 2010 Unaudited Results
Tuesday , March 01, 2011 16:30ET
SHANGHAI, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Financial Highlights
-- Net revenues increased 5.1% quarter-over-quarter and decreased 13.7%
year-over-year to RMB1,152.5 million (US$174.0 million).
-- Massively multi-player online role-playing games (MMORPGs) revenues
increased 7.1% quarter-over-quarter and declined 17.0% year-over-year to
RMB1,040.9 million (US$157.2 million). Active paying accounts (APA) for
MMORPGs increased 3.0% quarter-over-quarter to 9.46 million, and average
monthly revenue per active paying account (ARPU) increased 4.0%
quarter-over-quarter to RMB36.7.
-- Advanced casual games revenues decreased 18.9% quarter-over-quarter and
were essentially flat year-over-year at RMB61.9 million (US$9.3
million). The sequential decline was mainly attributable to a weaker
seasonality effect in the fourth quarter of 2010. APA for advanced
casual games decreased 10.5% quarter-over-quarter to 0.75 million, and
ARPU decreased 9.3% quarter-over-quarter to RMB27.7.
-- Other revenues increased 2.9% quarter-over-quarter and 151.0%
year-over-year to RMB49.7 million (US$7.5 million).
-- Gross profit increased 8.4% quarter-over-quarter and decreased 12.6%
year-over-year to RMB701.0 million (US$105.8 million). Gross margin was
60.8% in the fourth quarter of 2010, up from 59.0% in the third quarter
of 2010 and 60.0% in the fourth quarter of 2009.
-- US GAAP operating income increased 6.1% quarter-over-quarter and
decreased 32.5% year-over-year to RMB324.9 million (US$49.1 million).
Operating margin was 28.2% in the fourth quarter of 2010, compared to
27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of
2009.
-- Non-GAAP operating income, defined as operating income excluding
share-based compensation, increased 6.4% quarter-over-quarter and
decreased 31.8% year-over-year to RMB350.5 million (US$53.0 million).
Non-GAAP( )operating margin was 30.4% in the fourth quarter of 2010,
compared to 30.1% in the third quarter of 2010 and 38.4% in the fourth
quarter of 2009.
-- US GAAP net income attributable to ordinary shareholders increased 26.9%
quarter-over-quarter and decreased 11.7% year-over-year to RMB366.6
million (US$55.4 million). US GAAP earnings per diluted ADS were RMB1.30
(US$0.20), compared to RMB1.02 in the third quarter of 2010 and RMB1.44
in the fourth quarter of 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders increased
25.6% quarter-over-quarter and decreased 12.3% year-over-year to
RMB392.2 million (US$59.3 million). Non-GAAP( )earnings per diluted ADS
were RMB1.40 (US$0.22), compared to RMB1.10 in the third quarter of 2010
and RMB1.54 in the fourth quarter of 2009.
Full Year 2010 Financial Highlights
-- Net revenues decreased 6.3% to RMB4,504.7 million (US$680.2 million)
compared to 2009.
-- MMORPGs revenues decreased 9.1% year-over-year to RMB4,018.3 million
(US$606.7 million). Advanced casual games revenues decreased 1.6%
year-over-year to RMB300.6 million (US$45.4 million). Other revenues
increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
-- US GAAP operating income was RMB1,332.9 million (US$201.3 million) in
2010, compared to RMB1,734.4 million in 2009. Non-GAAP operating income
was RMB1,438.8 million (US$217.3 million) in 2010, compared to
RMB1,860.2 million in 2009.
-- US GAAP net income attributable to ordinary shareholders was RMB1,288.8
million (US$194.6 million), compared to RMB1,453.0 million in 2009. US
GAAP earnings per diluted ADS for 2010 were RMB4.52 (US$0.68), compared
with RMB5.20 in 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders was
RMB1,394.7 million (US$210.6 million), compared to RMB1,578.8 million in
2009. Non-GAAP( )earnings per diluted ADS in 2010 were RMB4.90
(US$0.74), compared with RMB5.64 in 2009.
"Our fourth quarter 2010 results reached the high end of our previous guidance, primarily on the strength of revenues from new games, as we continue to shift toward a younger game portfolio," said Mr. Alan Tan, Chairman and CEO of Shanda Games.
"During the fourth quarter, 'Dragon Nest' continued to gain impressive reception in Mainland China, Japan and Taiwan, making it the most successful recent game release in Asia. We are also encouraged by the favorable launch of 'Hades Realm II' in China in November. In addition, we will continue to bring high quality titles to Chinese gamers, including 'Legend of Immortals,' 'Bubble Fighters,' 'Final Fantasy XIV,' and 'Sudden Attack' and 'Point Blank,' which are the top selling first person shooting games (FPS) in Korea and Indonesia, respectively.
"Additionally, we are seeing an accelerated growth in our international business, driven by successful launches of new titles in overseas markets. We expect to further expand our business geographically to take full advantage of our high-quality titles and operational expertise.
"Our performance in the fourth quarter of 2010 gives us confidence in our competitive position, our capabilities, and our future. Our continuing focus on quality content combined with the spirit of innovation has served us well and laid a solid foundation for a sustainable business as we move into the new year," concluded Mr. Tan.
Fourth Quarter 2010 Financial Results
Net Revenues. Net revenues were RMB1,152.5 million (US$174.0 million), representing an increase of 5.1% from RMB1,096.3 million in the third quarter of 2010 and a decrease of 13.7% from RMB1,336.2 million in the fourth quarter of 2009.
Net revenues from MMORPGs, which represents net MMORPG revenues generated in China, and net revenues from advanced casual games, which represents net advanced casual game revenues generated in China, accounted for 90.3% and 5.4% of total net revenues, respectively. Other revenues, which primarily represents net overseas revenues generated from game licensing, game operations, and advertising, accounted for 4.3% of total net revenues.
Net revenues from MMORPGs were RMB1,040.9 million (US$157.2 million), representing a 7.1% increase from RMB971.7 million in the third quarter of 2010 and a 17.0% decline from RMB1,254.4 million in the fourth quarter of 2009. The sequential increase in revenues was primarily due to the full quarter contribution from Dragon Nest, which was launched in late July 2010. APA for MMORPGs increased 3.0% sequentially to 9.46 million. ARPU for MMORPGs increased 4.0% from RMB35.2 in the preceding quarter to RMB36.7 in the fourth quarter of 2010.
Net revenues from advanced casual games were RMB61.9 million (US$9.3 million), representing a 18.9% decline from RMB76.3 million in the third quarter of 2010 and a 0.2% decline from RMB62.0 million in the fourth quarter of 2009. The sequential decrease in revenue was primarily due to seasonality, for which the third quarter of each year is usually a high season with the summer holidays and ChinaJoy promotions. As a result, APA for advanced casual games decreased 10.5% sequentially to 0.75 million, and ARPU decreased 9.3% sequentially to RMB27.7.
Other revenues in the fourth quarter of 2010 were RMB49.7 million (US$7.5 million), an increase of 2.9% from RMB48.3 million in the third quarter of 2010 and an increase of 151.0% from RMB19.8 million in the fourth quarter of 2009.
Cost of Revenues. Cost of revenues for the fourth quarter of 2010 was RMB451.5 million (US$68.2 million), compared with RMB449.4 million in the third quarter of 2010 and RMB534.3 million in the fourth quarter of 2009.
Gross Profit. Gross profit for the fourth quarter of 2010 was RMB701.0 million (US$105.8 million), representing an 8.4% increase from RMB646.9 million in the third quarter of 2010 and a 12.6% decrease from RMB801.9 million in the fourth quarter of 2009. Gross margin was 60.8% in the fourth quarter of 2010, compared with 59.0% in the third quarter of 2010 and 60.0% in the fourth quarter of 2009. The sequential increase in gross margin was mainly attributable to an increase in revenues generated from in-house games as a percentage of net revenues.
Operating Expenses. Total operating expenses for the fourth quarter of 2010 were RMB376.1 million (US$56.7 million), compared with RMB340.7 million in the third quarter of 2010 and RMB320.3 million in the fourth quarter of 2009. Operating expenses represented 32.6% of net revenues, compared with 31.1% in the third quarter of 2010 and 24.0% in the fourth quarter of 2009.
Research and development expenses increased 17.9% quarter-over-quarter and 30.0% year-over-year to RMB137.2 million (US$20.7 million) in the fourth quarter of 2010. The sequential increase in research and development expenses was mainly due to a full-quarter consolidation of Eyedentity Games' R&D expenses and an increase in R&D headcount during the fourth quarter of 2010. Research and development expenses represented 11.9% of net revenues, compared with 10.6% in the third quarter of 2010 and 7.9% in the fourth quarter of 2009.
Sales and marketing expenses increased 0.7% quarter-over-quarter and 7.1% year-over-year to RMB138.5 million (US$20.9 million) in the fourth quarter of 2010. Sales and marketing expenses represented 12.0% of net revenues, compared with 12.5% in the third quarter of 2010 and 9.7% in the fourth quarter of 2009.
General and administrative expenses increased 15.7% quarter-over-quarter and 17.4% year-over-year to RMB100.4 million (US$15.1 million) in the fourth quarter of 2010. The sequential increase in general and administrative expenses was mainly due to higher rebate of business tax paid by the Company's subsidiaries during the third quarter as well as an increase in share-based compensation expenses in the fourth quarter of 2010. General and administrative expenses accounted for 8.7% of net revenues, compared with 7.9% in the third quarter of 2010 and 6.4% in the fourth quarter of 2009.
Share-based compensation expenses were RMB25.6 million (US$3.9 million) in the fourth quarter of 2010, compared with RMB23.2 million in the third quarter of 2010 and RMB32.0 million in the fourth quarter of 2009.
Operating Income. Operating income for the fourth quarter of 2010 was RMB324.9 million (US$49.1 million), compared with RMB306.2 million in the third quarter of 2010 and RMB481.6 million in the fourth quarter of 2009. Operating margin was 28.2% in the fourth quarter of 2010, compared to 27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of 2009.
Non-GAAP Operating Income. Non-GAAP operating income for the fourth quarter of 2010 was RMB350.5 million (US$53.0 million), compared with RMB329.4 million in the third quarter of 2010 and RMB513.6 million in the fourth quarter of 2009. Non-GAAP operating margin was 30.4% in the fourth quarter of 2010, compared with 30.1% in the third quarter of 2010 and 38.4% in the fourth quarter of 2009.
Government Financial Incentives. Government financial incentives totaled RMB124.8 million (US$18.8 million) in the fourth quarter of 2010, compared with RMB52.0 million in the third quarter of 2010 and RMB76.8 million in the fourth quarter of 2009. The Company's receipt of government financial incentives is subject to time lags and inconsistent government administrative practices relating to timing of payment.
Income Tax Expense. Income tax expense for the fourth quarter of 2010 was RMB87.2 million (US$13.1 million), as compared with RMB75.9 million in the third quarter of 2010 and RMB128.4 million in the fourth quarter of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the fourth quarter of 2010 was RMB366.6 million (US$55.4 million), compared with RMB289.0 million in the third quarter of 2010 and RMB415.2 million in the fourth quarter of 2009. Earnings per diluted ADS in the fourth quarter of 2010 were RMB1.30 (US$0.20), compared with RMB1.02 in the third quarter of 2010 and RMB1.44 in the fourth quarter of 2009.
Non-GAAP Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the fourth quarter of 2010 was RMB392.2 million (US$59.3 million), compared with RMB312.2 million in the third quarter of 2010 and RMB447.2 million in the fourth quarter of 2009. Non-GAAP earnings per diluted ADS in the fourth quarter of 2010 were RMB1.40 (US$0.22), compared with RMB1.10 in the third quarter of 2010 and RMB1.54 in the fourth quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the fourth quarter of 2010 the Company generated RMB604.1 million (US$91.2 million) in cash flow from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash decreased from RMB3,417.8 million as of September 30, 2010 to RMB2,174.8 million (US$328.3 million) as of December 31, 2010. The decrease was primarily a result of moving RMB1,215.2 million (US$183.5 million) to time deposits with maturity exceeding one year and pledge of RMB503.0 million (US$76.0 million) as collateral for a loan, but partially offset by cash flows from operations.
Full Year 2010 Financial Results
Net revenues for the full year 2010 were RMB4,504.7 million (US$680.2 million), representing a 6.3% decrease from RMB4,806.7 million in 2009.
Revenues from MMORPGs for the full year 2010 decreased 9.1% year-over-year to RMB4,018.3 million (US$606.7 million), and revenues from advanced casual games decreased 1.6% year-over-year to RMB300.6 million (US$45.4 million). Other revenues for the year 2010 increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
Gross profit for the full year 2010 was RMB2,667.5 million (US$402.8 million), compared with RMB2,873.2 million in 2009. Gross margin was 59.2% in 2010, compared with 59.8% in 2009.
Operating income for the full year 2010 were RMB1,332.9 million (US$201.3 million), compared with RMB1,734.4 million in 2009. Operating margin was 29.6% in 2010, compared with 36.1% in 2009.
Non-GAAP operating income for the full year 2010 were RMB1,438.8 million (US$217.3 million), compared with RMB1,860.2 million in 2009. Non-GAAP operating margin was 31.9% in 2010, compared with 38.7% in 2009.
Net income attributable to ordinary shareholders for the full year 2010 was RMB1,288.8 million (US$194.6 million), a decrease of 11.3% from RMB1,453.0 million in the full year 2009. Earnings per diluted ADS were RMB4.52 (US$0.68) for the full year 2010, compared with RMB5.20 per diluted ADS for the full year 2009.
Non-GAAP net income attributable to ordinary shareholders for the full year 2010 was RMB1,394.7 million (US$210.6 million), compared with RMB1,578.8 million in the full year 2009. Non-GAAP earnings per diluted ADS were RMB4.90 (US$0.74) for the full year 2010, compared with RMB5.64 for the full year 2009.
Recent Business Highlights
On December 29, 2010, Shanda Games started open-beta testing of "AION: Assault on Balaurea," the 2.0 version of the Company's 3D fantasy MMORPG "AION."
In December 2010 and January 2011, Shanda Games licensed its 3D fantasy MMORPG "Hades Realm II" to Brazil and Thailand. The game has previously been licensed to North America, Singapore, Malaysia, Japan, Korea, Hong Kong, Macau, Taiwan, and parts of Europe.
On January 20, 2011, Shanda Games announced that it received a total of 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference in recognition of Shanda Games' outstanding contributions in the online game industry. Golden Phoenix Awards are issued by China's General Administration of Press and Publication (GAPP) and are considered among the most prestigious awards in China's online game industry.
In January 2011, Shanda Games licensed its 2.5D fantasy MMORPG "Legend of Immortals" to Vietnam.
In February 2011, Shanda Games obtained an exclusive license from Bandai Korea, a subsidiary of a leading Japanese toy making and video game company, Bandai, to operate a 3D MMORPG "Dragon Ball Online" in mainland China. "Dragon Ball Online," adapted from a popular Japanese comic book "Dragon Ball," is one of the most anticipated game titles in the Chinese market according to various major Chinese online game websites.
Share Repurchase
On March 1, 2010, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150 million worth of its outstanding ADSs during the next twenty four (24) months. As of February 28, 2011, the Company has repurchased approximately 6.1 million ADSs for an aggregate consideration of US$37.8 million.
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on March 2, 2010 Beijing/Hong Kong time (8:00 p.m. on March 1, 2010 Eastern Time), to discuss its fourth quarter and annual results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: +1-800-706-7745
Mainland China Netcom
Toll Free: 10800-852-1490
Mainland China Telecom
Toll Free: 10800-152-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-614-3472
Passcode: 60034673
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on March 2, 2011 for 7 days.
U.S. Toll
Free: +1-888-286-8010
International
Toll: +1-617-801-6888
Passcode: 71744900
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars is based on RMB6.6227 to US$1.00 as published by the People's Bank of China on December 31, 2010. The Company makes no representation that the Renminbi or US dollar amounts referred to in this release could have been, or could be, converted into US dollars at such rate or at all. The percentages stated are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2010 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2010. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Company's audited financial statements and this preliminary unaudited financial information.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes non-GAAP financial measures of adjusted net income and adjusted earning per ADS, each of which is adjusted to exclude share-based compensation. The Company believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial statements included with this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this announcement that are not historical facts, including but not limited to statements regarding the long-term growth of the Company, the shift in the Company's revenues to new games, the expansion into global market, the introduction of new game titles, the shift in the Company's titles to a younger game portfolio and the future benefits brought by these new games, represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve various risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include but are not limited to the risk that there are delays in the launch of, or the Company is unable to launch, the games the Company intends to release; such games and any related expansion packs are not well received by users in China; the games fail to meet the expectations of end users; the games that the Company has licensed to partners globally are not well received by end users in these countries and the Company fails to deliver long-term growth, as well as the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Shanda Games
Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.
Shanda Games Reports Fourth Quarter and Full Year 2010 Unaudited Results
Tuesday , March 01, 2011 16:30ET
SHANGHAI, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Financial Highlights
-- Net revenues increased 5.1% quarter-over-quarter and decreased 13.7%
year-over-year to RMB1,152.5 million (US$174.0 million).
-- Massively multi-player online role-playing games (MMORPGs) revenues
increased 7.1% quarter-over-quarter and declined 17.0% year-over-year to
RMB1,040.9 million (US$157.2 million). Active paying accounts (APA) for
MMORPGs increased 3.0% quarter-over-quarter to 9.46 million, and average
monthly revenue per active paying account (ARPU) increased 4.0%
quarter-over-quarter to RMB36.7.
-- Advanced casual games revenues decreased 18.9% quarter-over-quarter and
were essentially flat year-over-year at RMB61.9 million (US$9.3
million). The sequential decline was mainly attributable to a weaker
seasonality effect in the fourth quarter of 2010. APA for advanced
casual games decreased 10.5% quarter-over-quarter to 0.75 million, and
ARPU decreased 9.3% quarter-over-quarter to RMB27.7.
-- Other revenues increased 2.9% quarter-over-quarter and 151.0%
year-over-year to RMB49.7 million (US$7.5 million).
-- Gross profit increased 8.4% quarter-over-quarter and decreased 12.6%
year-over-year to RMB701.0 million (US$105.8 million). Gross margin was
60.8% in the fourth quarter of 2010, up from 59.0% in the third quarter
of 2010 and 60.0% in the fourth quarter of 2009.
-- US GAAP operating income increased 6.1% quarter-over-quarter and
decreased 32.5% year-over-year to RMB324.9 million (US$49.1 million).
Operating margin was 28.2% in the fourth quarter of 2010, compared to
27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of
2009.
-- Non-GAAP operating income, defined as operating income excluding
share-based compensation, increased 6.4% quarter-over-quarter and
decreased 31.8% year-over-year to RMB350.5 million (US$53.0 million).
Non-GAAP( )operating margin was 30.4% in the fourth quarter of 2010,
compared to 30.1% in the third quarter of 2010 and 38.4% in the fourth
quarter of 2009.
-- US GAAP net income attributable to ordinary shareholders increased 26.9%
quarter-over-quarter and decreased 11.7% year-over-year to RMB366.6
million (US$55.4 million). US GAAP earnings per diluted ADS were RMB1.30
(US$0.20), compared to RMB1.02 in the third quarter of 2010 and RMB1.44
in the fourth quarter of 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders increased
25.6% quarter-over-quarter and decreased 12.3% year-over-year to
RMB392.2 million (US$59.3 million). Non-GAAP( )earnings per diluted ADS
were RMB1.40 (US$0.22), compared to RMB1.10 in the third quarter of 2010
and RMB1.54 in the fourth quarter of 2009.
Full Year 2010 Financial Highlights
-- Net revenues decreased 6.3% to RMB4,504.7 million (US$680.2 million)
compared to 2009.
-- MMORPGs revenues decreased 9.1% year-over-year to RMB4,018.3 million
(US$606.7 million). Advanced casual games revenues decreased 1.6%
year-over-year to RMB300.6 million (US$45.4 million). Other revenues
increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
-- US GAAP operating income was RMB1,332.9 million (US$201.3 million) in
2010, compared to RMB1,734.4 million in 2009. Non-GAAP operating income
was RMB1,438.8 million (US$217.3 million) in 2010, compared to
RMB1,860.2 million in 2009.
-- US GAAP net income attributable to ordinary shareholders was RMB1,288.8
million (US$194.6 million), compared to RMB1,453.0 million in 2009. US
GAAP earnings per diluted ADS for 2010 were RMB4.52 (US$0.68), compared
with RMB5.20 in 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders was
RMB1,394.7 million (US$210.6 million), compared to RMB1,578.8 million in
2009. Non-GAAP( )earnings per diluted ADS in 2010 were RMB4.90
(US$0.74), compared with RMB5.64 in 2009.
"Our fourth quarter 2010 results reached the high end of our previous guidance, primarily on the strength of revenues from new games, as we continue to shift toward a younger game portfolio," said Mr. Alan Tan, Chairman and CEO of Shanda Games.
"During the fourth quarter, 'Dragon Nest' continued to gain impressive reception in Mainland China, Japan and Taiwan, making it the most successful recent game release in Asia. We are also encouraged by the favorable launch of 'Hades Realm II' in China in November. In addition, we will continue to bring high quality titles to Chinese gamers, including 'Legend of Immortals,' 'Bubble Fighters,' 'Final Fantasy XIV,' and 'Sudden Attack' and 'Point Blank,' which are the top selling first person shooting games (FPS) in Korea and Indonesia, respectively.
"Additionally, we are seeing an accelerated growth in our international business, driven by successful launches of new titles in overseas markets. We expect to further expand our business geographically to take full advantage of our high-quality titles and operational expertise.
"Our performance in the fourth quarter of 2010 gives us confidence in our competitive position, our capabilities, and our future. Our continuing focus on quality content combined with the spirit of innovation has served us well and laid a solid foundation for a sustainable business as we move into the new year," concluded Mr. Tan.
Fourth Quarter 2010 Financial Results
Net Revenues. Net revenues were RMB1,152.5 million (US$174.0 million), representing an increase of 5.1% from RMB1,096.3 million in the third quarter of 2010 and a decrease of 13.7% from RMB1,336.2 million in the fourth quarter of 2009.
Net revenues from MMORPGs, which represents net MMORPG revenues generated in China, and net revenues from advanced casual games, which represents net advanced casual game revenues generated in China, accounted for 90.3% and 5.4% of total net revenues, respectively. Other revenues, which primarily represents net overseas revenues generated from game licensing, game operations, and advertising, accounted for 4.3% of total net revenues.
Net revenues from MMORPGs were RMB1,040.9 million (US$157.2 million), representing a 7.1% increase from RMB971.7 million in the third quarter of 2010 and a 17.0% decline from RMB1,254.4 million in the fourth quarter of 2009. The sequential increase in revenues was primarily due to the full quarter contribution from Dragon Nest, which was launched in late July 2010. APA for MMORPGs increased 3.0% sequentially to 9.46 million. ARPU for MMORPGs increased 4.0% from RMB35.2 in the preceding quarter to RMB36.7 in the fourth quarter of 2010.
Net revenues from advanced casual games were RMB61.9 million (US$9.3 million), representing a 18.9% decline from RMB76.3 million in the third quarter of 2010 and a 0.2% decline from RMB62.0 million in the fourth quarter of 2009. The sequential decrease in revenue was primarily due to seasonality, for which the third quarter of each year is usually a high season with the summer holidays and ChinaJoy promotions. As a result, APA for advanced casual games decreased 10.5% sequentially to 0.75 million, and ARPU decreased 9.3% sequentially to RMB27.7.
Other revenues in the fourth quarter of 2010 were RMB49.7 million (US$7.5 million), an increase of 2.9% from RMB48.3 million in the third quarter of 2010 and an increase of 151.0% from RMB19.8 million in the fourth quarter of 2009.
Cost of Revenues. Cost of revenues for the fourth quarter of 2010 was RMB451.5 million (US$68.2 million), compared with RMB449.4 million in the third quarter of 2010 and RMB534.3 million in the fourth quarter of 2009.
Gross Profit. Gross profit for the fourth quarter of 2010 was RMB701.0 million (US$105.8 million), representing an 8.4% increase from RMB646.9 million in the third quarter of 2010 and a 12.6% decrease from RMB801.9 million in the fourth quarter of 2009. Gross margin was 60.8% in the fourth quarter of 2010, compared with 59.0% in the third quarter of 2010 and 60.0% in the fourth quarter of 2009. The sequential increase in gross margin was mainly attributable to an increase in revenues generated from in-house games as a percentage of net revenues.
Operating Expenses. Total operating expenses for the fourth quarter of 2010 were RMB376.1 million (US$56.7 million), compared with RMB340.7 million in the third quarter of 2010 and RMB320.3 million in the fourth quarter of 2009. Operating expenses represented 32.6% of net revenues, compared with 31.1% in the third quarter of 2010 and 24.0% in the fourth quarter of 2009.
Research and development expenses increased 17.9% quarter-over-quarter and 30.0% year-over-year to RMB137.2 million (US$20.7 million) in the fourth quarter of 2010. The sequential increase in research and development expenses was mainly due to a full-quarter consolidation of Eyedentity Games' R&D expenses and an increase in R&D headcount during the fourth quarter of 2010. Research and development expenses represented 11.9% of net revenues, compared with 10.6% in the third quarter of 2010 and 7.9% in the fourth quarter of 2009.
Sales and marketing expenses increased 0.7% quarter-over-quarter and 7.1% year-over-year to RMB138.5 million (US$20.9 million) in the fourth quarter of 2010. Sales and marketing expenses represented 12.0% of net revenues, compared with 12.5% in the third quarter of 2010 and 9.7% in the fourth quarter of 2009.
General and administrative expenses increased 15.7% quarter-over-quarter and 17.4% year-over-year to RMB100.4 million (US$15.1 million) in the fourth quarter of 2010. The sequential increase in general and administrative expenses was mainly due to higher rebate of business tax paid by the Company's subsidiaries during the third quarter as well as an increase in share-based compensation expenses in the fourth quarter of 2010. General and administrative expenses accounted for 8.7% of net revenues, compared with 7.9% in the third quarter of 2010 and 6.4% in the fourth quarter of 2009.
Share-based compensation expenses were RMB25.6 million (US$3.9 million) in the fourth quarter of 2010, compared with RMB23.2 million in the third quarter of 2010 and RMB32.0 million in the fourth quarter of 2009.
Operating Income. Operating income for the fourth quarter of 2010 was RMB324.9 million (US$49.1 million), compared with RMB306.2 million in the third quarter of 2010 and RMB481.6 million in the fourth quarter of 2009. Operating margin was 28.2% in the fourth quarter of 2010, compared to 27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of 2009.
Non-GAAP Operating Income. Non-GAAP operating income for the fourth quarter of 2010 was RMB350.5 million (US$53.0 million), compared with RMB329.4 million in the third quarter of 2010 and RMB513.6 million in the fourth quarter of 2009. Non-GAAP operating margin was 30.4% in the fourth quarter of 2010, compared with 30.1% in the third quarter of 2010 and 38.4% in the fourth quarter of 2009.
Government Financial Incentives. Government financial incentives totaled RMB124.8 million (US$18.8 million) in the fourth quarter of 2010, compared with RMB52.0 million in the third quarter of 2010 and RMB76.8 million in the fourth quarter of 2009. The Company's receipt of government financial incentives is subject to time lags and inconsistent government administrative practices relating to timing of payment.
Income Tax Expense. Income tax expense for the fourth quarter of 2010 was RMB87.2 million (US$13.1 million), as compared with RMB75.9 million in the third quarter of 2010 and RMB128.4 million in the fourth quarter of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the fourth quarter of 2010 was RMB366.6 million (US$55.4 million), compared with RMB289.0 million in the third quarter of 2010 and RMB415.2 million in the fourth quarter of 2009. Earnings per diluted ADS in the fourth quarter of 2010 were RMB1.30 (US$0.20), compared with RMB1.02 in the third quarter of 2010 and RMB1.44 in the fourth quarter of 2009.
Non-GAAP Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the fourth quarter of 2010 was RMB392.2 million (US$59.3 million), compared with RMB312.2 million in the third quarter of 2010 and RMB447.2 million in the fourth quarter of 2009. Non-GAAP earnings per diluted ADS in the fourth quarter of 2010 were RMB1.40 (US$0.22), compared with RMB1.10 in the third quarter of 2010 and RMB1.54 in the fourth quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the fourth quarter of 2010 the Company generated RMB604.1 million (US$91.2 million) in cash flow from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash decreased from RMB3,417.8 million as of September 30, 2010 to RMB2,174.8 million (US$328.3 million) as of December 31, 2010. The decrease was primarily a result of moving RMB1,215.2 million (US$183.5 million) to time deposits with maturity exceeding one year and pledge of RMB503.0 million (US$76.0 million) as collateral for a loan, but partially offset by cash flows from operations.
Full Year 2010 Financial Results
Net revenues for the full year 2010 were RMB4,504.7 million (US$680.2 million), representing a 6.3% decrease from RMB4,806.7 million in 2009.
Revenues from MMORPGs for the full year 2010 decreased 9.1% year-over-year to RMB4,018.3 million (US$606.7 million), and revenues from advanced casual games decreased 1.6% year-over-year to RMB300.6 million (US$45.4 million). Other revenues for the year 2010 increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
Gross profit for the full year 2010 was RMB2,667.5 million (US$402.8 million), compared with RMB2,873.2 million in 2009. Gross margin was 59.2% in 2010, compared with 59.8% in 2009.
Operating income for the full year 2010 were RMB1,332.9 million (US$201.3 million), compared with RMB1,734.4 million in 2009. Operating margin was 29.6% in 2010, compared with 36.1% in 2009.
Non-GAAP operating income for the full year 2010 were RMB1,438.8 million (US$217.3 million), compared with RMB1,860.2 million in 2009. Non-GAAP operating margin was 31.9% in 2010, compared with 38.7% in 2009.
Net income attributable to ordinary shareholders for the full year 2010 was RMB1,288.8 million (US$194.6 million), a decrease of 11.3% from RMB1,453.0 million in the full year 2009. Earnings per diluted ADS were RMB4.52 (US$0.68) for the full year 2010, compared with RMB5.20 per diluted ADS for the full year 2009.
Non-GAAP net income attributable to ordinary shareholders for the full year 2010 was RMB1,394.7 million (US$210.6 million), compared with RMB1,578.8 million in the full year 2009. Non-GAAP earnings per diluted ADS were RMB4.90 (US$0.74) for the full year 2010, compared with RMB5.64 for the full year 2009.
Recent Business Highlights
On December 29, 2010, Shanda Games started open-beta testing of "AION: Assault on Balaurea," the 2.0 version of the Company's 3D fantasy MMORPG "AION."
In December 2010 and January 2011, Shanda Games licensed its 3D fantasy MMORPG "Hades Realm II" to Brazil and Thailand. The game has previously been licensed to North America, Singapore, Malaysia, Japan, Korea, Hong Kong, Macau, Taiwan, and parts of Europe.
On January 20, 2011, Shanda Games announced that it received a total of 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference in recognition of Shanda Games' outstanding contributions in the online game industry. Golden Phoenix Awards are issued by China's General Administration of Press and Publication (GAPP) and are considered among the most prestigious awards in China's online game industry.
In January 2011, Shanda Games licensed its 2.5D fantasy MMORPG "Legend of Immortals" to Vietnam.
In February 2011, Shanda Games obtained an exclusive license from Bandai Korea, a subsidiary of a leading Japanese toy making and video game company, Bandai, to operate a 3D MMORPG "Dragon Ball Online" in mainland China. "Dragon Ball Online," adapted from a popular Japanese comic book "Dragon Ball," is one of the most anticipated game titles in the Chinese market according to various major Chinese online game websites.
Share Repurchase
On March 1, 2010, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150 million worth of its outstanding ADSs during the next twenty four (24) months. As of February 28, 2011, the Company has repurchased approximately 6.1 million ADSs for an aggregate consideration of US$37.8 million.
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on March 2, 2010 Beijing/Hong Kong time (8:00 p.m. on March 1, 2010 Eastern Time), to discuss its fourth quarter and annual results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: +1-800-706-7745
Mainland China Netcom
Toll Free: 10800-852-1490
Mainland China Telecom
Toll Free: 10800-152-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-614-3472
Passcode: 60034673
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on March 2, 2011 for 7 days.
U.S. Toll
Free: +1-888-286-8010
International
Toll: +1-617-801-6888
Passcode: 71744900
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars is based on RMB6.6227 to US$1.00 as published by the People's Bank of China on December 31, 2010. The Company makes no representation that the Renminbi or US dollar amounts referred to in this release could have been, or could be, converted into US dollars at such rate or at all. The percentages stated are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2010 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2010. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Company's audited financial statements and this preliminary unaudited financial information.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes non-GAAP financial measures of adjusted net income and adjusted earning per ADS, each of which is adjusted to exclude share-based compensation. The Company believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial statements included with this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this announcement that are not historical facts, including but not limited to statements regarding the long-term growth of the Company, the shift in the Company's revenues to new games, the expansion into global market, the introduction of new game titles, the shift in the Company's titles to a younger game portfolio and the future benefits brought by these new games, represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve various risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include but are not limited to the risk that there are delays in the launch of, or the Company is unable to launch, the games the Company intends to release; such games and any related expansion packs are not well received by users in China; the games fail to meet the expectations of end users; the games that the Company has licensed to partners globally are not well received by end users in these countries and the Company fails to deliver long-term growth, as well as the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Shanda Games
Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.
Shanda Games Reports Fourth Quarter and Full Year 2010 Unaudited Results
Tuesday , March 01, 2011 16:30ET
SHANGHAI, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Financial Highlights
-- Net revenues increased 5.1% quarter-over-quarter and decreased 13.7%
year-over-year to RMB1,152.5 million (US$174.0 million).
-- Massively multi-player online role-playing games (MMORPGs) revenues
increased 7.1% quarter-over-quarter and declined 17.0% year-over-year to
RMB1,040.9 million (US$157.2 million). Active paying accounts (APA) for
MMORPGs increased 3.0% quarter-over-quarter to 9.46 million, and average
monthly revenue per active paying account (ARPU) increased 4.0%
quarter-over-quarter to RMB36.7.
-- Advanced casual games revenues decreased 18.9% quarter-over-quarter and
were essentially flat year-over-year at RMB61.9 million (US$9.3
million). The sequential decline was mainly attributable to a weaker
seasonality effect in the fourth quarter of 2010. APA for advanced
casual games decreased 10.5% quarter-over-quarter to 0.75 million, and
ARPU decreased 9.3% quarter-over-quarter to RMB27.7.
-- Other revenues increased 2.9% quarter-over-quarter and 151.0%
year-over-year to RMB49.7 million (US$7.5 million).
-- Gross profit increased 8.4% quarter-over-quarter and decreased 12.6%
year-over-year to RMB701.0 million (US$105.8 million). Gross margin was
60.8% in the fourth quarter of 2010, up from 59.0% in the third quarter
of 2010 and 60.0% in the fourth quarter of 2009.
-- US GAAP operating income increased 6.1% quarter-over-quarter and
decreased 32.5% year-over-year to RMB324.9 million (US$49.1 million).
Operating margin was 28.2% in the fourth quarter of 2010, compared to
27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of
2009.
-- Non-GAAP operating income, defined as operating income excluding
share-based compensation, increased 6.4% quarter-over-quarter and
decreased 31.8% year-over-year to RMB350.5 million (US$53.0 million).
Non-GAAP( )operating margin was 30.4% in the fourth quarter of 2010,
compared to 30.1% in the third quarter of 2010 and 38.4% in the fourth
quarter of 2009.
-- US GAAP net income attributable to ordinary shareholders increased 26.9%
quarter-over-quarter and decreased 11.7% year-over-year to RMB366.6
million (US$55.4 million). US GAAP earnings per diluted ADS were RMB1.30
(US$0.20), compared to RMB1.02 in the third quarter of 2010 and RMB1.44
in the fourth quarter of 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders increased
25.6% quarter-over-quarter and decreased 12.3% year-over-year to
RMB392.2 million (US$59.3 million). Non-GAAP( )earnings per diluted ADS
were RMB1.40 (US$0.22), compared to RMB1.10 in the third quarter of 2010
and RMB1.54 in the fourth quarter of 2009.
Full Year 2010 Financial Highlights
-- Net revenues decreased 6.3% to RMB4,504.7 million (US$680.2 million)
compared to 2009.
-- MMORPGs revenues decreased 9.1% year-over-year to RMB4,018.3 million
(US$606.7 million). Advanced casual games revenues decreased 1.6%
year-over-year to RMB300.6 million (US$45.4 million). Other revenues
increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
-- US GAAP operating income was RMB1,332.9 million (US$201.3 million) in
2010, compared to RMB1,734.4 million in 2009. Non-GAAP operating income
was RMB1,438.8 million (US$217.3 million) in 2010, compared to
RMB1,860.2 million in 2009.
-- US GAAP net income attributable to ordinary shareholders was RMB1,288.8
million (US$194.6 million), compared to RMB1,453.0 million in 2009. US
GAAP earnings per diluted ADS for 2010 were RMB4.52 (US$0.68), compared
with RMB5.20 in 2009.
-- Non-GAAP( )net income attributable to ordinary shareholders was
RMB1,394.7 million (US$210.6 million), compared to RMB1,578.8 million in
2009. Non-GAAP( )earnings per diluted ADS in 2010 were RMB4.90
(US$0.74), compared with RMB5.64 in 2009.
"Our fourth quarter 2010 results reached the high end of our previous guidance, primarily on the strength of revenues from new games, as we continue to shift toward a younger game portfolio," said Mr. Alan Tan, Chairman and CEO of Shanda Games.
"During the fourth quarter, 'Dragon Nest' continued to gain impressive reception in Mainland China, Japan and Taiwan, making it the most successful recent game release in Asia. We are also encouraged by the favorable launch of 'Hades Realm II' in China in November. In addition, we will continue to bring high quality titles to Chinese gamers, including 'Legend of Immortals,' 'Bubble Fighters,' 'Final Fantasy XIV,' and 'Sudden Attack' and 'Point Blank,' which are the top selling first person shooting games (FPS) in Korea and Indonesia, respectively.
"Additionally, we are seeing an accelerated growth in our international business, driven by successful launches of new titles in overseas markets. We expect to further expand our business geographically to take full advantage of our high-quality titles and operational expertise.
"Our performance in the fourth quarter of 2010 gives us confidence in our competitive position, our capabilities, and our future. Our continuing focus on quality content combined with the spirit of innovation has served us well and laid a solid foundation for a sustainable business as we move into the new year," concluded Mr. Tan.
Fourth Quarter 2010 Financial Results
Net Revenues. Net revenues were RMB1,152.5 million (US$174.0 million), representing an increase of 5.1% from RMB1,096.3 million in the third quarter of 2010 and a decrease of 13.7% from RMB1,336.2 million in the fourth quarter of 2009.
Net revenues from MMORPGs, which represents net MMORPG revenues generated in China, and net revenues from advanced casual games, which represents net advanced casual game revenues generated in China, accounted for 90.3% and 5.4% of total net revenues, respectively. Other revenues, which primarily represents net overseas revenues generated from game licensing, game operations, and advertising, accounted for 4.3% of total net revenues.
Net revenues from MMORPGs were RMB1,040.9 million (US$157.2 million), representing a 7.1% increase from RMB971.7 million in the third quarter of 2010 and a 17.0% decline from RMB1,254.4 million in the fourth quarter of 2009. The sequential increase in revenues was primarily due to the full quarter contribution from Dragon Nest, which was launched in late July 2010. APA for MMORPGs increased 3.0% sequentially to 9.46 million. ARPU for MMORPGs increased 4.0% from RMB35.2 in the preceding quarter to RMB36.7 in the fourth quarter of 2010.
Net revenues from advanced casual games were RMB61.9 million (US$9.3 million), representing a 18.9% decline from RMB76.3 million in the third quarter of 2010 and a 0.2% decline from RMB62.0 million in the fourth quarter of 2009. The sequential decrease in revenue was primarily due to seasonality, for which the third quarter of each year is usually a high season with the summer holidays and ChinaJoy promotions. As a result, APA for advanced casual games decreased 10.5% sequentially to 0.75 million, and ARPU decreased 9.3% sequentially to RMB27.7.
Other revenues in the fourth quarter of 2010 were RMB49.7 million (US$7.5 million), an increase of 2.9% from RMB48.3 million in the third quarter of 2010 and an increase of 151.0% from RMB19.8 million in the fourth quarter of 2009.
Cost of Revenues. Cost of revenues for the fourth quarter of 2010 was RMB451.5 million (US$68.2 million), compared with RMB449.4 million in the third quarter of 2010 and RMB534.3 million in the fourth quarter of 2009.
Gross Profit. Gross profit for the fourth quarter of 2010 was RMB701.0 million (US$105.8 million), representing an 8.4% increase from RMB646.9 million in the third quarter of 2010 and a 12.6% decrease from RMB801.9 million in the fourth quarter of 2009. Gross margin was 60.8% in the fourth quarter of 2010, compared with 59.0% in the third quarter of 2010 and 60.0% in the fourth quarter of 2009. The sequential increase in gross margin was mainly attributable to an increase in revenues generated from in-house games as a percentage of net revenues.
Operating Expenses. Total operating expenses for the fourth quarter of 2010 were RMB376.1 million (US$56.7 million), compared with RMB340.7 million in the third quarter of 2010 and RMB320.3 million in the fourth quarter of 2009. Operating expenses represented 32.6% of net revenues, compared with 31.1% in the third quarter of 2010 and 24.0% in the fourth quarter of 2009.
Research and development expenses increased 17.9% quarter-over-quarter and 30.0% year-over-year to RMB137.2 million (US$20.7 million) in the fourth quarter of 2010. The sequential increase in research and development expenses was mainly due to a full-quarter consolidation of Eyedentity Games' R&D expenses and an increase in R&D headcount during the fourth quarter of 2010. Research and development expenses represented 11.9% of net revenues, compared with 10.6% in the third quarter of 2010 and 7.9% in the fourth quarter of 2009.
Sales and marketing expenses increased 0.7% quarter-over-quarter and 7.1% year-over-year to RMB138.5 million (US$20.9 million) in the fourth quarter of 2010. Sales and marketing expenses represented 12.0% of net revenues, compared with 12.5% in the third quarter of 2010 and 9.7% in the fourth quarter of 2009.
General and administrative expenses increased 15.7% quarter-over-quarter and 17.4% year-over-year to RMB100.4 million (US$15.1 million) in the fourth quarter of 2010. The sequential increase in general and administrative expenses was mainly due to higher rebate of business tax paid by the Company's subsidiaries during the third quarter as well as an increase in share-based compensation expenses in the fourth quarter of 2010. General and administrative expenses accounted for 8.7% of net revenues, compared with 7.9% in the third quarter of 2010 and 6.4% in the fourth quarter of 2009.
Share-based compensation expenses were RMB25.6 million (US$3.9 million) in the fourth quarter of 2010, compared with RMB23.2 million in the third quarter of 2010 and RMB32.0 million in the fourth quarter of 2009.
Operating Income. Operating income for the fourth quarter of 2010 was RMB324.9 million (US$49.1 million), compared with RMB306.2 million in the third quarter of 2010 and RMB481.6 million in the fourth quarter of 2009. Operating margin was 28.2% in the fourth quarter of 2010, compared to 27.9% in the third quarter of 2010 and 36.0% in the fourth quarter of 2009.
Non-GAAP Operating Income. Non-GAAP operating income for the fourth quarter of 2010 was RMB350.5 million (US$53.0 million), compared with RMB329.4 million in the third quarter of 2010 and RMB513.6 million in the fourth quarter of 2009. Non-GAAP operating margin was 30.4% in the fourth quarter of 2010, compared with 30.1% in the third quarter of 2010 and 38.4% in the fourth quarter of 2009.
Government Financial Incentives. Government financial incentives totaled RMB124.8 million (US$18.8 million) in the fourth quarter of 2010, compared with RMB52.0 million in the third quarter of 2010 and RMB76.8 million in the fourth quarter of 2009. The Company's receipt of government financial incentives is subject to time lags and inconsistent government administrative practices relating to timing of payment.
Income Tax Expense. Income tax expense for the fourth quarter of 2010 was RMB87.2 million (US$13.1 million), as compared with RMB75.9 million in the third quarter of 2010 and RMB128.4 million in the fourth quarter of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the fourth quarter of 2010 was RMB366.6 million (US$55.4 million), compared with RMB289.0 million in the third quarter of 2010 and RMB415.2 million in the fourth quarter of 2009. Earnings per diluted ADS in the fourth quarter of 2010 were RMB1.30 (US$0.20), compared with RMB1.02 in the third quarter of 2010 and RMB1.44 in the fourth quarter of 2009.
Non-GAAP Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the fourth quarter of 2010 was RMB392.2 million (US$59.3 million), compared with RMB312.2 million in the third quarter of 2010 and RMB447.2 million in the fourth quarter of 2009. Non-GAAP earnings per diluted ADS in the fourth quarter of 2010 were RMB1.40 (US$0.22), compared with RMB1.10 in the third quarter of 2010 and RMB1.54 in the fourth quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the fourth quarter of 2010 the Company generated RMB604.1 million (US$91.2 million) in cash flow from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash decreased from RMB3,417.8 million as of September 30, 2010 to RMB2,174.8 million (US$328.3 million) as of December 31, 2010. The decrease was primarily a result of moving RMB1,215.2 million (US$183.5 million) to time deposits with maturity exceeding one year and pledge of RMB503.0 million (US$76.0 million) as collateral for a loan, but partially offset by cash flows from operations.
Full Year 2010 Financial Results
Net revenues for the full year 2010 were RMB4,504.7 million (US$680.2 million), representing a 6.3% decrease from RMB4,806.7 million in 2009.
Revenues from MMORPGs for the full year 2010 decreased 9.1% year-over-year to RMB4,018.3 million (US$606.7 million), and revenues from advanced casual games decreased 1.6% year-over-year to RMB300.6 million (US$45.4 million). Other revenues for the year 2010 increased 135.2% year-over-year to RMB185.8 million (US$28.1 million).
Gross profit for the full year 2010 was RMB2,667.5 million (US$402.8 million), compared with RMB2,873.2 million in 2009. Gross margin was 59.2% in 2010, compared with 59.8% in 2009.
Operating income for the full year 2010 were RMB1,332.9 million (US$201.3 million), compared with RMB1,734.4 million in 2009. Operating margin was 29.6% in 2010, compared with 36.1% in 2009.
Non-GAAP operating income for the full year 2010 were RMB1,438.8 million (US$217.3 million), compared with RMB1,860.2 million in 2009. Non-GAAP operating margin was 31.9% in 2010, compared with 38.7% in 2009.
Net income attributable to ordinary shareholders for the full year 2010 was RMB1,288.8 million (US$194.6 million), a decrease of 11.3% from RMB1,453.0 million in the full year 2009. Earnings per diluted ADS were RMB4.52 (US$0.68) for the full year 2010, compared with RMB5.20 per diluted ADS for the full year 2009.
Non-GAAP net income attributable to ordinary shareholders for the full year 2010 was RMB1,394.7 million (US$210.6 million), compared with RMB1,578.8 million in the full year 2009. Non-GAAP earnings per diluted ADS were RMB4.90 (US$0.74) for the full year 2010, compared with RMB5.64 for the full year 2009.
Recent Business Highlights
On December 29, 2010, Shanda Games started open-beta testing of "AION: Assault on Balaurea," the 2.0 version of the Company's 3D fantasy MMORPG "AION."
In December 2010 and January 2011, Shanda Games licensed its 3D fantasy MMORPG "Hades Realm II" to Brazil and Thailand. The game has previously been licensed to North America, Singapore, Malaysia, Japan, Korea, Hong Kong, Macau, Taiwan, and parts of Europe.
On January 20, 2011, Shanda Games announced that it received a total of 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference in recognition of Shanda Games' outstanding contributions in the online game industry. Golden Phoenix Awards are issued by China's General Administration of Press and Publication (GAPP) and are considered among the most prestigious awards in China's online game industry.
In January 2011, Shanda Games licensed its 2.5D fantasy MMORPG "Legend of Immortals" to Vietnam.
In February 2011, Shanda Games obtained an exclusive license from Bandai Korea, a subsidiary of a leading Japanese toy making and video game company, Bandai, to operate a 3D MMORPG "Dragon Ball Online" in mainland China. "Dragon Ball Online," adapted from a popular Japanese comic book "Dragon Ball," is one of the most anticipated game titles in the Chinese market according to various major Chinese online game websites.
Share Repurchase
On March 1, 2010, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150 million worth of its outstanding ADSs during the next twenty four (24) months. As of February 28, 2011, the Company has repurchased approximately 6.1 million ADSs for an aggregate consideration of US$37.8 million.
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on March 2, 2010 Beijing/Hong Kong time (8:00 p.m. on March 1, 2010 Eastern Time), to discuss its fourth quarter and annual results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: +1-800-706-7745
Mainland China Netcom
Toll Free: 10800-852-1490
Mainland China Telecom
Toll Free: 10800-152-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-614-3472
Passcode: 60034673
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on March 2, 2011 for 7 days.
U.S. Toll
Free: +1-888-286-8010
International
Toll: +1-617-801-6888
Passcode: 71744900
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars is based on RMB6.6227 to US$1.00 as published by the People's Bank of China on December 31, 2010. The Company makes no representation that the Renminbi or US dollar amounts referred to in this release could have been, or could be, converted into US dollars at such rate or at all. The percentages stated are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2010 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2010. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Company's audited financial statements and this preliminary unaudited financial information.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes non-GAAP financial measures of adjusted net income and adjusted earning per ADS, each of which is adjusted to exclude share-based compensation. The Company believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial statements included with this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this announcement that are not historical facts, including but not limited to statements regarding the long-term growth of the Company, the shift in the Company's revenues to new games, the expansion into global market, the introduction of new game titles, the shift in the Company's titles to a younger game portfolio and the future benefits brought by these new games, represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve various risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include but are not limited to the risk that there are delays in the launch of, or the Company is unable to launch, the games the Company intends to release; such games and any related expansion packs are not well received by users in China; the games fail to meet the expectations of end users; the games that the Company has licensed to partners globally are not well received by end users in these countries and the Company fails to deliver long-term growth, as well as the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Shanda Games
Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.
Financials continued at ;
http://www.knobias.com/story.htm?eid=3.1.8d91915480c1a8117c67f77226430a5c8c65965ce10689f8595b73d9affb5934
GAME 4Q/full year earnings 3-1-11 AMC
SHANDA GAMES LTD Earnings Conference Call (Q4 2010)
Scheduled to start Tue, Mar 1, 2011, 8:00 pm Eastern
Shanda Games to Report Fourth Quarter and Full Year 2010 Financial Results on March 2, 2011 (Beijing/Hong Kong Time)
4:00 am ET 02/17/2011- PR Newswire
SHANGHAI, Feb. 17, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games") (Nasdaq: GAME), a leading online game developer, operator and publisher in China, will announce its unaudited financial results for the fourth quarter and full year 2010 ended December 31, 2010 on Wednesday, March 2, 2011Beijing/Hong Kong time.
The earnings release will be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Shanda Games' management team will host a conference call on Wednesday, March 2, 2011 at 9:00 am (Beijing/Hong Kong time) / Tuesday, March 1, 2011 at 8:00 pm (Eastern Time) to present an overview of the Company's financial performance and business operations.
Dial-in Numbers:
U.S. Toll Free: +1-800-706-7745
Mainland China Netcom Toll Free: 10800-852-1490
Mainland China Telecom Toll Free: 10800-152-1490
Hong Kong Toll Free: 800-963-844
U.K. Toll Free: 0808-234-7616
International Toll: +1-617-614-3472
Passcode: 60034673
A replay of the conference call will be available from 12:00pm (Beijing/Hong Kong time) on March 2, 2011 for 7 days.
U.S. Toll Free: +1-888-286-8010
International Toll: +1-617-801-6888
Passcode: 71744900
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
About Shanda Games
Shanda Games Limited (Nasdaq: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.
What do u think will be the lowest pont here? Is this teh bottom or is it moving lower?
Shanda Games Receives 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference
Thursday , January 20, 2011 06:03ET
SHANGHAI, Jan. 20, 2011 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games") (Nasdaq: GAME), a leading online game developer, operator and publisher in China, announced today that Shanda Games received a total of 15 Golden Phoenix Awards at the 2010 China Game Industry Annual Conference, held on January 19, 2011, in recognition of Shanda Games' outstanding contributions in the online game industry.
-- Most Influential Figures in China's Game Industry: Alan Qunzhao Tan
(Chairman and CEO of Shanda Games), Tianqiao Chen (Director of Shanda
Games, Chairman and CEO of Shanda Interactive)
-- Top Ten Best Game Operator
-- Top Ten Game Developer
-- Top Ten Most Anticipated Online Game: Legend of Immortals, Final Fantasy
XIV
-- Top Ten Most Popular Online Games: Dragon Nest, The World of Legend
-- Top Ten Most Popular Domestic Games: The World of Legend, Hades Realm II
-- Top Ten Most Popular Casual Games: Maple Story, BnB, Latale
-- Newly Promoted Enterprises in China's Online Game Industry: Shanghai
Hongli Digital Technology Co., Ltd. (Goldcool Games, a subsidiary of
Shanda Games?
-- Newly Promoted Figures in China's Game Industry: Binbin Ge (CEO of
Goldcool Games)
Golden Phoenix Awards are considered among the most prestigious awards in China's online game industry.
Mochi Media Launches First Sponsored Games From Mochi GAME Developer Fund
Wednesday, December 15, 2010 11:16ET
SAN FRANCISCO, CA -- (Marketwire) -- 12/15/10 -- Today, Mochi Media announced the first group of games sponsored by the Mochi GAME Developer Fund. The fund is responsible for more than $400,000 in total commitments to online game developers so far, and launched the first fund games: Planetary Conflict, Toxers, and Feed the King. Snow Fort, the next fund game, will be released soon.
Launched in March 2010, the $10 million Mochi GAME Developer Fund assists game development studios and independent game developers worldwide through sponsorship, licensing and publishing deals. To date, the fund has invested in 20 developers from around the world, including South America, Europe and Southeast Asia. These developers create high-quality, premium games, and with their participation in the fund, they gain additional access to technical, design and testing resources from Mochi Media's parent company, Shanda Games, as well as the development tools and distribution to nearly 40,000 websites globally from Mochi Media.
"This initial group of games that we're launching today is just the start of a multi-year wave of games created by developers that may not have had a chance without the support of this fund," said Justin Wong, GM of the Mochi GAME Fund. "The fund is a shot in the arm to the growing, but still nascent, online game development community."
"From the beginning, our vision for this GAME Developer Fund was to work with talented individuals and give them the opportunity to showcase their talents on a global scale," said Jameson Hsu, CEO of Mochi Media. "We look forward to working with this current group of developers and additional individuals from around the world to bring more high-quality, premium games to the community."
The Mochi GAME Developer Fund is a joint effort between Mochi Media and its parent company, Shanda Games (NASDAQ: GAME), a leading online game developer, operator and publisher in China.
About Mochi Media
Mochi Media is the world's largest browser-based games network, with more than 140 million monthly active users and 15,000 games on nearly 40,000 publisher websites. Mochi Media's game development products and services enable developers to track usage analytics, distribute their games to thousands of websites, and monetize global gameplays via micro-transactions and in-game advertising. The company is headquartered in downtown San Francisco and is a wholly-owned subsidiary of Shanda Games Limited (NASDAQ: GAME).
Shanda Games (GAME) Is Living Off New Releases
10:22 am ET 11/30/2010- StreetInsider
Auriga continues to rate Shanda Games (NASDAQ: GAME) as a Buy with a price target of $7. The company reported a 3Q10 revenue today of $163.6M which was on the high end on the firms guidance range and above the consensus. The higher than expected revenue was due to cutting normal monthly costs and a strong performance from its new releases.
The firm reports that some positives are, "Dragon Nest continues to perform well and the recent release of a new game, Hades Realm II - offset the negatives of AION's setback as well as the decline of Mir II and Woool in 4Q10. For 2011, we believe the company's renewed game pipeline can help diversify the revenue concentration of its older games like Mir II and Woool and put the company back on a growth trajectory."
The company also has a strong list of new games that are scheduled to release within the next few quarters, Hades Realm II, which has already started beta testing on Nov. 26th, Bubble Fighter, Legend of Immortals in 1H2011, and Final Fantasy XIV in 2H2011.
For more ratings news on Shanda Games click here and for the rating history of Shanda Games click here.
Shares of Shanda Games closed at $5.69 yesterday, with a 52 week range of $4.99-$11.49.
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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.
4:35PM Shanda Games misses by $0.03, beats on revs (GAME) 5.69 +0.03 : Reports Q3 (Sep) earnings of $0.15 per ADS, $0.03 worse than the Thomson Reuters consensus of $0.18; revenues fell 4.7% year/year to $163.6 mln vs the $159.6 mln consensus.
http://finance.yahoo.com/marketupdate/inplay#game
Shanda Profit Falls 21%, Missing Estimates, as Online Game Sales Decline
By Mark Lee - Nov 29, 2010 3:58 PM MT
Shanda Games Ltd., China’s second- biggest operator of online games, said third-quarter profit fell 21 percent after the introduction of new titles and upgrades failed to lift revenue.
Net income dropped to 289 million yuan ($43.1 million), from 366.6 million yuan, a year earlier, Shanda Games said in a statement today. This compares with the 328.3 million yuan average of seven analyst estimates compiled by Bloomberg.
Shanda posted its second-straight drop in quarterly sales as the Shanghai-based company struggled to gain players for older games such as “Mir 2” and “World of Legend.” Chinese rivals including Tencent Holding Ltd. and NetEase.com Inc. are boosting spending to offer new titles in the world’s biggest Internet market.
Sales fell 14 percent to 1.1 billion yuan, Shanda said. This followed a 4 percent drop in second-quarter revenue, according to the company’s earnings report in September.
Shanda’s ADRs rose 0.5 percent to $5.69 in New York trading today before the announcement. The stock has declined 44 percent this year, compared with the 2 percent gain in the Hong Kong- traded shares of Tencent, the biggest online game operator in China.
In July, Shanda rolled out “Dragon Nest,” a multi player role-playing game with three-dimensional graphics, after unveiling expansion packs for “Mir 2” in the second quarter.
Shanda Games Reports Third Quarter 2010 Unaudited Results
Monday , November 29, 2010 16:30ET
SHANGHAI, Nov. 29, 2010 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games", or the "Company") (Nasdaq: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the third quarter ended September 30, 2010.
Third Quarter 2010 Financial Highlights(1)
-- Net revenues for the third quarter of 2010 were RMB1,096.3 million
(US$163.6 million), a decline of 1% from RMB1,112.7 million in the
preceding quarter and a decline of 14% from RMB1,272.0 million in the
third quarter of 2009.
-- Net revenues from massively multi-player online role-playing games
(MMORPGs) were RMB971.7 million (US$145.0 million), a decline of 3% from
RMB1,001.1 million and a decline of 17% from RMB1,167.4 million for the
preceding quarter and the third quarter of 2009, respectively. Active
paying accounts (APA) for MMORPGs declined 4.3% sequentially to 9.19
million. Average monthly revenue per active paying account (ARPU) for
MMORPGs increased 1.5% sequentially to RMB35.2.
-- Net revenues from advanced casual games were RMB76.3 million (US$11.4
million), an increase of 9% from RMB70.1 million and a decline of 11%
from RMB85.9 million for the preceding quarter and the third quarter of
2009, respectively. APA for advanced casual games declined 9.7%
sequentially to 0.83 million, and ARPU increased 20.6% sequentially to
RMB30.5.
-- Gross profit was RMB646.9 million (US$96.5 million), compared to
RMB645.6 million in the second quarter of 2010 and RMB754.0 million in
the third quarter of 2009. Gross margin was 59.0% in the third quarter
of 2010, compared to 58.0% in the second quarter of 2010 and 59.3% in
the third quarter of 2009.
-- Operating income was RMB306.2 million (US$45.7 million), compared to
RMB323.6 million in the second quarter of 2010 and RMB421.2 million in
the third quarter of 2009. Operating margin was 27.9%, compared to
29.1% in the second quarter of 2010 and 33.1% in the third quarter of
2009.
-- Non-GAAP(2) operating income was RMB329.4 million (US$49.2 million),
compared with RMB367.8 million in the second quarter of 2010 and
RMB496.6 million in the third quarter of 2009. Non-GAAP operating
margin(2) was 30.1%, compared with 33.1% in the second quarter of 2010
and 39.0% in the third quarter of 2009.
-- GAAP net income attributable to ordinary shareholders was RMB289.0
million (US$43.1 million), compared with RMB304.3 million in the second
quarter of 2010 and RMB366.6 million in the third quarter of 2009.
Earnings per diluted ADS were RMB1.02 (US$0.15), a decrease of 4% from
RMB1.06 in the second quarter of 2010 and a decline of 23% from RMB1.32
in the third quarter of 2009.
-- Non-GAAP net income attributable to ordinary shareholders(2) was
RMB312.2 million (US$46.6 million), compared with RMB348.5 million in
the second quarter of 2010 and RMB442.0 million in the third quarter of
2009. Non-GAAP earnings per diluted ADS(2) were RMB1.10 (US$0.16),
compared with RMB1.22 in the second quarter of 2010 and RMB1.58 in the
third quarter of 2009.
(1) The conversion of Renminbi (RMB) into U.S. dollars in this release is based on RMB6.7011 to US$1.00 as published by the People's Bank of China on September 30, 2010. The percentages stated in this press release are calculated based on the RMB amounts.
(2) Non-GAAP measures are disclosed and reconciled to the corresponding GAAP measures in the section below titled "Non-GAAP Financial Measures."
"In the third quarter we continued our efforts to increase revenue contribution from new games with the introduction of our new 3D action MMORPG, 'Dragon Nest,' in late July. So far, this game has performed well above our expectation," said Mr. Alan Tan, Chairman and CEO of Shanda Games. "This is an important step in our move toward a younger game portfolio. We expect the introduction of new games over the next several quarters will continue to strengthen our game portfolio and help balance our revenue structure. Additionally, we are beginning to see benefits from the acquisition of Dragon Nest's developer, Eyedentity Games, including a strengthening of our in-house development capability and an increase in our international exposure."
"Over the next few quarters we plan to introduce several new games, including 'Hades Realm II,' 'Bubble Fighter' and 'Legend of Immortals'. Additionally, we have formed a strategic partnership with Square Enix, starting with an exclusive right to operate 'FINAL FANTASY XIV' in mainland China."
"Our international business is also expanding and represents a growing percentage of our total revenues. Recently, we licensed 'Hades Realm II' to North America, Japan, Korea and parts of Europe and Southeast Asia, in addition to Hong Kong, Macau and Taiwan. Furthermore, after successful launches in Japan and Korea, 'Dragon Nest' started closed-beta testing in Taiwan recently and has become one of the most popular MMORPGS in the region. We will continue our efforts to expand into the global market as the popularity of online games increases."
"Our achievements during the third quarter demonstrate that we are realizing our growth potential as one of the strongest brands in the online game industry, and we expect our revenue to grow sequentially in the fourth quarter of 2010," concluded Mr. Tan. "We are fortunate to have a winning combination of management and developer talent, an open and innovative business culture, and an integrated platform built to serve the needs of our broad and loyal user base."
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on November 30, 2010 Beijing/Hong Kong time (8:00 p.m. on November 29, 2010 Eastern Time), to discuss its third quarter results. A live webcast of the conference call will be available on the Company's investor relations website at http://ir.shandagames.com.
Third Quarter 2010 Financial Results
Net Revenues. Shanda Games reported net revenues of RMB1,096.3 million (US$163.6 million) in the third quarter of 2010, compared with RMB1,112.7 million in the second quarter of 2010 and RMB1,272.0 million in the third quarter of 2009. Net revenues from MMORPGs, which represents net MMORPG revenues generated in China, and net revenues from advanced casual games, which represents net advanced casual game revenues generated in China, accounted for 88.6% and 7.0% of total net revenues, respectively. Other revenues, which primarily represents net overseas revenues generated from game licensing, game operations, and advertising, accounted for 4.4% of total net revenues.
Beginning in the third quarter of 2010, Shanda Games will book overseas revenues generated from game licensing and game operations, which was previously booked under net revenues from MMORPGs and advanced casual games, as applicable, under 'other revenues'. The year-over-year and quarter-over-quarter comparison of net revenues from MMORPGs, net revenues from advanced casual games, other revenues, APA and ARPU has taken into consideration of the revenue reclassification mentioned above.
Net revenues from MMORPGs were RMB971.7 million (US$145.0 million), representing a 3% decline from RMB1,001.1 million in the second quarter of 2010 and a 17% decline from RMB1,167.4 million in the third quarter of 2009. In the third quarter of 2010, the Company continued its strategy of scaling back on monetization activities in some of its more mature games and focusing on activities that enhances interactions between users. The resulting decline in revenues from its more mature games was partially offset by revenue from Dragon Nest, which was launched in late July 2010. APA for MMORPGs declined 4.3% sequentially to 9.19 million. ARPU for MMORPGs increased 1.5% from RMB34.7 in the preceding quarter to RMB35.2 in the third quarter of 2010.
Net revenues from advanced casual games were RMB76.3 million (US$11.4 million), compared with RMB70.1 million in the second quarter of 2010 and RMB85.9 million in the third quarter of 2009. The sequential increase in revenue was primarily due to seasonality for advanced casual games for which the third quarter of each year is typically a high season with summer holidays. APA for advanced casual games decreased 9.7% sequentially to 0.83 million, and ARPU for advanced casual games increased 20.6% sequentially to RMB30.5 compared to RMB25.3 in the preceding quarter.
Other revenues in the third quarter of 2010 were RMB48.3 million (US$7.2 million), an increase of 16% from RMB41.5 million in the second quarter of 2010 and an increase of 158% from RMB18.7 million in the third quarter of 2009. The sequential increase in the third quarter of 2010 was mainly due to an increase in revenue from games licensed outside of China.
Cost of Revenues. Cost of revenues for the third quarter of 2010 was RMB449.4 million (US$67.1 million), compared with RMB467.1 million in the second quarter of 2010 and RMB518.0 million in the third quarter of 2009. The sequential decrease in cost of revenues was mainly due to a decrease in server software rental fee in the third quarter of 2010. Cost of revenues accounted for 41.0% of net revenues in the third quarter of 2010, compared with 42.0% in the preceding quarter and 40.7% in the same period last year.
Gross Profit. Gross profit for the third quarter of 2010 was RMB646.9 million (US$96.5 million), compared with RMB645.6 million in the second quarter of 2010 and RMB754.0 million in the third quarter of 2009. Gross margin was 59.0% in the third quarter of 2010, compared with 58.0% in the second quarter of 2010 and 59.3% in the third quarter of 2009.
Operating Expenses. Total operating expenses for the third quarter of 2010 were RMB340.7 million (US$50.8 million), compared with RMB322.0 million in the second quarter of 2010 and RMB332.8 million in the third quarter of 2009.
Research and development expenses increased 8% quarter-over-quarter and 41% year-over-year to RMB116.4 million (US$17.4 million) in the third quarter of 2010. The sequential increase in research and development expenses was mainly due to the acquisition of Eyedentity Games and an increase in R&D headcount and salary during the third quarter of 2010. Research and development expenses represented 10.6% of net revenues, compared with 9.7% in the second quarter of 2010 and 6.5% in the third quarter of 2009.
Sales and marketing expenses increased 16% quarter-over-quarter and 12% year-over-year to RMB137.5 million (US$20.5 million) in the third quarter of 2010, primarily due to an increase in advertising expense to promote new games. Sales and marketing expenses represented 12.5% of net revenues, compared with 10.6% in the second quarter of 2010 and 9.6% in the third quarter of 2009.
General and administrative expenses decreased 9% quarter-over-quarter and 32% year-over-year to RMB86.8 million (US$12.9 million) in the third quarter of 2010. The sequential decline in general and administrative expenses was mainly due to a decrease in share-based compensation expense, partially offset by an increase in headcount and salary during the third quarter of 2010. General and administrative expenses accounted for 7.9% of net revenues, compared with 8.6% in the second quarter of 2010 and 10.1% in the third quarter of 2009.
Share-based compensation was RMB23.2 million (US$3.5 million) in the third quarter of 2010, compared with RMB44.2 million in the second quarter of 2010 and RMB75.4 million in the third quarter of 2009. The sequential decrease was primarily due to the net effect of a failure to meet certain performance targets related to stock option awards.
Operating Income. Operating income for the third quarter of 2010 was RMB306.2 million (US$45.7 million), compared with RMB323.6 million in the second quarter of 2010 and RMB421.2 million in the third quarter of 2009. Operating margin was 27.9% in the third quarter of 2010, compared to 29.1% in the second quarter of 2010 and 33.1% in the third quarter of 2009.
Non-GAAP(2) Operating Income. Non-GAAP operating income for the third quarter of 2010 was RMB329.4 million (US$49.2 million), compared with RMB367.8 million in the second quarter of 2010 and RMB496.6 million in the third quarter of 2009. Non-GAAP operating margin was 30.1% in the third quarter of 2010, compared with 33.1% in the second quarter of 2010 and 39.0% in the third quarter of 2009.
Other Income (Expense). Other income for the third quarter of 2010 was RMB48.0 million (US$7.2 million), compared with other expense of RMB4.1 million in the second quarter of 2010 and other income of RMB58.1 million in the third quarter of 2009. The difference in other income (expense) was mainly due to the timing of the receipt of certain government subsidies, which totaled RMB52.0 million (US$7.8 million) in the third quarter of 2010, compared with nil in the second quarter of 2010 and RMB62.8 million in the third quarter of 2009.
Income Tax Expense. Income tax expense for the third quarter of 2010 was RMB75.9 million (US$11.4 million), as compared with RMB27.5 million in the second quarter of 2010 and RMB109.6 million in the third quarter of 2009. The effective tax rate was 20.4% in the third quarter of 2010, compared with 8.2% in the second quarter of 2010 and 22.6% in the third quarter of 2009. During the second quarter of 2010, certain subsidiaries of the Company qualified as a "software development enterprise" and therefore became subject to preferred tax rates retroactively starting from the year 2009. The quarter-over-quarter increase in effective tax rate was primarily due to the reversal recorded in the second quarter of 2010 for the excess tax charge related to the fiscal year 2009 and the first quarter of 2010 as these subsidiaries did not receive approval for the preferred tax status until the second quarter of 2010.
Net Income Attributable to Ordinary Shareholders. Net income for the third quarter of 2010 was RMB289.0 million (US$43.1 million), compared with RMB304.3 million in the second quarter of 2010 and RMB366.6 million in the third quarter of 2009. Earnings per diluted ADS in the third quarter of 2010 were RMB1.02 (US$0.15), compared with RMB1.06 in the second quarter of 2010 and RMB1.32 in the third quarter of 2009.
Non-GAAP(2) Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the third quarter of 2010 was RMB312.2 million (US$46.6 million), compared with RMB348.5 million in the second quarter of 2010 and RMB442.0 million in the third quarter of 2009. Non-GAAP earnings per diluted ADS in the third quarter of 2010 were RMB1.10 (US$0.16), compared with RMB1.22 in the second quarter of 2010 and RMB1.58 in the third quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the third quarter of 2010 the Company generated RMB441.3 million (US$65.9 million) in cash flows from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash increased from RMB3,014.9 million as of June 30, 2010 to RMB3,417.8 million (US$510.0 million) as of September 30, 2010.
Nine Months 2010 Financial Results
Net Revenues. Net revenues for the first nine months of 2010 totaled RMB3,352.2 million (US$500.2 million), a decrease of 3% from RMB3,470.5 million in the same period last year.
Gross Profit. Gross profit for the first nine months of 2010 was RMB1,966.5 million (US$293.5 million), compared with RMB2,071.3 million in the same period last year. Gross margin was 58.7% in the first nine months of 2010, compared to 59.7% in the first nine months of 2009.
Operating Income. Operating income for the first nine months of 2010 was RMB1,007.9 million (US$150.4 million), compared with RMB1,252.7 million in the same period last year. Operating margin was 30.1% in the first nine months of 2010, compared to 36.1% in the first nine months of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the first nine months of 2010 was RMB922.2 million (US$137.6 million), compared with RMB1,037.8 million in the first nine months of 2009. Net margin was 27.5% in the first nine months of 2010, compared with 29.9% in the first nine months of 2009. Earnings per diluted ADS in the first nine months of 2010 were RMB3.22 (US$0.48), compared with RMB3.76 in the first nine months of 2009.
Non-GAAP(2) Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the first nine months of 2010 was RMB1,002.5 million (US$149.6 million), compared with RMB1,131.7 million in the first nine months of 2009. Non-GAAP net margin was 29.9% in the first nine months of 2010, compared with 32.6% in the first nine months of 2009. Non-GAAP earnings per diluted ADS in the first nine months of 2010 were RMB3.50 (US$0.52), compared with RMB4.10 in the first nine months of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. In the first nine months of 2010 the Company generated RMB1,143.3 million (US$170.6 million) in cash flows from operating activities. The Company's cash, cash equivalent, short-term investments, and restricted cash increased from RMB2,611.6 million as of December 31, 2009 to RMB3,417.8 million (US$510.0 million) as of September 30, 2010.
Recent Business Highlights
On September 16, 2010, Shanda Games announced a strategic partnership with Square Enix. The partnership starts with an exclusive license in mainland China to operate 'FINAL FANTASY XIV,' an MMORPG and the latest installment of the FINAL FANTASY franchise, which has sold more than 97 million units worldwide. This will be the first release of a FINAL FANTASY franchise title in mainland China.
In October and November 2010, Shanda Games licensed its 3D fantasy MMORPG 'Hades Realm II' to various countries and regions including North America, Singapore, Malaysia, Japan, Korea and parts of Europe, in addition to Hong Kong, Macau and Taiwan.
On November 25, 2010, Shanda Games started closed-beta testing of its 3D fighting-style casual game 'GetAmped II.'
On November 26, 2010, Shanda Games started closed-beta testing of 'Hades Realm II.'
Share Repurchase
On March 1, 2010, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150 million worth of its outstanding ADSs during the next twenty four (24) months. As of November 26, 2010, the Company has repurchased approximately 5.8 million ADSs for an aggregate consideration of US$36.1 million.
Continued at:
http://www.knobias.com/story.htm?eid=3.1.45b2ad812540366166e7afe7a5952add11cbce2a8bc68c3791d9792c273dbd29
Auriga Likes Shanda Games (GAME) Position in The Game Market, Maintains Buy Rating
12:39 pm ET 11/29/2010- StreetInsider
Shanda Games (NASDAQ: GAME) continues to be rated as a Buy from Auriga before they report their earnings late on November 29th. The firm is keeping their estimates and price target the same, expecting earnings to come in close to current estimates. Their EPS estimate for 2011 is $0.66 and their price target is $7.
The firm reports that they expect the company to report earnings inline or a little above, but do report that three minor problems may influence lower than expected estimates, 1) the decline in Mir II; 2) gamer complaints of AION; and 3) the decline in Woool.
GAME: 3Q earnings 11-29-10 AMC (?)
Shanda Games to Report Third Quarter 2010 Financial Results on November 30, 2010 (Beijing/Hong Kong time)
Monday , November 22, 2010 03:00ET
SHANGHAI, Nov. 22, 2010 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games") (Nasdaq: GAME), a leading online game developer, operator and publisher in China, will announce its unaudited financial results for the third quarter 2010 ended September 30, 2010 on Tuesday, November 30, 2010 Beijing/Hong Kong time.
The earnings release will be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Shanda Games' management team will host a conference call on Tuesday, November 30, 2010 at 9:00 am (Beijing/Hong Kong time) / Monday, November 29, 2010 at 8:00 pm (Eastern Time) to present an overview of the Company's financial performance and business operations.
Dial-in Numbers:
U.S. Toll Free: 1866-850-2201
Mainland China South Toll Free: 10800-120-2770
Mainland China North Toll Free: 10800-712-2725
Hong Kong Toll Free: 800-966-243
U.K. Toll Free: 0800-279-9640
International Toll: +44-(0)20-7784-1036
Passcode: 4614968
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on November 30, 2010 for 7 days.
U.S. Toll Free: 1866-932-5017
International Toll: +44-(0)20-7111-1244
Passcode: 4614968
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
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Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China, with a mission
of becoming a leading global online game media platform. Shanda Games offers a diversified game portfolio, which includes
some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China,
targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house,
co-developed with world-leading game developers, acquired through investments or licensed from third parties.
Shanda Games is mainly engaged in massively multiplayer online role-playing games (MMORPGs). It gained fast growths in revenue
and profit. Its revenue jumped 43% year on year to USD 322 million and net profit leapt 75% year on year to USD 98 million in the first
half of 2009.
Shanda Games Limited (IPO 9/25/09 @12.50)
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