Shanda Games (fka GAME)

[eastunder]

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.