February 26, 2009 Shanda Reports Fourth Quarter and Full Year 2008 Unaudited Results
-Fourth Quarter 2008 Net Revenues Increased 8.4% QoQ to US$148.5 Million, Operating Income Increased 8.3% QoQ to US$60.4 Million, Diluted Earnings per ADS US$0.72
-Full Year 2008 Net Revenues Increased 44.7% YoY to US$522.2 Million, Operating Income Increased 43.9% YoY to US$211.0 Million, Diluted Earnings per ADS US$2.52
Shanghai, China—February 26, 2009—Shanda Interactive Entertainment Limited (NasdaqGS: SNDA), or Shanda, a leading interactive entertainment media company in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2008.
Fourth Quarter 2008 Highlights(1)
• Consolidated net revenues increased 42.1% year-over-year and 8.4% quarter-over-quarter to RMB1,015.2 million (US$148.5 million), compared to the Company’s previous guidance of quarter-over-quarter growth between 5% and 8%. • Revenues from MMORPGs increased 45.1% year-over-year and 13.3% quarter-over-quarter to RMB874.6 million (US$128.0 million). • Revenues from casual games(2) increased 13.3% year-over-year and decreased 18.8% quarter-over-quarter to RMB97.1 million (US$14.2 million) due to seasonality. • Operating income increased 48.1% year-over-year and 8.3% quarter-over-quarter to RMB413.1 million (US$60.4 million). • Non-GAAP(3) net income increased 15.3% year-over-year and 2.4% quarter-over-quarter to RMB356.9 million (US$52.2 million). Non-GAAP earnings per diluted ADS were RMB5.14 (US$0.76), compared with RMB4.20 in the fourth quarter of 2007 and RMB4.78 in the third quarter of 2008. • Net income increased 17.1% year-over-year and 1.7% quarter-over-quarter to RMB342.7 million (US$50.1 million). Earnings per diluted ADS were RMB4.92 (US$0.72), compared with RMB3.98 in the fourth quarter of 2007 and RMB4.62 in the third quarter of 2008. • Active paying accounts (APA) for MMORPGs increased 13.5% quarter-over-quarter to 5.89 million. Average monthly revenue per active paying account (ARPU) for MMORPGs decreased 0.1% quarter-over-quarter to RMB49.5. • APA for casual games(2) decreased 15.2% quarter-over-quarter to 1.50 million. ARPU for casual games(2) decreased 4.3% quarter-over-quarter to RMB21.6.
Full Year 2008 Highlights(1)
• Consolidated net revenues were RMB3,569.1 million (US$522.2 million), representing an increase of 44.7% from 2007. • Revenues from MMORPGs increased 46.1% year-over-year to RMB2,982.3 million (US$436.4 million). • Revenues from casual games(2) increased 33.8% year-over-year to RMB441.0 million (US$64.5 million). • Operating income was RMB1,442.3 million (US$211.0 million), representing an increase of 43.9% from 2007. • Non-GAAP(3) net income was RMB1,304.4 million (US$190.9 million), representing an increase of 26.4% from 2007. Non-GAAP earnings per diluted ADS were RMB18.04 (US$2.64), compared with RMB14.10 per diluted ADS in 2007. • Net income was RMB1,248.4 million (US$182.7 million), compared with net income of RMB1,396.1 million (including a net gain of RMB422.4 million from disposal of SINA shares) in 2007. Earnings per diluted ADS were RMB17.26 (US$2.52), compared with RMB19.08 per diluted ADS in 2007.
(1) The conversion of Renminbi (RMB) into U.S. dollars in this release is based on RMB6.8346 to US$1.00 as published by the People's Bank of China on December 31, 2008. The percentages stated in this press release are calculated based on the RMB amounts. (2) Casual games include advanced casual games, online chess and board game platforms, and e-sports platform. (3) Non-GAAP measures are disclosed below and reconciled to the corresponding GAAP measures in the section below titled "Non-GAAP Financial Measures".
"Despite the global economic weakness, Shanda has achieved another quarter of record results to close out an outstanding year," said Tianqiao Chen, Chairman and Chief Executive Officer of Shanda. "2008 was a prosperous year for Shanda as we achieved solid progress in expanding our content offerings, broadening our operational platform, and opening our resources to our partners. As we look ahead, we are confident that the breadth and depth of our business will lead to a continuous growth for the Company in 2009."
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