Grand Game net profit of the third quarter of 53.9 million dollars year-on-year increase 18.5%

November 18 News, Shanda Games released today as of September 30, 2011 in the third quarter of the unaudited financial report. The report showed that Shanda's net operating income in the third quarter of 2011 amounted to 1.353 billion yuan (USD 213 million), a 23.4% increase from a year earlier, a 2.4% increase from the previous quarter, and a net profit of 343 million yuan (53.9 million US dollars), up 18.5% from a year earlier, Grew by 12.3% over the last quarter.

Main results: Net profit of 53.9 million U.S. dollars year-on-year increase of 18.5%

According to the United States General Accounting Standards (GAAP), Shanda's third-quarter net operating income amounted to 1.353 billion yuan (USD 213 million), a 23.4% increase from a year earlier, a 2.4% increase from the previous quarter, and a net profit of 343 million yuan (53.9 million USD), Grew 18.5% from a year earlier, up 12.3% from the previous quarter.

Gross profit was 830 million yuan (USD 131 million), which grew 28.3% from a year earlier, up 3.6% from the previous quarter, with a gross margin of 61.3% in the third quarter of 2011, 59% in the same period last year and 60.6% in the last quarter. Operating profit is 361 million yuan (56.9 million USD) ), which grew 18% from the same period last year, was roughly flat against the 362 million yuan in the previous quarter; operating margins were 26.7% in the third quarter of 2011, 27.9% in the same period last year and 27.4% in the previous quarter.

Each share (US depository receipts) diluted net income of 1.20 yuan (19 cents), the same period last year, 1.02 Yuan, the last quarter of 1.08 yuan.

According to non-US general Accounting Standards (NON-GAAP), Shanda's net operating income in the third quarter amounted to 1.353 billion yuan (USD 213 million), rising 23.4% from a year earlier, to a record high of 2.4% in the last quarter and a record high of 404 million yuan (63.5 million USD). ) grew by 20.9% over a year earlier, up 9% from the previous quarter.

Gross profit was 859 million yuan (USD 135 million), which grew 28.5% from a year earlier, up 3.5% from the previous quarter, with a gross margin of 63.5% in the third quarter of 2011, 61% in the same period last year and 62.9% in the last quarter. Operating profit is 433 million yuan (68.2 million USD) ), which grew 20.9% from a year earlier, down 0.9% from the previous quarter; operating margins were 32% in the third quarter of 2011, 32.7% in the same period last year and 33.1% in the previous quarter.

Each share (US depository receipts) diluted net income of 1.42 yuan (22 cents), the same period last year, 1.18 Yuan, the last quarter of 1.30 yuan.

Financial Analysis: China's online games revenue 202 million U.S. dollars rose 22.2%

Shanda Games net operating income for China's online games in the third quarter was 1.281 billion yuan (USD 202 million), up 22.2% from the same period last year, 2.7% per cent in the last quarter, and 72.1 million yuan (11.4 million USD) for other income (mainly for overseas business), Grew 49.3% from a year earlier, down 1.4% from the previous quarter.

The average monthly active user (MAU) for Chinese games in the quarter was 21 million, and the previous quarter was 24 million. Mau's quarterly decline was mainly due to one aspect, the company introduced "star Change" in the second quarter of the new Mau, some of the users left the game in the third quarter, this is the new game will experience a normal phenomenon; On the other hand, the "Dragon Valley" was scheduled to launch in July, the information film was postponed to September launch, So that the game's Mau has declined.

The average monthly paid user (MPU) for Chinese games in the quarter was 4.6 million, and the last quarter was 4.4 million. MPU's quarterly rise was mainly due to the introduction of major games in the quarter and the growth of paid subscribers.

The average monthly contribution of each paid user in this quarter (monthly ARPU) is 91.9 yuan, 94.6 yuan in the last quarter.

"The performance in the third quarter of 2011 was in line with expectations," said Tan, chairman and CEO of Shanda Games. The continued growth in revenue is a further indication that the company's strategy to build high-quality product lines, build multiple platforms and expand overseas has begun to bear fruit and we are moving in the right direction. We believe that the effective implementation of the above strategy will continue to promote the development of the company's business, we are full of expectations of future prospects. ”

"Into the fourth quarter, the company continued to work to launch high-quality game products, the new game released at the end of October," Legend 3 "popular, become a" star change "after a successful game. The success of Legend 3 not only enriched the product content, but also demonstrated the company's ability to continuously meet the needs of users through innovation, and to further balance the company's game revenue. In addition to developing innovative and persistent new game products, we will continue to inject new elements into existing games to make them more interesting and more durable. ”

"Looking ahead, Shanda games will remain innovative and forward-looking in the global online gaming industry," he said. The implementation of the ' All-Star ' strategy is gradually showing its growth potential. While trying to build a richer and more high-quality game product line, we will also reduce the entry threshold of PC network games through technology such as light client and Web page, copy the mode of multi-channel content source into mobile game strategy, and gradually promote our products to the whole world. We believe that Shanda games can seize the global game market growth opportunities for the vast number of game users to provide quality game products and services. ”

Teleconference and Webcast

Grand Game management team will be in Beijing/Hong Kong time November 18, 2011 Early 9 o'clock (the United States Eastern Time November 17, 2011 8 o'clock in the evening) conference call to report the company's financial and operating conditions. The telephone access code is as follows:

USA Free: 1866-519-4004

China Mobile Access free: 400-620-8038

China fixed-line access free: 800-819-0121

Hong Kong Free: 800-930-346

UK free: 0808-234-6646

International Fee: +65-6723-9381

Password: 26588230

From Beijing/Hong Kong Time November 18 Noon 12 o'clock, investors can call the following telephone conference call recordings, valid for 7 days:

USA Free: 1866-214-5335

International Fee: +61-2-8235-5000

Password: 26588230

Online live and replay of teleconferencing can also be heard in the Investor Relations section of Shanda Gaming website http://ir.shandagames.com/.