Shanda's subsidiaries contribute to Q3 profit growth
Shanghai. December 2. INTERFAX-CHINA - Shanda Interactive Entertainment Ltd. reported a net profit of RMB 520 million ($76 million), an increase of 49.2 percent year-on-year in the third quarter of 2009, boosted by quick growth among its subsidiaries, according to financial figures released on Dec. 2.
The company reported total revenue of RMB 1.38 billion ($201.99 million) in the third quarter, up 47.7 percent year-on-year.
Shanda's listed online game subsidiary, Shanda Games Ltd., reported total revenues of RMB 1.272 billion ($186 million) during the same period, an increase of 44.9 percent year-on-year. Net profit during the quarter reached RMB 366.6 million ($53.7 million), up 39 percent year-on-year.
Already among the top-ranking online game operators in China, Shanda's user base continued to grow in the third quarter. Active pay users of Shanda Games' MMORPGs (massively multi-player online role-playing games) increased by 6 percent from the previous quarter to hit 9.06 million, while active pay users of casual games increased by 5 percent to 1.21 million as of Sept. 30.
Shanda Online Holdings Ltd., Shanda's advertising and content distribution arm, contributed RMB 283 million ($41.5 million) to Shanda's total revenue between July and September, up 38.5 percent from the amount contributed during the same period of 2008.
Shanda's other business units generated an aggregate total revenue of RMB 133 million ($19.5 million) for the third quarter, up 42.8 percent year-on-year.
Shanda is actively expanding its content production capacity with the launch of a film production unit and its recent acquisition of online music site Hurray and online video site Ku6.