Shanda Games Reports Fourth Quarter and Full Year 2009
Unaudited Results
GlobeNewswire
2010-03-01
09Q4 Net Revenues Increased 39% YoY and 5% QoQ to US$195.7 Million, Net
Income Increased 44% YoY and 13% QoQ to US$60.8 Million, Diluted
Earnings per ADS US$0.20
Full Year 2009 Net Revenues Increased 42% YoY to US$704.0 Million, Net
Income Increased 55%YoY to US$212.8 Million, Diluted Earnings per ADS
US$0.76
SHANGHAI, China, Feb. 28, 2010 (GLOBE NEWSWIRE) -- 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, 2009.
Fourth Quarter 2009 Financial Highlights(1)
-- Net revenues increased 39% year-over-year and 5% quarter-over-quarter to
a record high of RMB1,336.2 million (US$195.7 million).
-- Massively multi-player online role-playing games (MMORPGs) revenues
increased 44% year-over-year and 8% quarter-over-quarter to RMB1,270.2
million (US$186.0 million). Active paying accounts (APA) increased 4%
quarter-over-quarter to 9.42 million, and average monthly revenue per
active paying account (ARPU) increased 4% quarter-over-quarter to
RMB45.0.
-- Advanced casual games revenues decreased 14% year-over-year and 28%
quarter-over-quarter to RMB63.3 million (US$9.3 million). The sequential
decline was mainly attributable to the seasonality effect in the fourth
quarter of 2009. As a result, APA decreased 16% quarter-over-quarter to
1.01 million, and ARPU decreased 14% quarter-over-quarter to RMB20.8.
-- U.S. GAAP operating income increased 33% year-over-year and 14%
quarter-over-quarter to RMB481.6 million (US$70.5 million). Operating
margin was 36.0% in the fourth quarter of 2009, compared to 37.8% in the
fourth quarter of 2008 and 33.1% in the third quarter of 2009.
-- Non-GAAP(2) operating income, defined as operating income excluding
share-based compensation, increased 39% year-over-year and 3%
quarter-over-quarter to RMB513.6 million (US$75.2 million). Non-GAAP
operating margin was 38.4% in the fourth quarter of 2009, compared with
38.5% in the fourth quarter of 2008 and 39.0% in the third quarter of
2009.
-- U.S. GAAP net income attributable to ordinary shareholders increased 44%
year-over-year and 13% quarter-over-quarter to RMB415.2 million (US$60.8
million). U.S. GAAP earnings per diluted ADS were RMB1.44 (US$0.20),
compared with RMB1.04 in the fourth quarter of 2008 and RMB1.32 in the
third quarter of 2009.
-- Non-GAAP(2) net income attributable to ordinary shareholders increased
52% year-over-year and 1% quarter-over-quarter to RMB447.2 million
(US$65.5 million). Non-GAAP earnings per diluted ADS were RMB1.54
(US$0.22), compared with RMB1.08 in the fourth quarter of 2008 and
RMB1.58 in the third quarter of 2009.
Full Year 2009 Financial Highlights(1)
-- Net revenues increased 42% to RMB4,806.7 million (US$704.0 million)
compared to 2008.
-- MMORPGs revenues increased 50% to RMB4,476.7 million (US$655.6 million)
compared to 2008. Advanced casual games revenues decreased 14% to
RMB310.4 million (US$45.5 million) compared to 2008.
-- U.S. GAAP operating income increased 50% to RMB1,734.4 million (US$254.0
million) compared to 2008. Operating margin increased from 34.3% in 2008
to 36.1% in 2009.
-- Non-GAAP(2) operating income increased 58% to RMB1,860.2 million
(US$272.4 million) compared to 2008. Non-GAAP(2) operating margin
increased from 34.9% in 2008 to 38.7% in 2009.
-- U.S. GAAP net income attributable to ordinary shareholders increased 55%
to RMB1,453.0 million (US$212.8 million). U.S. GAAP earnings per diluted
ADS for 2009 were RMB5.20 (US$0.76), up 53% from RMB3.40 in 2008.
-- Non-GAAP(2) net income attributable to ordinary shareholders increased
65% to RMB1,578.8 million (US$231.2 million) compared to 2008. Non-GAAP
earnings per diluted ADS in 2009 were RMB5.64 (US$0.82), up 62% from
RMB3.48 in 2008.
(1) The conversion of Renminbi (RMB) into U.S. dollars in this release
is based on RMB6.8282 to US$1.00 as published by the People's Bank of
China on December 31, 2009. 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".
"Fiscal year 2009 closed with another quarter of solid results as
Shanda Games' portfolio continued to show strong performance," said Mr.
Alan Tan, Chairman and CEO of Shanda Games. "Looking into 2010, while
continuing to focus on enhancing our existing game titles, we also look
forward to the launch of a series of new games later this year to
expand our user base and depth of content. Additionally, we will
continue our efforts to improve R&D capabilities and enhance operating
efficiency, driving innovation for future growth. With a deep bench of
talent and clear strategy for growth, we are confident in Shanda Games'
long-term potential."
Mr. Tan added, "Moreover, with the acquisition of Mochi Media, we look
forward to enhancing our user base, expanding our content offering, and
developing new revenue streams. The integration of Mochi Media's
business is well underway and we are focused on facilitating a smooth
process."
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on March 1, 2010
Beijing/Hong Kong time (8:00 p.m. on February 28, 2010 Eastern Time),
to discuss its fourth quarter and annual results. A live webcast of the
conference call will be available on the Company's investor relations
website at http://ir.shandagames.com.
Fourth Quarter 2009 Financial Results(1)
Net Revenues. In the fourth quarter of 2009, Shanda Games reported net
revenues of RMB1,336.2 million (US$195.7 million), representing an
increase of 39% from RMB958.4 million in the fourth quarter of 2008 and
5% from RMB1,272.0 million in the third quarter of 2009.
Net revenues from MMORPGs were RMB1,270.2 million (US$186.0 million),
representing an increase of 44% from RMB880.3 million in the fourth
quarter of 2008 and 8% from RMB1,180.5 million in the third quarter of
2009. The sequential increase in MMORPG revenues was primarily driven
by the continued growth of existing games and the full quarter
contribution of Mir II Return, which was introduced in late third
quarter of 2009. The number of APA for MMORPGs increased 4%
sequentially to 9.42 million, and ARPU for MMORPGs increased 4%
sequentially to RMB45.0.
Net revenues from advanced casual games were RMB63.3 million (US$9.3
million), representing a decrease of 14% from RMB73.6 million in the
fourth quarter of 2008 and 28% from RMB87.4 million in the third
quarter of 2009. The year-over-year decline was primarily due to
declines in the Company's two leading advanced casual games, one of
which is now in the mature phase of its life cycle and the other which
did not benefit from an expansion pack until December 2009. The
quarter-over-quarter decline was primarily due to seasonality in
advanced casual games for which the third quarter of each year is
usually a high season with the summer holidays and ChinaJoy promotions.
As a result, the number of APA for advanced casual games decreased 16%
sequentially to 1.01 million, and ARPU decreased 14% sequentially to
RMB20.8.
Other revenues in the fourth quarter of 2009 were RMB2.7 million
(US$0.4 million), compared with RMB4.5 million in the fourth quarter of
2008 and RMB4.1 million in the third quarter of 2009.
Cost of Revenues. Cost of revenues for the fourth quarter of 2009 was
RMB534.3 million (US$78.3 million), representing a 39% increase from
RMB383.8 million in the fourth quarter of 2008 and a 3% increase from
RMB518.0 million in the third quarter of 2009. Cost of revenues as a
percentage of net revenues remained relatively flat at 40.0% in the
fourth quarter of 2009, compared with 40.0% in the same period last
year and 40.7% in the preceding quarter.
Gross Profit. Gross profit for the fourth quarter of 2009 was RMB801.9
million (US$117.4 million), representing a 40% increase from RMB574.6
million in the fourth quarter of 2008 and a 6% increase from RMB754.0
million in the third quarter of 2009. Gross margin was 60.0% in the
fourth quarter of 2009, compared with 60.0% in the fourth quarter of
2008 and 59.3% in the third quarter of 2009.
Operating Expenses. Total operating expenses for the fourth quarter of
2009 were RMB320.3 million (US$46.9 million), an increase of 51% from
RMB212.0 million in the fourth quarter of 2008 and a decrease of 4%
from RMB332.8 million in the third quarter of 2009. The sequential
decrease in operating expenses was mainly due to a decline in
share-based compensation expense, partially offset by an increase in
research and development expenses as the Company increased bonuses for
developers during the fourth quarter of 2009.
Share-based compensation was RMB32.0 million (US$4.7 million) in the
fourth quarter of 2009, compared with RMB6.4 million in the fourth
quarter of 2008 and RMB75.4 million in the third quarter of 2009. The
quarter-over-quarter decline in share-based compensation was primarily
due to the recognition of an accumulated expense upon the consummation
of the Company's initial public offering during the third quarter.
In the fourth quarter of 2009, operating expenses represented 24.0% of
revenues, compared with 22.1% in the fourth quarter of 2008 and 26.2%
in the third quarter of 2009. Excluding share-based compensation
expenses, operating expenses represented 21.6% of revenues in the
fourth quarter of 2009, compared with 21.5% in the fourth quarter of
2008 and 20.2% in the third quarter of 2009.
Operating Income. Operating income for the fourth quarter of 2009 was
RMB481.6 million (US$70.5 million), representing a 33% increase from
RMB362.6 million in the fourth quarter of 2008 and a 14% increase from
RMB421.2 million in the third quarter of 2009. Operating margin was
36.0% in the fourth quarter of 2009, compared to 37.8% in the fourth
quarter of 2008 and 33.1% in the third quarter of 2009.
Non-GAAP(2) Operating Income. Non-GAAP operating income for the fourth
quarter of 2009 was RMB513.6 million (US$75.2 million), compared with
RMB369.0 million in the fourth quarter of 2008 and RMB496.6 million in
the third quarter of 2009. Non-GAAP operating margin was 38.4% in the
fourth quarter of 2009, compared with 38.5% in the fourth quarter of
2008 and 39.0% in the third quarter of 2009.
Other Income. Other income for the fourth quarter of 2009 was RMB73.3
million (US$10.7 million), compared with RMB2.2 million in the fourth
quarter of 2008 and RMB58.1 million in the third quarter of 2009,
primarily due to an increase in government subsidies received during
the fourth quarter of 2009. Government subsidies totaled RMB76.8
million (US$11.2 million) in the fourth quarter of 2009, compared with
RMB1.8 million in the fourth quarter of 2008 and RMB62.8 million in the
third quarter of 2009.
Income Tax Expense. Income tax expense for the fourth quarter of 2009
was RMB128.4 million (US$18.8 million), as compared with RMB79.5
million in the fourth quarter of 2008 and RMB109.6 million in the third
quarter of 2009.
Net Income Attributable to Ordinary Shareholders. Net income for the
fourth quarter of 2009 was RMB415.2 million (US$60.8 million), an
increase of 44% from RMB288.1 million in the fourth quarter of 2008 and
an increase of 13% from RMB366.6 million in the third quarter of 2009.
Earnings per diluted ADS in the fourth quarter of 2009 were RMB1.44
(US$0.20), which represents increases of 38% and 9% respectively from
RMB1.04 in the fourth quarter of 2008 and RMB1.32 in the third quarter
of 2009.
Non-GAAP(2) Net Income Attributable to Ordinary Shareholders. Non-GAAP
net income for the fourth quarter of 2009 was RMB447.2 million (US$65.5
million), compared with RMB294.5 million in the fourth quarter of 2008
and RMB442.0 million in the third quarter of 2009. Non-GAAP earnings
per diluted ADS in the fourth quarter of 2009 were RMB1.54 (US$0.22),
compared with RMB1.08 in the fourth quarter of 2008 and RMB1.58 in the
third quarter of 2009.
Cash, Cash Equivalent, Short-Term Investments, and Restricted Cash. The
Company's cash, cash equivalent, short-term investments, and restricted
cash increased from RMB863.5 million as of December 31, 2008 to
RMB2,611.6 million (US$382.5 million) as of December 31, 2009.
Full Year 2009 Financial Results
Net revenues for the full year 2009 were RMB4,806.7 million (US$704.0
million), representing an increase of 42% from RMB3,376.8 million in
2008.
Revenues from MMORPGs for the full year 2009 increased 50%
year-over-year to RMB4,476.7 million (US$655.6 million), while revenues
from advanced casual games decreased 14% year-over-year to RMB310.4
million (US$45.5 million).
Gross profit for the full year 2009 increased 52% year-over-year to
RMB2,873.2 million (US$420.8 million). Gross margin was up from 55.9%
in 2008 to 59.8% in 2009.
Operating income for the full year 2009 increased 50% year-over-year to
RMB1,734.4 million (US$254.0 million). Operating margin was up from
34.3% in 2008 to 36.1% in 2009.
Net income attributable to ordinary shareholders for the full year 2009
was RMB1,453.0 million (US$212.8 million), an increase of 55% from
RMB935.5 million in the full year 2008. Earnings per diluted ADS were
RMB5.20 (US$0.76) for the full year 2009, an increase of 53% from
RMB3.40 per diluted ADS for the full year 2008.
Non-GAAP net income attributable to ordinary shareholders for the full
year 2009 was RMB1,578.8 million (US$231.2 million), an increase of 65%
from RMB956.3 million in the full year 2008. Non-GAAP earnings per
diluted ADS were RMB5.64 (US$0.82) for the full year 2009, an increase
of 62% from RMB3.48 for the full year 2008.
Recent Business Highlights
On December 5, 2009, Shanda Games began closed-beta testing for MMORPG
"Woool: Legend of Heros," a sequel for one of the Company's legacy
games "Woool."
On December 18, 2009, Shanda Games started open-beta testing of "TS2
Online," the Company's first turn-based MMORPG. "TS2 Online" is based
upon the popular Chinese novel "The Romance of Three Kingdoms," one of
the four classic novels in China.
On January 8, Shanda Games announced the acquisition of Goldcool Games,
a Shanghai-based online game developer and operator. Goldcool Games
currently operates three MMORPGs, namely "Hades Realm," "Dukes and
Lords," and "Zodiac Tales," and has several MMORPGs in the pipeline,
including "Hades Realm II," "Dragon Heir," and "Zodiac Tales Side
Story."
On January 8, Shanda Games obtained an exclusive license from Nexon
Corporation, a leading game developer in Korea, to operate its
shooting-based casual game "Bubble Fighter" in mainland China. "Bubble
Fighter" continues the adventures of the primary characters from the
world-renowned casual games "BnB" and "KartRider."
On January 8, Shanda Games obtained an exclusive license to operate the
fantasy 2D MMORPG "Mir III" in mainland China.
On January 12, Shanda Games announced an agreement to acquire Mochi
Media, Inc., a leading platform for distributing and monetizing
browser-based games worldwide.
Share Repurchase
The Company's Board of Directors has approved a share repurchase
program. Under the program, the Company is authorized to repurchase up
to $150 million worth of its outstanding American Depositary Shares
representing the ordinary shares of the Company from time to time over
the next twenty four (24) months, depending on market conditions, share
price and other factors, as well as subject to the relevant rules under
United States securities regulations. The share repurchases may be made
on the open market, in block trades or otherwise and may include
derivative transactions. The program may be suspended or discontinued
at any time.
Note to the Financial Information
The unaudited financial information disclosed above 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, 2009 is still in progress. Adjustments to these preliminary
financial statements may be identified during the audit, which could
result in significant differences from 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
success of any existing or future acquisitions or investments, the
introduction of expansion packs to existing titles, the introduction
and timing of new game titles, the future benefits brought by these new
games and the future benefits brought by Mochi Media's acquisition,
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 localization
and/or development of the MMORPGs and advanced casual games Shanda
Games intends to release, the risk that such MMORPGs and advanced
casual games, and any related expansion packs, are not well received by
users in China, the risk that the games fail to be commercialized or
the commercialized results fail to meet the expectations of end users,
the risk that the Company fails to deliver long-term growth, the risk
that the Company does not recognize the expected benefits or synergies
from the acquisition of Mochi Media, and the risks set forth in the
Company's filings with the U.S. Securities and Exchange Commission,
including the Company's Registration Statement on form F-1. 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 LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
As of
December As of December
31, 31,
2008 2009
-------- ---------------
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 628.9 1,799.1 263.5
Restricted cash -- 54.5 8.0
Short-term investments. 234.6 758.0 111.0
Marketable securities 2.8 9.2 1.3
Accounts receivable, net of
allowance for doubtful
accounts 7.3 18.5 2.7
Accounts receivable due
from related parties 433.3 405.9 59.4
Deferred licensing fees and
related costs 51.3 53.6 7.8
Prepayments and other
current assets 48.8 112.8 16.6
Due from related parties
(OR) 105.3 6.2 0.9
Deferred tax assets 70.4 79.6 11.7
-------- -------- -----
Total current assets 1,582.7 3,297.4 482.9
-------- -------- -----
Investment in affiliated
companies 23.5 8.7 1.3
Property and equipment 93.0 139.8 20.5
Intangible assets 409.0 517.2 75.7
Goodwill 116.5 170.1 24.9
Long-term deposits 50.4 64.8 9.5
Other long term assets 134.3 113.4 16.6
Non-current deferred tax
assets 34.7 16.1 2.4
-------- -------- -----
Total assets 2,444.1 4,327.5 633.8
======== ======== =====
LIABILITIES
Current liabilities:
Short-term borrowings -- 15.0 2.2
Accounts payable 19.7 27.3 4.0
Accounts payable due to
related parties 75.4 70.8 10.4
Licensing fees payable 203.2 224.5 32.9
Taxes payable 88.0 142.5 20.9
Deferred revenue 329.7 250.9 36.7
Other payables and accruals 155.4 433.5 63.5
Other payables due to
related parties 262.7 19.9 2.9
Deferred tax liabilities 43.9 76.6 11.2
-------- -------- -----
Total current liabilities 1,178.0 1,261.0 184.7
-------- -------- -----
Long-term liability -- 6.1 0.9
Non-current deferred tax
liabilities 28.5 31.2 4.6
Non-current deferred revenue 1.7 3.5 0.5
-------- -------- -----
Total liabilities 1,208.2 1,301.8 190.7
-------- -------- -----
Shareholders' Equity
Ordinary shares 40.2 42.0 6.2
Additional paid-in capital 477.3 1,229.2 180.0
Statutory reserves 113.9 127.0 18.6
Accumulated other
comprehensive gain (87.0) (58.6) (8.7)
Retained earnings 552.6 1,480.2 216.8
-------- -------- -----
Total Shanda Games Limited
shareholders' equity 1,097.0 2,819.8 412.9
Non-controlling interests 138.9 205.9 30.2
-------- -------- -----
Total shareholders' equity 1,235.9 3,025.7 443.1
-------- -------- -----
Total liabilities and
shareholders' equity 2,444.1 4,327.5 633.8
======== ======== =====
SHANDA GAMES LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for share and per share data)
For the three months period ended,
--------------------------------------------------
December September
31, 30,
2008 2009 December 31, 2009
RMB RMB RMB US$
Net revenues:
Online MMORPGs game revenues 880.3 1,180.5 1,270.2 186.0
Online casual game revenues 73.6 87.4 63.3 9.3
Other revenues 4.5 4.1 2.7 0.4
----------- ----------- ----------- -----------
Total net revenues 958.4 1,272.0 1,336.2 195.7
----------- ----------- ----------- -----------
Cost of revenues (383.8) (518.0) (534.3) (78.3)
----------- ----------- ----------- -----------
Gross profit 574.6 754.0 801.9 117.4
----------- ----------- ----------- -----------
Operating expenses:
Product development (70.2) (82.3) (105.5) (15.5)
Sales and marketing (74.2) (122.3) (129.3) (18.9)
General and administrative (67.6) (128.2) (85.5) (12.5)
----------- ----------- ----------- -----------
Total operating expenses (212.0) (332.8) (320.3) (46.9)
----------- ----------- ----------- -----------
Income from operations 362.6 421.2 481.6 70.5
Interest income 5.5 6.3 8.5 1.2
Other income, net 2.2 58.1 73.3 10.7
----------- ----------- ----------- -----------
Income before income tax
expenses, equity in
affiliated companies, and
minority interests 370.3 485.6 563.4 82.4
Income tax expenses (79.5) (109.6) (128.4) (18.8)
Equity in earning (loss) of
affiliated companies 0.7 (2.4) (17.4) (2.5)
----------- ----------- ----------- -----------
Net income 291.5 373.6 417.6 61.1
Less: Net income attributable
to non-controlling interests (3.4) (7.0) (2.4) (0.3)
----------- ----------- ----------- -----------
Net income attributable to
ordinary shareholders 288.1 366.6 415.2 60.8
=========== =========== =========== ===========
Earnings per ordinary share
Basic 0.52 0.67 0.72 0.11
Diluted 0.52 0.66 0.72 0.1
Earnings per ADS
Basic 1.04 1.34 1.44 0.22
Diluted 1.04 1.32 1.44 0.20
Weighted average ordinary
shares outstanding
Basic 550,000,000 550,283,554 576,087,000 576,087,000
Diluted 550,000,000 558,265,544 580,037,606 580,037,606
Weighted average ADS
outstanding
Basic 275,000,000 275,141,777 288,043,500 288,043,500
Diluted 275,000,000 279,132,772 290,018,803 290,018,803
Reconciliation From Non-GAAP
measures to GAAP measures
Non-GAAP Operation income 369.0 496.6 513.6 75.2
Share-based compensation cost (6.4) (75.4) (32.0) (4.7)
GAAP Operation income 362.6 421.2 481.6 70.5
Non-GAAP net income
attributable to ordinary
shareholders 294.5 442.0 447.2 65.5
Share-based compensation cost (6.4) (75.4) (32.0) (4.7)
GAAP net income attribute to
ordinary shareholders 288.1 366.6 415.2 60.8
Non-GAAP diluted earnings per
share 0.54 0.79 0.77 0.11
Share-based compensation cost
per share (0.02) (0.13) (0.05) (0.01)
----------- ----------- ----------- -----------
GAAP diluted earnings per
share 0.52 0.66 0.72 0.10
=========== =========== =========== ===========
Non-GAAP diluted earnings per
ADS 1.08 1.58 1.54 0.22
Share-based compensation cost
per ADS (0.04) (0.26) (0.10) (0.02)
----------- ----------- ----------- -----------
GAAP diluted earnings per ADS 1.04 1.32 1.44 0.20
=========== =========== =========== ===========
SHANDA GAMES LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for share and per share data)
For the year ended,
-------------------------------------
December
31, December 31,
2008 2009
----------- ------------------------
RMB RMB US$
Net revenues:
Online MMORPGs game revenues 2,987.8 4,476.7 655.6
Online casual game revenues 358.9 310.4 45.5
Other revenues 30.1 19.6 2.9
----------- ----------- -----------
Total net revenues 3,376.8 4,806.7 704.0
----------- ----------- -----------
Cost of revenues (1,489.4) (1,933.5) (283.2)
----------- ----------- -----------
Gross profit 1,887.4 2,873.2 420.8
Operating expenses:
Product development (238.8) (339.8) (49.8)
Sales and marketing (204.5) (432.9) (63.4)
General and administrative (287.2) (366.1) (53.6)
----------- ----------- -----------
Total operating expenses (730.5) (1,138.8) (166.8)
----------- ----------- -----------
Income from operations 1,156.9 1,734.4 254.0
Interest income 33.4 26.3 3.9
Other income, net -- 0.2 --
Income before income tax
expenses, equity in
affiliated companies, and
minority interests 6.1 169.4 24.8
----------- ----------- -----------
1,196.4 1,930.3 282.7
Income tax expenses (249.9) (428.7) (62.8)
Equity in earning (loss) of
affiliated companies 0.9 (30.1) (4.4)
----------- ----------- -----------
Net income 947.4 1,471.5 215.5
Less: Net income attributable
to non-controlling interests (11.9) (18.5) (2.7)
----------- ----------- -----------
Net income attributable to
ordinary shareholders
935.5 1,453.0 212.8
=========== =========== ===========
Earnings per ordinary share
Basic 1.70 2.61 0.38
Diluted 1.70 2.60 0.38
Earnings per ADS
Basic 3.40 5.22 0.76
Diluted 3.40 5.20 0.76
Weighted average ordinary
shares
outstanding
Basic 550,000,000 556,575,353 556,575,353
Diluted 550,000,000 559,600,871 559,600,871
Weighted average ADS
outstanding
Basic 275,000,000 278,287,677 278,287,677
Diluted 275,000,000 279,800,436 279,800,436
Reconciliation From Non-GAAP
measures to GAAP measures
Non-GAAP Operation income 1,177.7 1,860.2 272.4
Share-based compensation cost (20.8) (125.8) (18.4)
GAAP Operation income 1,156.9 1,734.4 254.0
Non-GAAP net income
attributable to ordinary
shareholders 956.3 1,578.8 231.2
Share-based compensation cost (20.8) (125.8) (18.4)
GAAP net income attribute to
ordinary shareholders 935.5 1,453.0 212.8
Non-GAAP diluted earnings per
share 1.74 2.82 0.41
Share-based compensation cost
per share (0.04) (0.22) (0.03)
----------- ----------- -----------
GAAP diluted earnings per
share 1.70 2.60 0.38
=========== =========== ===========
Non-GAAP diluted earnings per
ADS 3.48 5.64 0.82
Share-based compensation cost
per ADS (0.08) (0.44) (0.06)
----------- ----------- -----------
GAAP diluted earnings per ADS 3.40 5.20 0.76
=========== =========== ===========
CONTACT: Investors:
Maggie Zhou, Investor Relations Manager
Shanda Games Limited
Phone: +86-21-5050-4740 (Shanghai)
Email: IR@ShandaGames.com
Media:
Courtney Shike (China)
Brunswick Group LLC
Phone: +86-10-6566-2256
Email: cshike@brunswickgroup.com
Kate Tellier (U.S.A.)
Brunswick Group LLC
Phone: +1-212-706-7879
Email: ktellier@brunswickgroup.com
|
