Shanda (NASDAQ: SNDA) announced its financial results for the quarter ended September 30, 2004. Online games revenues for the third quarter of 2004 increased 118.0% year-over-year and 19.1% quarter-over-quarter to CNY 341.2 million (US$41.2 million), accounting for 91.8% of total revenues.
Revenues for the third quarter of 2004 increased 133.0% year-over-year, and 23.0% quarter-over-quarter to CNY 371.7 million (US$44.9 million), and net revenues increased 133.7% year-over-year and 23.1% quarter-over-quarter to CNY 353.3 million (US$42.7 million).
"We are very pleased with our third quarter results," said Tianqiao Chen, Chairman and CEO of Shanda. "Our MMORPG and casual game portfolio continued to post impressive revenue growth with total peak concurrent user number reaching an all-time high in the third quarter. We also continue to diversify our revenue stream, with revenue from value-added services and products as well as online advertising growing during the quarter. In addition, we took several important strategic steps during the quarter, which help position us to further expand our interactive game offerings, our user base, and our revenue streams."
Shanda's other revenues, which include revenues from the sale of game content related merchandise, wireless data services and online advertising, increased 92.0% to CNY 30.5 million (US$3.7 million) in the third quarter of 2004 from CNY 15.9 million in the second quarter of 2004. The increase in Shanda's other revenues was primarily due to revenue from the sale of a user account protection product, which Shanda launched in the third quarter of 2004, and the increase of online advertising revenues.