Shanda (SNDA) saw gross profit margin increase to 71.0% in the first quarter of 2005 compared to 67.1% in the fourth quarter of 2004. This information came during the company's announcement of its unaudited financial results for the first quarter ended March 31, 2005.
Net revenues increased 118.3% year-over-year and 15.3% quarter-over-quarter to CNY497.0 million (US$60.0 million). Online games revenues, including MMORPG and casual games, for the first quarter of 2005 increased 96.7% year-over-year and 13.2% quarter-over-quarter to CNY441.6million (US$53.3 million), accounting for 88.9% of total revenues. First quarter MMORPG revenues grew 10.3% quarter-over-quarter to CNY331.2 million (US$40.0million) and casual game revenues grew 22.7% quarter-over-quarter to CNY110.4million (US$13.3 million);
Other revenues for the first quarter, which primarily include revenues from online advertising, and other value-added services and products, increased 36.2% quarter-over-quarter to CNY55.4million (US$6.7million), accounting for 11.1% of total revenues.
Operating income for the first quarter of 2005 was CNY253.9 million (US$30.7 million), representing a 262.7% increase compared to CNY70.0 million in the first quarter of 2004 and a 35.6% increase compared to CNY187.2 million in the fourth quarter of 2004. Operating margin increased to 51.1% in the first quarter of 2005 from 43.5% in the fourth quarter of 2004.