Chinese online gaming company Shanda's (SNDA) announced its unaudited financial results for the second quarter ended June 30, 2007 show total net revenues increased 6.0% quarter-over-quarter and increased 39.1% year-over-year to a record high of CNY564.4 million.
Tianqiao Chen, chairman and CEO of Shanda, says in a prepared statement, "On the MMORPG business side, as we continue to see strong growth from our existing titles, we are proud to report that our newly launched game LaTale has, thus far, been a success under the CSP model. We have also successfully expanded our pipeline through licensing and co-developing several high-quality games, enhanced our current portfolio of content through a strategic acquisition, and entered into license agreements that will introduce several of our popular games into new markets outside of mainland China."
Daniel Zhang has also resigned as vice president and chief financial officer. He will remain a member of the board of directors of the company following his resignation from management. Jun Tang, currently the company's president, will be named as an acting chief financial officer.
Gross profit for the second quarter of 2007 was CNY379.5 million, up 9.4% from CNY347.0 million in the first quarter of 2007 and up 65.6% from CNY229.2 million in the second quarter of 2006. Gross margin was 67.2% in the second quarter of 2007, up from 65.2% in the first quarter of 2007 and from 56.5% in the second quarter of 2006.
Operating income for the second quarter of 2007 was CNY244.3 million, representing an increase of 8.8% from CNY224.5 million in the first quarter of 2007 and an increase of 167.5% from CNY91.3 million in the second quarter of 2006.