Chinese online game company Shanda (SNDA) announced its unaudited financial results for the second quarter ended June 30, 2008 showing net revenues jumped 48.4% year-over-year and 7.4% quarter-over-quarter to a record high of CNY837.6 million.
Shanda's previous guidance of quarter-over-quarter growth was between 0% and 5%, so the company is certainly pleased that is beat that guess. "Shanda delivered significant revenue growth in the second quarter of 2008 despite the impact of the devastating Sichuan earthquake. Quarterly net revenue grew 7.4% sequentially, which exceeded our previous guidance," said Tianqiao Chen, chairman and CEO of Shanda.
Revenues from massively multiplayer online role-playing games increased 47.0% year-over-year and 8.5% quarter-over-quarter to a record high of CNY695.1 million. Revenues from casual games increased 52.1% year-over-year and decreased 7.8% quarter-over-quarter to CNY107.5 million. Active paying accounts for MMORPGs increased 3.1% quarter-over-quarter to 4.24 million. Average monthly revenue per active paying account for MMORPGs increased 5.2% quarter-over-quarter to CNY54.7. APA for casual games decreased 14.1% quarter-over-quarter to 1.65 million due to seasonality. ARPU for casual games increased 7.4% quarter-over-quarter to CNY21.8.
Operating income increased 37.4% year-over-year and 7.5% quarter-over-quarter to a record high of CNY335.6 million. Net income was CNY279.8 million, compared with CNY415.9 million in the second quarter of 2007 and CNY288.8 million in the first quarter of 2008.
Gross profit for the second quarter of 2008 was CNY610.1 million, representing a 60.7% increase from CNY379.5 million in the second quarter of 2007 and a 12.6% increase from CNY542.1 million in the first quarter of 2008. Gross margin was 72.8% in the second quarter of 2008, compared with 67.2% in the second quarter of 2007 and 69.5% in the first quarter of 2008. Operating income for the second quarter of 2008 was CNY335.6 million, representing a 37.4% increase from CNY244.2 million in the second quarter of 2007 and a 7.5% increase from CNY312.1 million in the first quarter of 2008.