Chinese online game developer Shanda Interactive Entertainment Limited announced its unaudited consolidated financial results for the second quarter ended June 30, 2009.
Consolidated net revenues increased 47.7% year-over-year and 11.8% quarter-over-quarter to CNY1.237 billion. Operating income increased 53.0% year-over-year and 12.7% quarter-over-quarter to CNY513.4 million.
Massively multi-player online role-playing games related revenues increased 54.6% year-over-year and 13.8% quarter-over-quarter to CNY1.074 billion. Casual games related revenues decreased 4.3% year-over-year and 12.7% quarter-over-quarter to CNY102.9 million. Active paying accounts for MMORPGs increased 19.4% quarter-over-quarter to 8.58 million.
Gross profit for the second quarter of 2009 was CNY899.0 million, representing a 47.4% increase from CNY610.1 million in the second quarter of 2008 and a 12.3% increase from CNY801.0 million in the first quarter of 2009. Gross margin was 72.7% in the second quarter of 2009, compared with 72.8% in the second quarter of 2008 and 72.3% in the first quarter of 2009.
The company's subsidiaries and VIEs are at various stages of progress depending on the requirements of the different local tax authorities in recognition of qualification of the High and New Technology Enterprises preferred tax treatment pursuant to "Working Guidelines for Assessment of New/High Technology Enterprises" issued by the Chinese tax authorities on July 8, 2008. In December 2008, government recognition of certain entities as HNTE was acknowledged by the local tax authority and these entities are entitled to a preferential tax rate of 15%, which is effective retroactively to January 1, 2008.
Jiang Bian has been named vice president of operations of Shanda Online. Prior to joining Shanda Online, he served as the marketing director for search engine products at Chinese search engine Baidu.com. Qianghua Yu was named chief architect of Shanda Online in June 2009. Prior to joining Shanda Online, Yu served as the chief architect of Chinese online payment provider 99Bill from 2006 to 2009. Xinhua Ji has been named chief security officer of Shanda Online. Prior to joining Shanda Online, Ji worked at Tencent for five years where he served in numerous capacities including the director of management engineering, assistant general manager of security center and deputy general manager.