Chinese online game developer Giant Interactive Group Inc. announced its unaudited financial results for the first fiscal quarter ended March 31, 2010.

Revenue from online games in the first quarter totaled CNY302.1 million, representing an increase of 10.3% from CNY273.7 million in the fourth quarter 2009 and an 18.5% decrease from CNY370.5 million in the first quarter 2009. Net revenue was CNY304.4 million, compared to CNY276.0 million in the fourth quarter 2009 and CNY373.5 million in the first quarter 2009.

Cost of services was CNY45.1 million, representing an increase of 1.6% from the fourth quarter 2009 and a 24.3% decrease over the first quarter 2009. Sequentially, cost of services grew slower than net revenue due to continuous efforts to control operating costs.

Total operating expenses for the first quarter 2010 were CNY80.8 million, representing an increase of 44.9% from CNY55.8 million in the fourth quarter 2009 and a decline of 1.4% from CNY81.9 million in the first quarter 2009. The company stated that the sequential increase in operating expenses is mainly attributable to higher R&D expenditure and a decline in government financial incentives received.

Income tax expense for the first quarter 2010 was CNY21.6 million, compared to income tax expense of CNY15.3 million in the fourth quarter 2009 and income tax expense of CNY25.9 million in the first quarter 2009.

The company announced a cash dividend of USD0.18 per ordinary share on its outstanding shares on April 15, 2010.