Shanda Reports Q3 Results, Appoints New CFO--Shanghai NET Network Service Co.,Ltd

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Shanda Reports Q3 Results, Appoints New CFO--Shanghai NET Network Service Co.,Ltd

November 28, 2007 (Shanghai NET Network Service Co.,Ltd)

Shanda (SNDA) says its consolidated Chinese gaming net revenues achieved a record high of RMB656.3 million as it reported its unaudited consolidated financial results for the third quarter ended September 30, 2007.
"Our game revenues reached a record high in the third quarter due to the strong organic growth of our main titles," said Tianqiao Chen, chairman and CEO of Shanda. "Leveraging our CSP model and operating platform, we introduced new expansion packs and held special promotions during the summer holidays, which translated to growth in both our ARPU and APA. We have also built a strong game pipeline for 2008 to include a series of exciting new MMORPGs, casual games and expansion packs. We believe the growth of our content will allow us to continue to expand our business going forward."
Active paying accounts for MMORPGs increased 13.2% quarter-on-quarter to 3.08 million. Average monthly revenue per active paying account for MMORPGs increased 3% quarter-on-quarter to RMB59.7.
Online game revenues, including MMORPGs and casual games, was RMB633.7 million, an increase of 16.6% quarter-on-quarter and 54.9% year-on-year. Gross profit was RMB457.9 million, an increase of 20.6% quarter-on-quarter and 86.6% year-on-year.
Net income was RMB238.9 million, compared to adjusted net income of RMB238.4 million in the second quarter of 2007, and net income of RMB143.5 million in the third quarter of 2006.
Shanda also announced that Grace Wu, the company's vice president of strategic investments, has been appointed as the company's chief financial officer. Ms. Wu brings more than 12 years of experience in corporate finance to the Company.
"Grace is a key strategic addition to Shanda's executive team, especially given her broad corporate finance experience and her background in the investment banking community," stated Chen. "We are pleased to have Grace in a position that takes full advantage of her multi-faceted skill set."
Wu joined Shanda as vice president of strategic investments in October 2007. Prior to joining Shanda, she spent five years with AU Optronics, which is one of the world's largest manufacturers of flat panel displays, where she was responsible for financial planning and analysis, investor relations and capital markets activities.