
Oh, I smell vindication. Thanks for the upgrade JP!
The difference between Vegas and Wall Street is that in Vegas the drunks gamble with their own money.

SHANGHAI, China, Nov 09, 2006 /Xinhua-PRNewswire via COMTEX News Network/
Shanda Interactive Entertainment Limited (Nasdaq: SNDA), or Shanda, a
leading interactive entertainment media company in China, today announced
its unaudited financial results for the third quarter ended September 30, 2006.
Summary of the Third Quarter 2006:
-- Total net revenues increased 7.7% quarter-over-quarter and decreased
12.6% year-over-year to RMB436.8 million (US$ 55.2 million).
-- Online game revenues, including MMORPGs and casual games, increased
9.4% quarter-over-quarter and decreased 6.6% year-over-year to RMB409.1
million (US$ 51.7 million).
-- Average monthly revenue per active paying account for MMORPGs increased
13.4% quarter-over-quarter to RMB51.6.
-- Operating income increased 23.4% quarter-over-quarter and decreased
25.7% year-over-year to RMB112.7 million (US$14.2 million).
-- Net income was RMB143.5 million (US$ 18.1 million), compared to net
income of RMB133.6 million in the second quarter of 2006 and RMB261.1
million in the third quarter of 2005. Earnings per diluted ADS were RMB
1.98 (US$ 0.26), compared to earnings per diluted ADS of RMB 1.86 in
the second quarter of 2006 and RMB 3.56 in the third quarter of 2005.
"Shanda posted solid third quarter results which were primarily driven by growth in our
MMORPG and casual game business over second quarter 2006 levels," said Tianqiao Chen,
Chairman & Chief Executive Officer of Shanda. "The continuous growth illustrates again
that the new revenue model is sustainable and scalable. We believe this new model has
now justified itself as an effective way to most efficiently discover and satisfy user
demands, extend the life cycle of games and build a sustainable community experience
for our interactive entertainment offerings. The successful transition has once again
proven that Shanda's core competence lies in its operational ability to quickly address
changing user demands. We are also excited about the MMORPGs and casual games in our
pipeline. In the fourth quarter, we plan to commercially launch Dungeons & Dragons(R)
Online in additionto the launch of three new casual games including Kong-Fu Masters." Chen Tianqiao “Shanda is more mature”
“Shanda is unwilling to earn shot-term money, while it doesn’t mean Shanda doesn’t have the ability to profit because we will not do the things conflicting with our principal objective. For instance, though we can profit from pay-to-play mode, we adopt free-to-play mode for it is better satisfy our principal objective,” says Shanda’s CEO Chen Tianqiao, “Each time Shanda got its success at the cost of taking huge risk and went through hardship, however, Shanda is more likely to succeed when it experiences hardship. Now, Shanda is more mature and confident than ever.”
Chen has been given confidence by two pieces of news. One is about Actoz, Shanda-controlling company and also the developer of “Legend”, Actoz's share price increased 14% when it released its new online game, the other one Sina, having sold 19.5% stake to Shanda, its share price increased 17% after it announced its Q2 financial report. According to Shanda’s insiders, Actoz and Sina’s previous unsatisfying performances influence Shanda a lot, while, now the current situation has changed. |
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| sina http://tech.sina.com.cn/i/2006-08-11/09271081554.shtml |
