PEKING (dpa-AFX) - Chinese entertainment media company Shanda Interactive Entertainment Ltd. (SNDA), Thursday reported a plunge in profit for the third quarter, despite a double-digit growth in revenues, as expenses increased.
Shanda Interactive's net income for the quarter was 9.7 million Chinese yuan or $1.5 million, compared to 96.7 million yuan in the third quarter last year. Earnings per ADS for the quarter were 0.18 yuan or $0.02, compared to 1.64 yuan last year.
Adjusted net income for the quarter dropped to 65.9 million yuan or $10.3 million, compared to 139.8 million yuan in the third quarter last year. Adjusted earnings per diluted ADS for the quarter were 1.18 yuan or $0.18, compared to 2.38 yuan last year.
Net revenues for the quarter were 1,773.1 million yuan or $279.0 million, an increase of 28 percent from 1,385.1 million yuan last year, driven mainly by an increase in revenues from Shanda Games, Shanda Online and other businesses.
Gross margin for the quarter dropped to 54.9 percent from 59.5 percent last year.
Total operating expenses for the quarter increased to 883.9 million yuan or $139.1 million, compared to 676.8 million last year.
Copyright RTT News/dpa-AFX
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