Shanda Games 2nd-quarter net income down 16 percent online game revenue edges down

Shanda Games 2Q net income drops 16 percent

SEATTLE — Shanda Games Ltd., a Shanghai-based online game company, said Wednesday its second-quarter net income fell 16 percent as revenue from both casual and multiplayer games declined.

Net income for the three months ended June 30 declined to 304.3 million RMB ($44.8 million), or 1.06 RMB (16 cents) per U.S.-traded share, from 363.2 million RMB, or 1.32 RMB per share in the same quarter last year.

That matches what Wall Street analysts were expecting, according to a Thomson Reuters survey.

Revenue slipped 4 percent to 1.11 billion RMB ($163.9 million) from 1.16 billion RMB in the year-ago quarter, slightly less than the $165.9 million analysts predicted.

Shanda provided the currency conversions based on the exchange rate on June 30.

Revenue from casual games and the massive multiplayer role-playing games Shanda specializes in both edged down.

Operating expenses, meanwhile, increased 23 percent to 322 million RMB ($47.4 million).

(This version CORRECTS day of week)