SHANGHAI, Dec. 1, 2011 /PRNewswire-Asia/ -- Shanda
Interactive Entertainment Limited (NasdaqGS: SNDA), or Shanda, a
leading interactive entertainment media company in China, today announced its unaudited
consolidated financial results for the third quarter ended
September 30, 2011.
Third Quarter 2011 Highlights
(1)
- Consolidated net revenues increased 3.7% quarter-over-quarter
and increased 28.0% year-over-year to RMB1,773.1 million (US$279.0 million).
- Shanda Games' revenues increased
2.4% quarter-over-quarter and increased 23.4% year-over-year to
RMB1,352.8 million (US$212.9 million).
- Shanda Online's revenues
increased 11.7% quarter-over-quarter and increased 35.2%
year-over-year to RMB344.1 million
(US$54.1 million).
- Other revenues increased 8.7% quarter-over-quarter and
increased 44.0% year-over-year to RMB439.0
million (US$69.1
million).
- Non-GAAP operating income was RMB145.1
million (US$22.8 million),
compared with RMB137.6 million in the
second quarter of 2011 and RMB191.1
million in the third quarter of 2010.
- Non-GAAP net income attributable to ordinary shareholders was
RMB65.9 million (US$10.3 million), compared with RMB63.6 million in the second quarter of 2011 and
RMB139.8 million in the third quarter
of 2010. Non-GAAP earnings per diluted ADS were RMB1.18 (US$0.18),
compared with RMB1.10 in the second
quarter of 2011 and RMB2.38 in the
third quarter of 2010.
"We continued to expand the scope of our business segments in
the third quarter of 2011 as we integrated our diverse content
portfolio and invested in our future growth," said Tianqiao Chen,
Chairman, Chief Executive Officer and President of Shanda. "As we
focus on developing cutting-edge technologies and make the
strategic decisions that are necessary to support our long term
growth, we believe these efforts will enhance our strength,
competitiveness and adaptability as we continue to evolve into a
leading global interactive entertainment media group."
Conference Call and Webcast Notice
Shanda will host a conference call at 10:00 a.m. on December 2,
2011 Beijing/Hong Kong time
(9:00 p.m. on December 1, 2011 Eastern Time), to present an
overview of the Company's financial performance and business
operations. A live webcast of the conference call will be available
on the Company's corporate website at http://www.snda.com .
Third Quarter 2011 Financial Results
Net Revenues. Net revenues were
RMB1,773.1 million (US$279.0 million), representing an increase of
3.7% from RMB1,709.8 million in the
second quarter of 2011 and an increase of 28.0% from RMB1,385.1 million in the third quarter of 2010.
The quarter-over-quarter increase was primarily driven by an
increase in revenues from Shanda
Games, Shanda Online and
other businesses.
Shanda Games' revenues were
RMB1,352.8 million (US$212.9 million), representing an increase of
2.4% from RMB1,320.5 million in the
second quarter of 2011 and an increase of 23.4% from RMB1,096.3 million in the third quarter of
2010.
Shanda Online's revenues were
RMB344.1 million (US$54.1 million), representing an increase of
11.7% from RMB308.0 million in the
second quarter of 2011 and an increase of 35.2% from RMB254.4 million in the third quarter of
2010.
Other revenues, including Ku6 Media, literature business, social
network games, and other businesses were RMB439.0 million (US$69.1
million), representing an increase of 8.7% from RMB403.8 million in the second quarter of 2011
and an increase of 44.0% from RMB304.8
million in the third quarter of 2010.
Gross Profit. Consolidated gross profit was
RMB972.8 million (US$153.1 million), representing an increase of
3.3% from RMB941.4 million in the
second quarter of 2011 and an increase of 17.9% from RMB824.8 million in the third quarter of 2010.
Gross margin was 54.9% in the third quarter of 2011, compared with
55.1% in the second quarter of 2011 and 59.5% in the third quarter
of 2010.
Shanda Games' gross profit was
RMB829.8 million (US$130.6 million), representing an increase of
3.6% from RMB800.7 million in the
second quarter of 2011 and an increase of 28.3% from RMB646.9 million in the third quarter of 2010.
Shanda Games' gross margin was 61.3%
in the third quarter of 2011, compared with 60.6% in the second
quarter of 2011 and 59.0% in the third quarter of 2010.
Shanda Online's gross profit was
RMB229.4 million (US$36.1 million), representing an increase of
3.3% from RMB221.9 million in the
second quarter of 2011 and an increase of 18.4% from RMB193.8 million in the third quarter of 2010.
Shanda Online's gross margin was
66.7% in the third quarter of 2011, compared with 72.1% in the
second quarter of 2011 and 76.2% in the third quarter of 2010.
Other businesses' gross profit was RMB7.6
million (US$1.2 million),
representing an increase of 6753.6% from RMB0.1 million in the second quarter of 2011 and
a decrease of 82.8% from RMB44.2
million in the third quarter of 2010. Other businesses'
gross margin was 1.7% in the third quarter of 2011, compared with
0.03% in the second quarter of 2011 and 14.5% in the third quarter
of 2010.
Operating Income. Operating income was
RMB88.9 million (US$14.0 million), compared with RMB82.8 million in the second quarter of 2011 and
RMB148.0 million in the third quarter
of 2010. Operating margin was 5.0% in the third quarter of 2011,
compared with 4.8% in the second quarter of 2011 and 10.7% in the
third quarter of 2010.
Non-GAAP Operating Income. Non-GAAP operating
income was RMB145.1 million
(US$22.8 million), compared with
RMB137.6 million in the second
quarter of 2011 and RMB191.1 million
in the third quarter of 2010. Non-GAAP operating margin was 8.2% in
the third quarter of 2011, compared with 8.1% in the second quarter
of 2011 and 13.8% in the third quarter of 2010.
Share-based compensation was RMB56.2
million (US$8.8 million) in
the third quarter of 2011, compared with RMB54.8 million in the second quarter of 2011 and
RMB43.1 million in the third quarter
of 2010.
Income Tax Expense. Income tax expense was
RMB95.5 million (US$15.0 million), compared with RMB84.1 million in the second quarter of 2011 and
RMB86.6 million in the third quarter
of 2010.
Net Income. Net income was
RMB74.9 million (US$11.8 million), compared with RMB0.6 million in the second quarter of 2011 and
RMB133.0 million in the third quarter
of 2010.
Net Income Attributable to Ordinary
Shareholders. Net income was RMB9.7 million (US$1.5
million), compared with RMB8.8
million in the second quarter of 2011 and RMB96.7 million in the third quarter of 2010.
Earnings per diluted ADS in the third quarter of 2011 were
RMB0.18 (US$0.02), compared with RMB0.16 in the second quarter of 2011 and
RMB1.64 in the third quarter of
2010.
Non-GAAP Net Income
Attributable to Ordinary Shareholders.
Non-GAAP net income was RMB65.9
million (US$10.3 million),
compared with RMB63.6 million in the
second quarter of 2011 and RMB139.8
million in the third quarter of 2010. Non-GAAP earnings per
diluted ADS in the third quarter of 2011 were RMB1.18 (US$0.18),
compared with RMB1.10 in the second
quarter of 2011 and RMB2.38 in the
third quarter of 2010.
Share Repurchase Program. During the
third quarter of 2011, Shanda repurchased an aggregate of 1,093,167
ADSs.
Recent Business Highlights
On October 17, 2011, Shanda
announced that its Board of Directors has received a preliminary
non-binding proposal letter from Mr. Tianqiao Chen, Chairman of the
Board, Chief Executive Officer and President of Shanda, to acquire
all of the outstanding ordinary shares of the Company not currently
owned, legally or beneficially, by Mr. Tianqiao Chen, his wife Ms.
Qian Qian Chrissy Luo, who is also a
non-executive director of Shanda and his brother Mr. Danian Chen, who is also the Chief Operating
Officer and a director of Shanda (together, the "Buyer Group"), for
US$41.35 per American Depositary
Share, each representing two ordinary shares, or $20.675 per ordinary share in cash.
On November 22, 2011, Shanda
announced that it has entered into an Agreement and Plan of Merger,
dated November 22, 2011 with Premium
Lead Company Limited ("Parent") and New Era Investment Holding Ltd.
pursuant to which Parent will acquire Shanda (the "Transaction")
for US$20.675 per ordinary share or
US$41.35 per American Depositary
Share. This represents a 26.6% premium over the Company's 30
trading day volume-weighted average price as quoted by NASDAQ on
October 14, 2011, the last trading
day prior to the Company's announcement on October 17, 2011 that it had received a "going
private" proposal. The Transaction values Shanda's equity at
approximately US$2.3 billion on a
fully diluted basis.
*Please visit Shanda's website (http://www.snda.com) for details
about these and other announcements.
(1) The conversion of Renminbi (RMB) into U.S. dollars in this
release is based on RMB6.3549 to
US$1.00 as published by the People's
Bank of China on September 30, 2011. The percentages stated in
this press release are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed above is
preliminary. Adjustments to these preliminary financial statements
may be identified during the audit, which could result in
significant differences from this preliminary unaudited financial
information.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
includes non-GAAP financial measures of adjusted operating income,
adjusted net income and adjusted earnings per ADS, each of which is
adjusted to exclude share-based compensation. The Company believes
these non-GAAP financial measures are important to help investors
understand the Company's current financial performance and future
prospects, compare business trends among different reporting
periods on a consistent basis and assess the Company's core
operating results. These non-GAAP financial measures should be
considered in addition to financial measures prepared in accordance
with GAAP, but should not be considered a substitute for, or
superior to, financial measures prepared in accordance with GAAP.
For a reconciliation of each of these non-GAAP financial measures
to the most directly comparable GAAP financial measure, please see
the financial statements included with this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are not historical facts but instead represent only the
Company's beliefs regarding future events, many of which, by their
nature, are inherently uncertain and outside of the Company's
control. It is possible that the Company's actual results and
financial condition may differ, possibly materially, from the
anticipated results and financial condition indicated in these
forward-looking statements. Statements in this announcement that
are not historical facts, including but not limited to statements
regarding the continuous growth of the Company, the success of any
acquisitions or investments by the Company or any subsidiaries, the
introduction of expansion packs to existing titles, the
introduction and timing of new game titles, the success of our
online literature platform, the success of our online video
operations, and the signing and development of successful artist
for our music business, represent only the Company's current
expectations, assumptions, estimates and projections and are
forward-looking statements. Important risks and uncertainties
that could cause the Company's actual results to be materially
different from expectations include but are not limited to the risk
that there are delays in the localization and/or development of the
games to be released in 2011, the risk that such games are not well
received by users in China, the
risk that the games fail to be commercialized or the commercialized
results fail to meet the expectations of end users, the risk that
our contract writers do not deliver appealing literature products,
the risk that our online video website fails to attract advertisers
or content providers, the risk that we fail to sign popular music
artists or fail to continue to successfully promote our existing
artists, the risk that the laws and regulations in the PRC continue
to prohibit or restrict offering of wireless valued added products,
the risk that the Company fails to deliver continuous growth in
2011, and the risks set forth in the Company's filings with the
U.S. Securities and Exchange Commission, including the Company's
annual report on Form 20-F. Forward-looking statements speak only
as of the date they are made, and the Company undertakes no
obligation to update publicly any of them in light of new
information or future events, except as required under applicable
laws.
About Shanda Interactive Entertainment Limited
Shanda Interactive Entertainment Limited (Nasdaq: SNDA)
("Shanda") is a leading interactive entertainment media company in
China, offering a broad array of
online entertainment content on an integrated service platform to a
large and diverse user base. Shanda offers its high quality
entertainment content through its subsidiaries and affiliates,
including Shanda Games, Cloudary,
Ku6 Media, and various other online community and business units.
The broad variety of content ranges from massively multi-player
online role-playing games (MMORPGs) and advanced casual games, to
social network games, e-sports, literature, film, television,
music, and video etc. By providing a centralized platform through
which Shanda can deliver its own content as well as third-party
content, Shanda allows its users to interact with thousands of
other users while enjoying some of the best entertainment content
available in China today. Shanda:
"Interaction enriches your life". For more information about
Shanda, please visit http://www.snda.com.
Contact
Shanda Interactive Entertainment Limited
Dahlia Wei, IR Associate
Director
Elyse Liao, IR Senior Manager
Phone: +86-21-6058-8688 (Shanghai)
+852-2851-0177 (Hong Kong)
Email: IR@snda.com
Christensen Investor Relations
China:
Christian Arnell
Phone: +86-10-5826-4939
Email: carnell@christensenir.com
United States:
Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
|
SHANDA
INTERACTIVE ENTERTAINMENT LIMITED
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEET
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
As of December 31, 2010
|
|
As
of September
30, 2011
|
|
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
5,550.2
|
|
5,294.6
|
|
833.2
|
|
|
Restricted cash
|
5.4
|
|
903.5
|
|
142.2
|
|
|
Short-term
investments
|
2,257.9
|
|
2,791.7
|
|
439.3
|
|
|
Marketable securities
|
16.9
|
|
16.5
|
|
2.6
|
|
|
Accounts receivable
|
260.3
|
|
286.4
|
|
45.1
|
|
|
Inventories
|
130.8
|
|
147.4
|
|
23.2
|
|
|
Due from related
parties
|
-
|
|
14.5
|
|
2.3
|
|
|
Deferred licensing fees and
related costs
|
48.3
|
|
32.8
|
|
5.2
|
|
|
Prepayments and other current
assets
|
425.7
|
|
338.9
|
|
53.3
|
|
|
Deferred tax assets
|
115.6
|
|
134.9
|
|
21.2
|
|
|
Total current assets
|
8,811.1
|
|
9,961.2
|
|
1,567.6
|
|
|
|
|
|
|
|
|
|
|
Time deposit with maturity over
one year
|
1,215.3
|
|
-
|
|
-
|
|
|
Investments
at equity
and cost
|
237.5
|
|
324.5
|
|
51.1
|
|
|
Other investments
|
41.6
|
|
38.1
|
|
6.0
|
|
|
Property, equipment and
software
|
715.4
|
|
858.6
|
|
135.1
|
|
|
Intangible assets
|
2,020.3
|
|
1,529.0
|
|
240.6
|
|
|
Goodwill
|
|
1,142.9
|
|
1,097.7
|
|
172.7
|
|
|
Long-term deposits
|
|
62.8
|
|
47.2
|
|
7.4
|
|
|
Long-term prepayments
|
|
390.4
|
|
381.8
|
|
60.1
|
|
|
Long-term assets
|
235.6
|
|
480.4
|
|
75.6
|
|
|
Non-current deferred tax
assets
|
19.8
|
|
22.7
|
|
3.6
|
|
|
Total assets
|
|
14,892.7
|
|
14,741.2
|
|
2,319.8
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
415.6
|
|
408.3
|
|
64.3
|
|
|
Licensing fees
payable
|
247.0
|
|
158.3
|
|
24.9
|
|
|
Taxes payable
|
211.1
|
|
199.2
|
|
31.3
|
|
|
Deferred
revenue
|
729.6
|
|
590.6
|
|
92.9
|
|
|
Due to related
parties
|
3.1
|
|
-
|
|
-
|
|
|
Short term loan
|
0.0
|
|
1,389.7
|
|
218.7
|
|
|
Other payables and
accruals
|
826.9
|
|
895.8
|
|
141.1
|
|
|
Deferred tax
liabilities
|
93.9
|
|
50.0
|
|
7.9
|
|
|
Convertible debt within
one year
|
1,052.8
|
|
-
|
|
-
|
|
|
Total current
liabilities
|
3,580.0
|
|
3,691.9
|
|
581.1
|
|
|
|
|
|
|
|
|
|
|
Non-current deferred tax
liabilities
|
389.9
|
|
358.4
|
|
56.4
|
|
|
Non-current income tax
liabilities
|
9.4
|
|
9.4
|
|
1.5
|
|
|
Long-term liabilities
|
49.3
|
|
74.3
|
|
11.7
|
|
|
Non-current deferred
revenue
|
76.3
|
|
42.6
|
|
6.7
|
|
|
Total liabilities
|
4,104.9
|
|
4,176.6
|
|
657.4
|
|
|
|
|
|
|
|
|
|
Redeemable non-controlling
interests
|
25.3
|
|
41.6
|
|
6.5
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Ordinary shares
|
9.8
|
|
9.6
|
|
1.5
|
|
|
Additional paid-in
capital
|
6,976.7
|
|
6,660.0
|
|
1048.0
|
|
|
Statutory
reserves
|
207.6
|
|
220.7
|
|
34.7
|
|
|
Accumulated other
comprehensive loss
|
(191.1)
|
|
(308.1)
|
|
(48.5)
|
|
|
Retained
earnings
|
1,704.7
|
|
1,611.3
|
|
253.6
|
|
|
Total Shanda
shareholder' equity
|
8,707.7
|
|
8,193.5
|
|
1,289.3
|
|
|
Non-controlling
interests
|
2,054.8
|
|
2,329.5
|
|
366.6
|
|
|
Total equity
|
10,762.5
|
|
10,523.0
|
|
1,655.9
|
|
|
Total liabilities and
shareholders'
equity
|
14,892.7
|
|
14,741.2
|
|
2,319.8
|
|
|
|
|
|
|
|
|
|
|
|
SHANDA
INTERACTIVE ENTERTAINMENT LIMITED
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(in
millions, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months period ended,
|
|
|
|
September 30,
|
|
June 30,
|
|
September
30,
|
|
|
|
2010
|
|
2011
|
|
2011
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net revenues
|
|
|
|
|
|
|
|
|
|
|
Shanda Games
|
|
1,096.3
|
|
1,320.5
|
|
1,352.8
|
|
212.9
|
|
|
Shanda Online
|
|
254.4
|
|
308.0
|
|
344.1
|
|
54.1
|
|
|
Others
|
|
304.8
|
|
403.8
|
|
439.0
|
|
69.1
|
|
|
Elimination
|
|
(270.4)
|
|
(322.5)
|
|
(362.8)
|
|
(57.1)
|
|
|
Total
|
|
1,385.1
|
|
1,709.8
|
|
1,773.1
|
|
279.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
|
|
|
|
|
|
|
|
Shanda Games
|
|
(449.4)
|
|
(519.8)
|
|
(523.0)
|
|
(82.3)
|
|
|
Shanda Online
|
|
(60.6)
|
|
(86.1)
|
|
(114.7)
|
|
(18.0)
|
|
|
Others
|
|
(260.6)
|
|
(403.7)
|
|
(431.4)
|
|
(67.9)
|
|
|
Elimination
|
|
210.3
|
|
241.2
|
|
268.8
|
|
42.3
|
|
|
Total
|
|
(560.3)
|
|
(768.4)
|
|
(800.3)
|
|
(125.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
Shanda Games
|
|
646.9
|
|
800.7
|
|
829.8
|
|
130.6
|
|
|
Shanda Online
|
|
193.8
|
|
221.9
|
|
229.4
|
|
36.1
|
|
|
Others
|
|
44.2
|
|
0.1
|
|
7.6
|
|
1.2
|
|
|
Elimination
|
|
(60.1)
|
|
(81.3)
|
|
(94.0)
|
|
(14.8)
|
|
|
Total overall gross
profit
margin
|
|
824.8
|
|
941.4
|
|
972.8
|
|
153.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Product
development
|
|
(185.3)
|
|
(250.8)
|
|
(265.1)
|
|
(41.7)
|
|
|
Sales and
marketing
|
|
(206.9)
|
|
(222.0)
|
|
(218.0)
|
|
(34.3)
|
|
|
General and
administrative
|
|
(284.6)
|
|
(385.8)
|
|
(400.8)
|
|
(63.1)
|
|
|
Total operating
expenses
|
|
(676.8)
|
|
(858.6)
|
|
(883.9)
|
|
(139.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
148.0
|
|
82.8
|
|
88.9
|
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expenses)/income,
net
|
|
21.4
|
|
31.7
|
|
40.9
|
|
6.4
|
|
|
Other income/(expenses),
net
|
|
54.7
|
|
(21.2)
|
|
43.9
|
|
6.9
|
|
|
Income before income tax
expenses, equity in loss of affiliates
|
|
224.1
|
|
93.3
|
|
173.7
|
|
27.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
(86.6)
|
|
(84.1)
|
|
(95.5)
|
|
(15.0)
|
|
|
Equity in loss of
affiliates
|
|
(4.5)
|
|
(8.6)
|
|
(3.3)
|
|
(0.5)
|
|
|
Net income
|
|
133.0
|
|
0.6
|
|
74.9
|
|
11.8
|
|
|
Less: Net income(loss)
attributable to non-controlling interests and redeemable preferred
shares issued by a subsidiary
|
(36.3)
|
|
8.2
|
|
(65.2)
|
|
(10.3)
|
|
|
Net income attributable to
Shanda Interactive Entertainment Limited
|
96.7
|
|
8.8
|
|
9.7
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.84
|
|
0.08
|
|
0.09
|
|
0.01
|
|
|
Diluted
|
|
0.82
|
|
0.08
|
|
0.09
|
|
0.01
|
|
|
Earnings per ADS:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.68
|
|
0.16
|
|
0.18
|
|
0.02
|
|
|
Diluted
|
|
1.64
|
|
0.16
|
|
0.18
|
|
0.02
|
|
|
Weighted average ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
115,073,616
|
|
112,973,774
|
|
111,822,819
|
|
111,822,819
|
|
|
Diluted
|
|
117,493,819
|
|
115,018,676
|
|
112,618,275
|
|
112,618,275
|
|
|
Weighted average ADS
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
57,536,808
|
|
56,486,887
|
|
55,911,410
|
|
55,911,410
|
|
|
Diluted
|
|
58,746,910
|
|
57,509,338
|
|
56,309,138
|
|
56,309,138
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Non-GAAP
measures to GAAP measures:
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
191.1
|
|
137.6
|
|
145.1
|
|
22.8
|
|
|
Share-based compensation
cost
|
|
(43.1)
|
|
(54.8)
|
|
(56.2)
|
|
(8.8)
|
|
|
GAAP operating income
|
|
148.0
|
|
82.8
|
|
88.9
|
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable
to Shanda Interactive Entertainment Limited
|
139.8
|
|
63.6
|
|
65.9
|
|
10.3
|
|
|
Share-based compensation
cost
|
|
(43.1)
|
|
(54.8)
|
|
(56.2)
|
|
(8.8)
|
|
|
GAAP net income attributable to
Shanda Interactive Entertainment Limited
|
96.7
|
|
8.8
|
|
9.7
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per
ADS
|
|
2.38
|
|
1.10
|
|
1.18
|
|
0.18
|
|
|
Share-based compensation cost
per ADS
|
|
(0.74)
|
|
(0.94)
|
|
(1.00)
|
|
(0.16)
|
|
|
GAAP diluted earnings per
ADS
|
|
1.64
|
|
0.16
|
|
0.18
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHANDA
INTERACTIVE ENTERTAINMENT LIMITED
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(in
millions, except for share and per share data)
|
|
|
|
|
|
|
|
|
For
the nine months
period ended,
|
|
|
September
30,
|
|
September
30,
|
|
|
2010 (Adjusted) (1)
|
|
2011
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
Net revenues
|
|
|
|
|
|
|
Shanda Games
|
3,352.2
|
|
3,925.9
|
617.8
|
|
|
Shanda Online
|
756.4
|
|
953.4
|
150.0
|
|
|
Others
|
745.6
|
|
1,249.4
|
196.6
|
|
|
Elimination
|
(812.2)
|
|
(1,014.9)
|
(159.7)
|
|
|
Total
|
4,042.0
|
|
5,113.8
|
804.7
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
|
|
|
|
Shanda Games
|
(1,385.7)
|
|
(1,534.2)
|
(241.4)
|
|
|
Shanda Online
|
(163.0)
|
|
(284.1)
|
(44.7)
|
|
|
Others
|
(647.6)
|
|
(1,151.3)
|
(181.2)
|
|
|
Elimination
|
647.3
|
|
720.0
|
113.3
|
|
|
Total
|
(1,549.0)
|
|
(2,249.6)
|
(354.0)
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
Shanda Games
|
1,966.5
|
|
2,391.7
|
376.4
|
|
|
Shanda Online
|
593.4
|
|
669.3
|
105.3
|
|
|
Others
|
98.0
|
|
98.1
|
15.4
|
|
|
Elimination
|
(164.9)
|
|
(294.9)
|
(46.4)
|
|
|
Total
|
2,493.0
|
|
2,864.2
|
450.7
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Product
development
|
(461.6)
|
|
(762.7)
|
(120.0)
|
|
|
Sales and
marketing
|
(525.3)
|
|
(661.6)
|
(104.1)
|
|
|
General and
administrative
|
(787.9)
|
|
(1,120.1)
|
(176.3)
|
|
|
Total operating
expenses
|
(1,774.8)
|
|
(2,544.4)
|
(400.4)
|
|
|
|
|
|
|
|
|
Income from
operations
|
718.2
|
|
319.8
|
50.3
|
|
|
|
|
|
|
|
|
Interest (expenses)/income,
net
|
22.6
|
|
107.8
|
17.0
|
|
|
Other income, net
|
111.7
|
|
70.9
|
11.1
|
|
|
Income before income tax
expenses, Equity in loss of affiliates
|
852.5
|
|
498.5
|
78.4
|
|
|
|
|
|
|
|
|
Income tax expense
|
(251.0)
|
|
(274.3)
|
(43.1)
|
|
|
Equity in loss of
affiliates
|
(8.7)
|
|
(19.0)
|
(3.0)
|
|
|
Net income from continuing
operations
|
592.8
|
|
205.2
|
32.3
|
|
|
|
|
|
|
|
|
Discontinued
operations: (1)
|
|
|
|
|
|
|
Net loss from discontinued
operations, net of tax
|
*0.0
|
|
-
|
-
|
|
|
Gain from disposal of
discontinued operations, net of tax
|
30.6
|
|
-
|
-
|
|
|
Net income from discontinued
operations, net of tax
|
30.6
|
|
-
|
-
|
|
|
|
|
|
|
|
|
Net income
|
623.4
|
|
205.2
|
32.3
|
|
|
|
|
|
|
|
|
Less: Net income attributable to
non-controlling interests and redeemable preferred shares issued by
a subsidiary
|
(134.9)
|
|
(101.2)
|
(15.9)
|
|
|
Net income attributable to
Shanda Interactive Entertainment Limited
|
488.5
|
|
104.0
|
16.4
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
Basic
|
3.99
|
|
0.93
|
0.15
|
|
|
Diluted
|
3.89
|
|
0.91
|
0.14
|
|
|
Earnings per ADS:
|
|
|
|
|
|
|
Basic
|
7.98
|
|
1.86
|
0.30
|
|
|
Diluted
|
7.78
|
|
1.82
|
0.28
|
|
|
Weighted average ordinary shares
outstanding:
|
|
|
|
|
|
|
Basic
|
122,475,431
|
|
112,447,879
|
112,447,879
|
|
|
Diluted
|
125,642,321
|
|
114,344,335
|
114,344,335
|
|
|
Weighted average ADS
outstanding:
|
|
|
|
|
|
|
Basic
|
61,237,716
|
|
56,223,940
|
56,223,940
|
|
|
Diluted
|
62,821,161
|
|
57,172,168
|
57,172,168
|
|
|
|
|
|
|
|
|
Reconciliation from Non-GAAP
measures to GAAP measures:
|
|
|
|
|
|
|
Non-GAAP operating
income
|
870.1
|
|
478.8
|
75.3
|
|
|
Share-based compensation
cost
|
(151.9)
|
|
(159.0)
|
(25.0)
|
|
|
GAAP operating income
|
718.2
|
|
319.8
|
50.3
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable
to Shanda Interactive Entertainment Limited
|
640.4
|
|
263.0
|
41.4
|
|
|
Share-based compensation
cost
|
(151.9)
|
|
(159.0)
|
(25.0)
|
|
|
GAAP net income attributable to
Shanda Interactive Entertainment Limited
|
488.5
|
|
104.0
|
16.4
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per
ADS
|
10.20
|
|
4.60
|
0.72
|
|
|
Share-based compensation cost
per ADS
|
(2.42)
|
|
(2.78)
|
(0.44)
|
|
|
GAAP diluted earnings per
ADS
|
7.78
|
|
1.82
|
0.28
|
|
(1) Reflects the disposition of
the discontinued operation of Huayi Music in accordance U.S.
GAAP.
|
|
|
|
|
|
|
SOURCE Shanda Interactive Entertainment Limited
