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Shanda sees Q1 2013 mobile game revenue rise to $17 million

Accounts for 10 percent of total revenue

Shanda sees Q1 2013 mobile game revenue rise to $17 million
Chinese online and mobile games publisher Shanda Games (NASDAQ: GAME) has announced its unaudited consolidated financial results for the first quarter ended 31 March 2013.

On a GAAP basis, net revenues were $173 million (RMB 1.1 billion), down 21.9 percent year-on-year.

Net income attributable was $39.1 million (RMB 244.9 million, down 27.3 percent year-on-year.

A growing share

Shanda's MMOG business accounted for 90 percent of sales, with mobile games a mere 9.8 percent, or $17 million.

A nascent part of the company - which had 302,000 daily active players in Q1 - it is nevertheless a very fast growing part of sales, up from $1.3 million in Q4 2012.

Shanda revealed that its average revenue per daily active player during the period was RMB 3.90 ($0.62), up from RMB 2.20 (0.35) during Q4 2012.

"During the first quarter of 2013, we made significant progress in our mobile game business as we witnessed strong reception to our mobile games in the Korean market," said CEO Xiangdong Zhang.

"With revenue contribution close to 10 percent of our total revenues, our mobile game business now forms an integral part of our strategic focus."

Zhang pointed to the success of the Square Enix-developed but Shanda-published Million Arthur in Korea and Taiwan. It will soon be released in China.

The company is also working on a mobile version of its free-to-play MMOG Dragon Nest.

Cash up

During the quarter, Shanda Games generated $43.9 million (RMB 275.3 million) in cash flow from its operating activities.

The company ended the quarter with $556 million (RMB 3.485 billion) in cash and cash equivalents and short-term investments.

[source: Shanda Games IR]
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.