Chinese online and mobile games publisher Shanda Games (NASDAQ: GAME) has announced its unaudited consolidated financial results for Q1 FY14, the 3 months ending 31 March 2014.
Net revenues were $161 million, down 10 percent year-on-year.
Mobile games accounted for $10.7 million, down 38 percent.
Net income was $49.7 million, down 17 percent year-on-year.
"We are currently hard at work preparing for the launch of a number of new mobile games which we are all excited for," commented CEO Xiangdong Zhang.
"We will continue to focus on leveraging our years of operational experience and competitive advantage to seek out new opportunities."
Shanda Games is currently testing Gumi's Brave World, Sega's Chain Chronicle and the in-house developed Fengshen MM for release in China during Q2.
During the January to March 2014 quarter, Shanda saws its total of daily average players for mobile games drop 17 percent from its October to December 2013 quarter.
Average revenue per daily active player was down 33 percent over the same period to $0.26 (RMB 1.6).
This compares with a total of 100.8 RMB for players of Shanda's online PC games.
The main reason for the decline was the success during 2013 of Million Arthur, which Shanda licensed from Square Enix outside Japan.
More generally, Shanda Games is currently considering a $1.9 billion proposal from a group of investors, its ex-chairman and Chinese publisher Perfect World, to take the company private.
It's expected that the deal will be approved but Shanda hasn't set a timetable for its approval or rejection.
Shanda Games ended the quarter with cash and equivalents worth $172 million.
[source: Shanda Games]