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Q2 revenues dip slightly at Shanda

China-based online publisher sees decline primarily in casual sector

China-based online publisher Shanda has announced its Q2 financial results noting a slight decline in net revenues from ¥1.16 billion ($171 million) in the three months to the end of June last year, to ¥1.11 billion ($162 million) this year.

That represents a drop of 2.7 per cent, with a decline in the company's casual game sales compared to Q1 this year, falling from ¥93.5 million ($13.8 million) to ¥71.4 million ($10.5 million) in that time, blamed on "weaker seasonality".

The drop in operating income was more significant, down from ¥431 million ($63.5 million) last year to ¥324 million ($47.8 million) this year, while operating margin slipped from 37.2 per cent to 29.1 per cent.

"Our second quarter financial results were in line with our expectations, as we improved the game environment for Mir II following the launch of expansion packs in April and June," commented Alan Tan, chairman and CEO of Shanda Games. "At the same time, we continued to advance our strategy to provide high-quality, diverse and innovative game content to expand our user base."

Meanwhile the company announced two additional business deals, one to acquire Dragon Nest developer Eyedentity Games, and another to link up with national broadcaster China Network Television to create an online games video channel.

"Looking ahead, we believe that, over the longer term, our strong pipeline of new games, international expansion, an integrated platform, expansion into mini and casual games, and a broad and loyal user base, as well as an experienced operating team, shall provide us with a solid foundation to achieve our growth potential," Tan concluded.

Earlier this week the publisher also announced a tie-in with Square Enix Europe developer Beautiful Game Studios to bring the Championship Manager brand to the country.

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Phil Elliott