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Shanda Posts Drop in Net Income for Q2

But online game revenues up at Chinese firm.

Leading Chinese online games operator Shanda has disclosed its preliminary second quarter 2008 financial results, showing a decrease in net income despite a bump in revenues.
 
Second quarter net income was $40.8 million, down 32.7 percent on last year’s Q2 figure and 3.1 percent on Q1 2008’s total.

Net revenues for the quarter hit $122.1 million, up 48.4 percent on Q2 2007, with online game revenues accounting for $117 million of the total.

Gross profit for the second quarter of 2008 was $88.9 million, representing a 60.7 percent increase over Q2 2007, while operating income was up 37.4 percent to $48.9 million.

"Shanda delivered significant revenue growth in the second quarter of 2008 despite the impact of the devastating Sichuan earthquake,” said Shanda CEO Tianqiao Chen. “Quarterly net revenue grew 7.4% sequentially, which exceeded our previous guidance."