Shanda Games 2Q profit holds steady

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NEW YORK (AP) ? Shanda Games Ltd. said Tuesday that it launched several games successfully during the second quarter, but its profit held steady because of promotional costs and higher salaries for its developers.

The Shanghai company said its net income grew to 305.2 million yuan ($47.2 million) from 304.3 million a year ago. Shanda said it earned 17 cents per American depositary share in the latest quarter.

Its revenue rose 19 percent, to 1.32 billion yuan ($204 million) from 1.11 billion yuan.

Shanda said revenue from massively multi-player online role-playing games rose 16 percent to 1.17 billion yuan ($180.1 million) following the launch of “Legend of Immortals” in May. It said expansion packs for “Mir II” and “Woool” performed well.

However the company’s product development costs rose 50 percent because it is now paying greater salaries to development employees. Sales and marketing costs grew 36 percent because of promotions for the newly released games.

Shanda’s ADRs were up 30 cents, or 6.2 percent, to $5.18 in aftermarket trading following the release of the earnings report. They ended the regular session down 16 cents, or 3.2 percent, to $4.88.