Shanda Games revenue for Q4 ended Dec. 31 fell...
Shanda Games revenue for Q4 ended Dec. 31 fell 6 percent from a year earlier to $168.8 million as revenue from its core massively multiplayer online (MMO) titles dropped 14 percent, it said Friday. Revenue for MMO games declined 6.4…
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percent from Q3, mainly due to a revenue decline in “several key” games as the Chinese company “continued decelerating monetization” on those titles to “ensure a longer lifecycle as well as the typical effects of seasonality” because Q3 included China’s summer holidays, it said in an earnings release. Revenue for MMO games was 87.3 percent of total Q4 revenue, while mobile games was only 11.7 percent and other revenue just 1 percent, it said. Profit decreased 8.2 percent from the year-ago quarter to $59.4 million. Average monthly active users of Shanda MMO games decreased 3.8 percent from Q3 to 17.7 million, while average daily active users of its mobile games dipped 2.8 percent from Q3 to 558,900, it said. The company’s board received a preliminary nonbinding proposal letter in January from Shanda Interactive Entertainment, the controlling shareholder of Shanda Games, and an affiliate of Primavera Capital under which the companies proposed buying Shanda Games for about $1.9 billion and taking it private. Its board formed a special committee of independent directors to evaluate the proposal and it has “not set a definitive timetable for the completion of its evaluation of the proposed transaction,” Shanda Games said Friday.