Shanda Games Q2 Profit Surges 21%

Shanda Games GAME reported a 21% rise in its second-quarter earnings. Shanda's quarterly profit surged to 374.4 million Chinese yuan ($60.6 million), or CNY1.40 (22 cents) an American depositary share, versus a year-ago profit of CNY308.4 million, or CNY1.10 an ADS. Excluding one-time items, its per-ADS earnings came in at CNY1.50 (24 cents). Its revenue declined 4% to CNY1.09 billion, or $175.6 million. However, analysts were projecting a profit of 20 cents an ADS on revenue of $175 million. Its gross margin rose to 64.6% from 62.4%. Shanda shares gained 3.08% to $4.69 in after-hours trading.