China's Shanda Reports Record $212.9M Quarter

Chinese online game company Shanda Games Limited has reported its highest quarterly revenue in company history, on the backs of its free-to-play MMOs. Revenues increased 23.4 percent year-over-year to $219.9 million, the company's fourth consecutive quarter of growth, in line with its expectations and guidance. Profits were reported at $63.5 million, up 20.9 percent year-over-year and 9 percent quarter-over quarter. All is not good news, however, as Shanda's average MAUs dropped from 24 million last quarter to 21 million in the quarter ending September 30. The monthly average spend per user decreased slightly as well, though the number of paying users per month was up. In 2010, Shanda was the third highest-grossing game company in a rapidly expanding Chinese market, contributing $680 million of an estimated $5 billion in revenue for the year. The currently public company may go private, if a family takeover proposal from company president Chen Tianqiao is approved by its board of directors.