Shanda Games' CEO steps down; successor named
Shanda Games Ltd. said its net income edged higher in the second quarter, as an unrealized gain related to foreign currency forward contracts helped offset lower revenue for the online game developer.
The Shanghai company also announced late Sunday that Chairman and Chief Executive Qunzhao Tan has resigned, citing the company's performance in recent quarters and his health. He will remain a member of the company's board of directors.
Xiangdong Zhang, Shanda's chief operating officer, will take over as CEO. Tianqiao Chen, a member of the board, was named chairman.
The company's American depositary shares were up 12 cents, or 3.6 percent, to close at $3.45.
For the three months ended June 30, the Shanghai company reported net income rose about 1 percent to 308.4 million yuan ($48.8 million) from 305.2 million a year earlier. Shanda said it earned 17 cents per American depositary share in the latest quarter.
Revenue fell 14 percent to 1.13 billion yuan ($178.7 million) from 1.32 billion yuan.
All told, 92 percent of total revenue was generated from online games in China. The rest was derived from overseas game licensing, operations and advertising.
Revenue from online games in China fell 16 percent from a year earlier to 1.04 billion ($164.5 million), Shanda said.
The drop-off in revenue came about as the company recorded sequential declines in average monthly active users, average monthly paying users and average revenue per paying users for games operated in China.
Shanda noted that it delayed the launch of a major expansion pack for "Dragon Nest" until the third quarter and took other steps in the first quarter to improve gameplay and prolong the life cycle of its "Mir II" and "Woool" games, which contributed to the sequential decline in online game revenue.