Interactive Entertainment Online (NASDAQ: SNDA), one of China’s largest online game and content developers, is reporting Q4 2010 revenue of $232 million, beating the expected $217 million revenue, therefore earning 46 cents per share ahead of the expected 39 cent estimate.
Driving the potential revenue downward, even at a 2 percent year-over-year quarterly improvement, was a loss of 14 percent revenue due to the Shanda Games unit. Overall, Shanda’s online revenue saw a 9 percent drop during the same time period.
A buoying factor to Shanda’s financial report was the $61 million contribution (which was more than double last year) from its video unit, driven by the Shanda’s Ku6 online video site. Ku6 runs value-added services delivered to cell phones.
[Source: Barron's]
