Shanda, the Chinese online gaming company, has released its un-audited financial results for the fourth quarter and full year ending December 31, 2006. It has reported a 7.7% increase in its net revenues compared with the previous quarter.

In the fourth quarter of 2006, Shanda accounted total net revenues of RMB 470.6 million (60.7 million USD), representing a 7.7% increase compared to RMB 436.8 million (56.3 million USD) in the third quarter of 2006 and a 30.5% increase from RMB 360.5 million (46.5 million USD) in the same period of 2005. For the full year, ending December 31, 2006, total net revenues were RMB 1,654.5 million (213.3 million USD), a 12.8% decrease from 2005. 

Online game revenues in the fourth quarter of 2006 reported a 10.0% quarter-over-quarter increase and 44.3% year-over-year increase to RMB 450.0 million (58.0 million USD).

Revenues from MMORPGs (Massive Multiplayer Online Role Playing Games) in the fourth quarter of 2006 increased 13.8% quarter-over-quarter and increased 63.9% year-over-year to RMB 378.0 million (48.7 million USD), accounting for 80.3% of total revenues. The sequential growth in MMORPG revenues has mainly resulted from increased revenues as a result of releasing new expansion packs for its two online visual games (Mir II and Woool). For the year 2006, revenues from MMORPGs were RMB 1,240.1 million (159.9 million USD), a 1.2% decrease from 2005.

Revenues from casual games in the fourth quarter of 2006 were a 6.2% quarter-to-quarter and 11.4% year-on-year decrease to RMB 72.0 million (9.3 million USD). The sequential decline in revenues from casual games was primarily due to seasonality, following the summer holiday in the third quarter of 2006. For the full year of 2006, revenues from casual games were RMB 302.8 million (39.0 million USD), down 24.9% from the 2005.

Shanda's other revenues in the fourth quarter of 2006 decreased 25.6% quarter-to-quarter and 57.7% year-on-year to RMB 20.6 million (2.7 million USD). This slide in profits was primarily caused by a decline in sales of EZ Products in 2006. Other revenues for the company were RMB 111.6 million (14.4 million USD), a decrease of 53.2% from the year 2005.

Gross profit for the fourth quarter of 2006 was RMB 296.2 million (38.2 million USD), representing a 20.7% increase compared to RMB 245.5 million (31.7 million USD) in the third quarter of 2006 and a 37.1% increase from RMB 216.1 million (27.9 million USD) in the fourth quarter of 2005.

In the fourth quarter of 2006, Shanda had a net income of RMB 240.3 million (31.0 million USD), compared to a net income of RMB 143.5 million (18.5 million USD) in the third quarter of 2006 and a net loss of RMB 538.9 million (69.5 million USD) in the same period of 2005.

Shanda Interactive Entertainment Limited (Nasdaq: SNDA) is the largest operator of online games in China and it hosts several of China's most popular online games. Shanda has an expansive portfolio of online games covering both large multi-player game playing and casual play on the Internet.