Giant Interactive 1Q Profit Slides

NEW YORK (AP) — Shanghai-based online gaming company Giant Interactive Group Inc. posted a 32 percent decline in its first-quarter profit Monday, hurt in part by tax expenses and what the company attributed to "disruptions" caused by adjustments to the monetization structure of its flagship game.

For the three months ended March 31, the company earned 231.9 million yuan ($33.9 million), down from a profit of 338.7 million yuan in the same period a year earlier.

Earnings per American Depositary share totaled 15 cents per share in the latest quarter.

Revenue fell 21 percent to 373.5 million yuan ($54.7 million) from 471.6 million yuan a year earlier.

Analysts polled by Thomson Reuters were expecting a profit of 14 cents per ADS on sales of $55.5 million.

"Despite economic headwinds, we began 2009 on sound footing, with our results inline with guidance," said Yuzhu Shi, chairman and chief executive, in a statement.

"On a sequential basis, both revenue and gross profit showed improvement as gamers continued to adapt to the monetization structure and the enhanced features of our flagship game ZT Online," he added. "I believe the changes we have implemented provide us with a more balanced revenue model to extend the life cycle of ZT Online."

The company forecast revenue for the current quarter in the range of 343 million yuan to 373 million yuan ($50.3 million to $54.7 million).