Shanda Interactive Entertainment, the mainland's largest online game company, said the Olympic Games would have no impact on its third-quarter revenue which it expected to increase by up to 9 per cent from the previous quarter.
Third-quarter sales were expected to rise between 6 and 9 per cent from the previous quarter, the Shanghai-based company said. That beat the 6 per cent growth estimate by analysts.
'This is a relief for investors,' said Alicia Yap, an analyst at Citigroup.
Investors have been worried about Shanda's profits since July when analysts noted the firm was cutting the number of computer servers for major title, The Legend of Mir II.
That triggered shares of the Nasdaq-listed company to drop from about US$34 in June to about US$22 in mid-July. The stock closed at US$26.42 on Tuesday.
'That turned out to be a misunderstanding,' said Ms Yap. 'There was no significant drop in the number of users of Mir II. The company was just replacing old servers with newer and more powerful models.'
Investors had also been unnerved by a disappointing earnings report released last week by another game operator, Giant Interactive.
