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Charles Chao: Glad to See SINA Revenue Exceeds USD100mn
BEIJING, Nov 14, 2008 (SinoCast China IT Watch via COMTEX) --
SINA Corporation (Nasdaq: SINA) got GAAP net profit of USD 22 million and non-GAAP net profit of USD 26.8 million in the third quarter ended September 30, 2008, respectively jumping 28% and 40% from a year earlier, showed the company's fiscal report released on November 12.
In the period, the online media operator obtained operating revenues of USD 105.4 million, leaping 64%, exceeding its former expectations of USD 100 million to USD 104 million. Advertising revenues reached USD 76.2 million, rising 66%, exceeding former expectations of USD 75 million to USD 77 million; non- advertising revenues hit USD 29.2 million, hiking 58%, exceeding former expectations of USD 25 million to USD 27 million.
Advertising revenues from Mainland China reached USD 75.2 million, surging 68%, thanks to SINA's successful online report of Beijing 2008 Olympic Games, and the increase of advertising budgets by advertisers.
Mobile value-added services (MVAS) contributed to USD 27.1 million of non-advertising revenues, swelling 63%, owing to stable carrier strategy, government regulations, and market environment.
Charles Chao, CEO of SINA, points out that the company's quarterly operating revenues exceeded USD 100 million for the first time, indicating that SINA is leading the online media and online advertising market.
Although the macroeconomic situation is worsening, and the domestic advertising market is full of challenges after the Olympic Games, Charles Chao is confident that SINA will maintain its leading status with the popularization of Internet applications.
Gross margin reached 57%, and that of advertising business hit 58%, slightly dropping from a year ago, due to purchase of Internet contents relating to the Olympic Games. Non-GAAP advertising gross margin deducting stock returns and intangible assets amortization was 59%. That of MVAS reached 53%, because of rising costs of revenue sharing.
Operating costs hit USD 40.1 million including stock returns and intangible assets amortization, and USD 36.9 million deducting those expenditures, respectively hiking 62% and 60%, due to leaping marketing costs relating to the Olympic Games.
In the third quarter, SINA took helm of an Internet application developer with additional investments, incurring a loss of USD 800,000.
The company predicts that its fourth-quarter operating revenues will range from USD 98 million to USD 101 million; advertising revenues between USD 69 million and USD 71 million, and non-advertising revenues from USD 29 million to USD 30 million. Without gaining new stock options, stock returns will reach USD 3.8 million.
(USD 1 = CNY 6.82)
From www.hexun.com, Page 1, Thursday, November 13, 2008
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