Weibo’s net loss shrinks in Q2 as revenue more than doubles

By Ding Yining | August 15, 2014, Friday |

Online Edition

Net loss of Sina's popular microblogging site Weibo shrank 56 percent from a year ago to US$15.4 in the second quarter as revenue more than doubled due to rising value-added services and e-commerce related income.

Sales of Weibo doubled from a year ago to US$77.3 million, with more than 75 percent of them contributed by advertising revenue, the Nasdaq-listed company said in a stock exchange filing today.

Thirty-nine percent of Weibo’s revenue came from mobile terminals and the company expects the trend to continue with the shift from desktop computers toward smartphones and tablet computers.

Its parent company Sina reported profit of US$16.6 million in the three months ended June 30, compared to a net loss of US$11.5 million from a year. Revenue rose 21 percent to US$187 million.

Sina also launched its own payment system and stepped up efforts to promote its Internet finance platform to allow users to purchase wealth management products, following other Internet giants including Alibaba and Baidu.

"Weibo has made measurable progress toward building out a commercial social platform and offering native advertising to large brand customers," Sina chief executive officer Charles Chao said in a statement.

Alibaba Group purchased an 18 percent stake in Weibo last year for US$586 million and the two companies have launched a series of partnerships, including allowing Taobao vendors to market their products to targeted users on Weibo.

It's also driving partnership with domestic TV programs and talent shows to drive usage and marketing income.

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Weibo’s net loss shrinks in Q2 as revenue more than doubles

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