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Online advertising brings Sina good news
By Ding Yining |
March 17, 2009, Tuesday
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Online Edition
Online Edition
SINA Corporation, China's biggest Internet portal, reported an over 50 percent year-on-year increase of profits for the past year as a result of online advertising.
Net income for the fiscal year of 2008 reached US$369.6 million, up 54 percent from to US$88.8 million, or US$1.47 per share, the company said in its annual financial report early today.
Net revenue in the past year added 50 percent to US$369 million with advertising income totaling US$258.5 million, accounting for 70 percent of its total revenue.
Profit for the last quarter of 2008 added 46 percent on the same period of the previous year but lowered 4 percent from the previous quarter to US$101.5 million.
The company set its total revenue for the first quarter of 2009 to between US$73 million and US$77 million, lower than the previous estimate of US$88 million in a Bloomberg News survey.
The company cited "low visibility of its advertising business" due to the negative effects brought by the current global financial turmoil to the domestic economy. Its shares tumbled 8.7 percent in after hours trading on Nasdaq yesterday.
Charles Chao, CEO of Sina noted that the impact has been "severe" in the first quarter as customers have delayed advertising budgets but showed confidence that the merger with Focus Media's out-of-home business would expand Sina's presence in the country's new media space.
The company announced on December 2008 that it would acquire all of Focus Media's digital out-of-home advertising networks in an all-stock transaction valued at US$1.8 billion.
Total market volume of domestic online advertising reached 18.0 billion yuan in 2008 but the growth rate would lower to around 20 percent in 2009 as a result of the shrinking marketing budget from the 71 percent in the previous year, according to iResearch Inc.
Net income for the fiscal year of 2008 reached US$369.6 million, up 54 percent from to US$88.8 million, or US$1.47 per share, the company said in its annual financial report early today.
Net revenue in the past year added 50 percent to US$369 million with advertising income totaling US$258.5 million, accounting for 70 percent of its total revenue.
Profit for the last quarter of 2008 added 46 percent on the same period of the previous year but lowered 4 percent from the previous quarter to US$101.5 million.
The company set its total revenue for the first quarter of 2009 to between US$73 million and US$77 million, lower than the previous estimate of US$88 million in a Bloomberg News survey.
The company cited "low visibility of its advertising business" due to the negative effects brought by the current global financial turmoil to the domestic economy. Its shares tumbled 8.7 percent in after hours trading on Nasdaq yesterday.
Charles Chao, CEO of Sina noted that the impact has been "severe" in the first quarter as customers have delayed advertising budgets but showed confidence that the merger with Focus Media's out-of-home business would expand Sina's presence in the country's new media space.
The company announced on December 2008 that it would acquire all of Focus Media's digital out-of-home advertising networks in an all-stock transaction valued at US$1.8 billion.
Total market volume of domestic online advertising reached 18.0 billion yuan in 2008 but the growth rate would lower to around 20 percent in 2009 as a result of the shrinking marketing budget from the 71 percent in the previous year, according to iResearch Inc.
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