Sina Loss Widens, Outlook Weak; Stock Down - Update
By RTT News, May 21, 2014, 06:01:00 PM EDT
(RTTNews.com) - Chinese online media company Sina Corp ( SINA ) Wednesday reported a wider loss for the first-quarter, hurt by operating costs and one-time charges, even as revenues climbed over 35 percent. Excluding items, adjusted earnings for the quarter missed Wall Street estimates by a cent, while revenues surpassed expectations.
Moving forward, Sina provided some weak revenue outlook for the second quarter, sending its shares down by more than 5 percent in after-hours trade on the Nasdaq.
The Shanghai, China-based internet portal company reported a first-quarter net loss of $33.2 million or $0.52 per share, compared with a loss of $13.2 million or $0.20 per share last year.
Results for the quarter included $40 million related to change in fair value of investor option liability.
Excluding items, adjusted earning for the quarter were $11.1 million or $0.15 per share, compared with $1.5 million or $0.02 per share a year ago.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter jumped 36 percent to $171.5 million from $126 million in the prior year.
Adjusted revenues were $167.4 million, up 38 percent from $121.3 million last year. Fourteen analysts had a consensus revenue estimate of $165.25 million for the quarter.
Advertising revenue for the quarter grew 44 percent year-over-year, and non-advertising revenue was up 13 percent.
Operating expenses for the quarter were higher at $111.7 million, compared with $74.5 million last year.
For the second quarter, Sina projects adjusted revenues of $177 million to $182 million, while analysts expect $197.74 million.
Sina has been grappling with the receipt of government notices on revoking its internet publication and video licenses due to some indecent user-generated content posted on the online reading and video channels of its portal website.
The company has been working with the authorities and taking measures to modify the online reading and video channels of its portal website.
Sina said it is evaluating the impact of the administrative penalties on its portal operations and believes that the measures it has undertaken will have some impact on its revenues.
Meanwhile, Sina's subsidiary Weibo last month completed its initial public offering of 19.32 million shares on the Nasdaq. Weibo posted first-quarter revenues of $67.5 million, compared with $25.9 million last year.
Sina stock closed Wednesday at $47.86, up $0.61 or 1.29%, on a volume of 3.2 million shares. In after hours, the stock dropped $2.55 or 5.33% at $45.31.
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