Bloomberg News

Sina Unexpectedly Posts Profit as Advertising Sales Increase

February 19, 2013

Sina Corp. (SINA:US), owner of China’s largest Twitter-like service, unexpectedly posted a fourth-quarter profit as advertising sales increased.

Net income fell to $2.36 million from $9.28 million a year earlier, the New York-listed company said in a statement today. Analysts had expected a $900,000 loss, based on the average of seven estimates (SINA:US) compiled by Bloomberg. Sales rose 4.3 percent from a year earlier to $139.1 million.

Sina has boosted spending on development as the more than 400 million users of its Weibo micro-blog service increasingly post from mobile devices rather than personal computers. China’s slower growth has also damped advertising, hitting earnings at online companies including Baidu (BIDU:US) Inc. and Sohu.com Inc. Sina’s ad sales increased 7 percent to $110.7 million.

“Weibo needs a lot of development and money, especially for the advertising-promotion system,” Ma Yuan, a Hong Kong- based analyst at Bocom International Holdings, said before the announcement. She rates Sina neutral.

Sina predicted first-quarter non-GAAP sales of $115 million to $119 million, including advertising revenue of $94 million to $96 million, according to the statement.

Baidu, the operator of China’s largest search engine, posted the slowest profit growth in almost four years in the quarter ended December. Fourth-quarter net income at Sohu.com fell 9 percent, according to a Feb. 4 statement.

To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


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Companies Mentioned

  • SINA
    (SINA Corp/China)
    • $46.39 USD
    • -0.31
    • -0.67%
  • BIDU
    (Baidu Inc)
    • $183.32 USD
    • -1.62
    • -0.88%
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