By RTT News,
August 14, 2014, 06:56:00 PM EDT
(RTTNews.com) - Chinese online media company Sina Corp ( SINA ) Thursday reported a swing to profit for the second quarter, due mainly to strong performance by its microblogging site Weibo and higher advertising revenues. Earnings for the quarter trumped Wall Street estimates, as did revenues. Shares of Sina gained six percent in the after-hours trade, following the news.
Sina-controlled Weibo Corp. ( WB ) also on Thursday reported a narrower second-quarter loss, as increase in numbers of users drove advertising revenues.
Sina's CEO Charles Chao said, "Weibo is executing well with strong financial performance, solid traffic growth and measurable progress toward building out a social commerce platform and offering native ads to large brand customers."
Early this year, Sina spun off Weibo, however, continues to hold a majority stake. Chinese eCommerce firm Alibaba Group also holds a significant stake in Weibo.
Shanghai, China-based Sina reported a second-quarter profit of $16.6 million or $0.25 per share, compared to loss of $11.5 million or $0.17 per share.
Excluding items, adjusted earning for the quarter were $12.1 million or $0.17 per share. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Sina's revenues for the quarter grew to $187.0 million from $157.5 million last year. Adjusted revenues rose to $184.4 million from $152.8 million last year. Analysts had a consensus revenue estimate of $179.20 million for the quarter
Advertising revenues for the quarter grew 29 percent year-over-year to $155.8 million, while non-advertising revenue dropped to $31.2 million from $36.9 million last year.
Gross margin for the quarter improved to 61 percent from 54 percent last year.
Looking forward to the third quarter, Sina expects its adjusted revenues between $193 million and $199 million. Analysts currently expect revenues of $199.12 million for the quarter.
Weibo's second-quarter loss narrowed to $15.4 million or $0.08 per share from $35.1 million or $0.24 per share last year.
Adjusted loss narrowed to $4.9 million or $0.03 per share from $11.2 million or $0.08 per share last year. Analysts expected a loss of $0.03 per share for the quarter.
Revenues for the quarter more than doubled to $77.3 million from $37.6 a year ago. Analysts had a consensus revenue estimate of $75.87 million for the quarter.
Weibo said number of daily active users were 69.7 million on average for June 2014, an increase of 32 percent year over year.
For the third quarter, Weibo expects revenues of $79 million to $82 million, while analysts currently expect revenues of $80.15 million.
SINA closed Thursday's trading at $47.82, down $0.18 or 0.38%, on the Nasdaq. The stock further gained $2.48 or 5.19% in after-hours trade.
WB closed Thursday's trading at $21.46, up $1.14 or 5.61%, on the Nasdaq. However, the stock lost $0.90 or 4.19% in after-hours trade.
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