Sina (SINA) has announced its financial results for the first quarter ended March 31, 2005. Net revenues for the quarter grew 11% year-over-year to $45.8 million, meeting the company's guidance of between $43.0 million and $47.0 million.
"Despite a seasonally weak quarter due to Chinese New Year and a tough regulatory environment, we grew both our advertising and non-advertising businesses year-over-year as well as meeting our guidance," said Wang Yan, CEO of SINA. "Looking ahead, we will streamline and refocus our energy on Sina's core strengths in Internet portal while continuing to explore new opportunities in the mobile value-added services."
As of March 31, 2005, Sina's cash, cash equivalents and investments in marketable securities totaled $283.4 million, an increase of $7.8 million from three months ago. Cash flow from operating activities for this quarter was $22.7 million, compared to $30.4 million for the previous quarter and $19.6 million for the same period in 2004.
Sina's advertising revenues for the quarter grew 27% year-over-year to $16.6 million, accounting for 36% of total revenues. Non-advertising revenues for the quarter grew 3% year-over-year to $29.2 million, accounting for 64% of total revenues.
US GAAP net income for the quarter decreased 36% year-over-year to $10.3 million, or $0.18 diluted net income per share. Non-GAAP net income for the quarter decreased 31% year-over-year to $11.5 million, or $0.20 diluted net income per share, meeting the company's guidance of between $11.0 million and $13.0 million. Non-GAAP net income for the quarter included $728K in fees for Sina's recent adoption of a shareholder rights plan and related legal and financial advisory services.
The ban on certain usage-based SMS products from television and radio commercials by the Chinese State Administration of Radio, Film and Television (SARFT) beginning February 2005, which Sina previously disclosed, significantly impacted Sina's SMS revenues. The company saw its first quarter SMS revenues declined 30% sequentially to $20.2 million; the majority of the decline was caused by the ban of certain usage-based SMS products from television and radio commercials. In addition, the change in China Mobile's billing procedures for MMS at the beginning of January caused the company's first quarter MMS revenues to decrease 50% sequentially to $2.2 million. The decline in SMS and MMS revenues was partially offset by the growth of other 2.5G products, IVR and other new services, which grew 69% to $4.0 million from the previous quarter.