The Digital Source For China's Tech Innovation Since 2000

Search
Close

Sohu.com Quarterly Earnings Drop

October 27, 2006
Internet

Chinese web portal Sohu.com (SOHU) says its net earnings fell to US$6.6 million, from US$8.03 million a year ago, as it reported unaudited financial results for the third quarter ended September 30, 2006.

Total revenues for quarter totaled US$35.4 million, compared to revenues of US$34.1 million for second quarter ended June 30, 2006, and US$27.4 million for third quarter ended September 30, 2005.

Gross margin was 65% in the third quarter of 2006, compared to 64% in the previous quarter and 67% in the same period of 2005. Non-GAAP gross margin of 66% in third quarter of 2006 remained at similar levels compared with 65% in the previous quarter and 67% in the same period of 2005.

Net income for the third quarter was US$6.6 million or US$0.17 per fully diluted share. Non-GAAP net income for third quarter of 2006 was US$8.5 million or US$0.22 per fully diluted share. This compares to non-GAAP net income of US$8.4 million or US$0.22 per fully diluted share for the previous quarter and US$8.0 million or US$0.21 per fully diluted share for third quarter of 2005.

Sohu's advertising revenues for third quarter of 2006 totaled US$23.9 million, a 27% year-on-year and 5% quarter-on-quarter growth. Advertising revenues, consisting of US$21.0 million in brand advertising and US$2.9 million in sponsored search, accounted for 67% of total revenues in third quarter of 2006.

Brand advertising revenues for third quarter of 2006 were US$21.0 million, an increase of 35% year-on-year and 9% quarter-on-quarter. Sponsored search revenues for third quarter of 2006 were US$2.9 million, down 10 % year-on-year and 19% quarter-on quarter, mainly due to further enhancement of Sohu's anti-fraudulent click mechanism and a decrease in revenues from fixed-fee paid listing.

For the first nine months of 2006, brand advertising revenues and sponsored search revenues grew 37% and 9% year-on- year, respectively. Advertising gross margin was 69%, compared to 70% in the previous quarter and 74% in the third quarter of 2005. Advertising non-GAAP gross margin was 71%, unchanged from the previous quarter and a decline from 74% in third quarter of 2005.

For third quarter of 2006, Sohu's non-advertising revenues, which are derived mainly from wireless value-added services and online games, increased by 34% year-on-year and 2% quarter-on-quarter to US$11.5 million, representing 33% of total revenues.

Wireless revenues for third quarter of 2006 totaled US$8.8 million, a modest decline of 2% from the previous quarter despite new policy changes by the mobile network operators and up 31% over the same period last year.

For the third quarter, Sohu's operating expenses was US$16.9 million. Non- GAAP operating expenses totaled US$15.4 million, an increase of 7% from the previous quarter and 39% year-on-year.

As of September 30, 2006, Sohu's cash, cash equivalents and investments in marketable debt securities balance was US$120.0 million, compared to US$132.9 million as of June 30, 2006 and US$133.1 million as of December 31, 2005.

Sohu estimates total revenues for fourth quarter 2006 to be between US$34.0 million to US$36.0 million, with advertising revenues of US$24.0 million to US$25.0 million and non-advertising revenues of US$10.0 million to US$11.0 million. Sohu estimates brand advertising revenues for the fourth quarter 2006 to be between US$21.5 million to US$22.0 million.

Tags: advertising | brand | cash | Chinese | fee | finance | financial | GAAP | games | IT | listing | mobile | network | online | portal | search | share | Sohu | Total | Web | web portal | Wireless | wireless value-added services

Other Related News:

Report: China Demanded Stealth TikTok Account for Propaganda to West

July 31, 2022

Crypto Regulations to Hit China In 2019

December 15, 2021

Chinese Spies Exploit Log4Shell to Hack Major Academic Institution

December 30, 2021

Intel apologizes, but angered Chinese netizens demand revocation of Xinjiang boycott statement

December 25, 2021

CDC Games Announces Restructuring Plan

November 20, 2006

Fmr LLC Sells 638,550 Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

October 8, 2021

A central bank cryptocurrency? The U.S. should reject it

November 6, 2022

Willingness of Chinese Men Who Have Sex With Men to Use Smartphone-Based Electronic Readers for HIV Self-testing: Web-Based Cross-sectional Study

November 20, 2021

China regulator says government policies not necessarily linked to overseas IPOs

December 6, 2021
  • Contact Us
  • About Us
  • Corrections and Disclosure
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • About Us
  • Corrections and Disclosure
  • Privacy Policy
  • Terms & Conditions
© 2023 ChinaTechNews.com. A Service of Asia Media Network.
Twitter