Hurray Brings Dishonor To WVAS Companies Everywhere With Latest Figures

One day after announcing its merger with Enlight Media, Chinese wireless value-added service company Hurray (HRAY) says its total quarterly revenue for the third quarter ended September 30, 2007 was a weak US$13.6 million, a decline of 6.5% quarter-over-quarter and 23.9% year-over-year.

The wayward company's wireless value-added services revenues only hit US$11.4 million, a decline of 10.7% quarter-over-quarter and 30.6% year-over-year. However recorded music revenues were US$2.2 million, a growth of 22.8% quarter-over-quarter and 47.8% year-over-year. Software and system integration services revenues were a paltry US$4,000 — far less than what they might have raised panhandling in Zhongguancun.

The company's total net loss was US$11.5 million.

Commenting on the incredibly lackluster third quarter results, QD Wang, chairman and CEO of Hurray said, "Q3 was extremely challenging for us because the operating environment continued to deteriorate and we missed our revenue guidance. China Unicom's new revenue confirmation policy had a major impact on our business with them and the recent changes in policies by regulatory authorities and operators affecting particularly wireless applications for TV programs as well as WAP portal services have further limited our ability to generate profitable WVAS business. In light of these recent changes, we took an impairment charge of US$9.6 million in this quarter. However, our efforts in carrying out our content strategy made further progress as our music business produced growth of 22.8% quarter over quarter and 47.8% year over year generating revenues of US$2.2 million. We are confident about the prospect of transforming Hurray into a leading entertainment production and distribution house in China."

As of September 30, 2007, the company had US$64.8 million in cash and cash equivalents.