Chinese Internet portal Sina.com (SINA) says net revenues increased 25% year-over-year and 10% quarter-over-quarter to US$70.7 million as it announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2007.
"We are pleased to report another quarter of solid results with record revenues and earnings. Our advertising business continues to be strong and for the first time in the last two years we saw a quarter-over-quarter increase in our mobile value-added service business," said Charles Chao, CEO of Sina.
For the fourth quarter of 2007, Sina reported net revenues of US$70.7 million, compared to US$56.4 million in the same period in fiscal 2006 and $64.3 million for the third quarter of 2007. Advertising revenues for the fourth quarter of 2007 totaled US$50.1 million, representing a 40% increase from the same period last year and a 9% increase from last quarter. The growth in advertising came mainly from China, which recorded advertising revenues of US$49.1 million for the fourth quarter of 2007, representing an increase of 41% from the same period last year and 10% sequentially.
Advertising revenues in the fourth quarter of 2007 represented 71% of total revenues, up from 63% in the same period last year.
Non-advertising revenues for the fourth quarter of 2007 totaled US$20.6 million, a 1% decrease from the same period in 2006 and an 11% increase over the previous quarter. Moble value-added services revenues amounted to US$18.6 million for the fourth quarter of 2007, representing a 3% decline from the same period in 2006 and a 12% increase quarter over quarter.
For fiscal 2007, Sina reported net revenues of US$246.1 million, compared to US$212.9 million in 2006. Advertising revenues for fiscal 2007 totaled US$168.9 million, an increase of 41% from 2006. The decline in non-advertising revenues came mostly from MVAS, which generated US$70.5 million in revenues for fiscal 2007, representing an 18% year-over-year decline.
Gross margin for the fourth quarter of 2007 was 62%, flat over the same period last year and last quarter.
Operating expenses for the fourth quarter of 2007 totaled US$28.3 million, an increase of 15% from the same period last year and 14% from last quarter. Operating expenses for fiscal 2007 were US$100.4 million, a 2% increase from fiscal 2006. Non-GAAP operating expenses were US$92.3 million for 2007, an increase of 4% from fiscal 2006.
Net income for the fourth quarter of 2007 was US$17.5 million, an increase of 49% from the same period last year and 2% from last quarter. Diluted net income per share for the fourth quarter of 2007 was US$0.29, compared to US$0.20 in the same period last year and US$0.28 last quarter. Net income for fiscal 2007 totaled US$57.7 million or US$0.97 diluted net income per share, compared to US$39.9 million or US$0.69 diluted net income per share for fiscal 2006.
As of December 31, 2007, Sina's cash, cash equivalents and short-term investments totaled US$478.0 million, compared to US$362.8 million and US$439.4 million as of December 31, 2006 and September 30, 2007, respectively.
The company estimates that its total revenues for the first quarter of 2008 will be between US$66 million and US$68 million, with advertising revenues to be between US$45 million and US$46 million and non-advertising revenues to be between US$21 million and US$22 million.
