Net revenues increased 53% year-over-year to USD91.3 million for Chinese Internet media company Sina.com (SINA) as it announced its unaudited financial results for the quarter ended June 30, 2008.
"Our online advertising business in China, in particular, continues to be robust, growing 59% year over year, and was a major driving force in allowing us to achieve a net income growth of 74% year over year. Sina's ability to improve profitability, in light of aggressive marketing and content acquisition by our online advertising competitors, further demonstrates Sina's unmatched leadership in brand equity, content and product offerings as well as media influence in the Chinese marketplace," said Charles Chao, CEO of Sina. "We expect Sina's advertising momentum to further accelerate in the third quarter, as we are prepared to provide an unprecedented online media coverage of the Beijing Olympic Games."
Advertising revenues for the second quarter of 2008 totaled USD64.9 million, growing 58% from the same period last year and 36% from last quarter. Advertising revenues in China grew 59% year over year, or 37% quarter over quarter, to USD64.3 million for the second quarter of 2008. Advertising revenues in the second quarter of 2008 represented 71% of total revenues, up from 69% in the same period last year and 67% in the previous quarter. Non-advertising revenues for the second quarter of 2008 totaled USD26.4 million, representing a 42% increase from the same period in 2007 and a 12% increase from the previous quarter. For the second quarter of 2008, mobile value-added services revenues, which accounted for 93% of non-advertising revenues, grew 44% from the same period last year and 13% from last quarter to USD24.5 million.
Gross margin for the second quarter of 2008 was 62%, compared to 62% in the same period last year and 59% in the last quarter. Operating expenses for the second quarter of 2008 totaled USD36.6 million, an increase of 49% from the same period last year and an increase of 28% from last quarter.
Net income for the second quarter of 2008 was USD25.2 million, compared to USD14.5 million in the same period last year and USD16.1 million last quarter.
As of June 30, 2008, Sina.com's cash, cash equivalents and short-term investments totaled USD540.9 million, compared to USD478.0 million as of December 31, 2007.