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Sohu.com Reports Higher Internet Advertising Revenue, But Drop In Wireless Services

Chinese online services company Sohu.com Inc. today reported unaudited financial results for the second quarter ended June 30, 2010.

Total revenues for the second quarter ended June 30, 2010 were USD146.1 million, up 15% year-over-year and 13% quarter-over-quarter. Of that total, brand advertising revenues totaled USD53.2 million, up 22% year-over-year and 35% quarter-over-quarter, and online game revenues were USD77.7 million, up 17% year-over-year and 8% quarter-over-quarter. Wireless revenues were only USD11.1 million, down 26% year-over-year and 17% quarter-over-quarter.

Gross margin was 73% for the second quarter of 2010, compared with 75% in the first quarter of 2010 and 77% in the second quarter of 2009. Non-GAAP gross margin for the second quarter of 2010 was 74%, compared with 75% in the first quarter of 2010 and 78% in the second quarter of 2009.

For the second quarter of 2010, Sohu's operating expenses totaled USD56.0 million. Non-GAAP operating expenses totaled USD50.8 million, up 18% sequentially from USD43.0 million and up 17% year-over-year. The year-over- year increase primarily reflects an increase in marketing expenses, stated the company.

For the second quarter of 2010, excluding non-cash income tax expense of USD0.6 million recorded for tax benefits from share-based awards, non-GAAP income tax expense was USD5.7 million, compared with USD7.4 million in the previous quarter.

Before deducting the share of net income pertaining to the non-controlling interest, GAAP net income for the second quarter of 2010 was USD45.5 million, up 7% year-over-year and 10% quarter-over-quarter. Non-GAAP net income for the second quarter of 2010 was USD52.5 million, up 7% year-over-year and 9% quarter-over-quarter, exceeding the company's guidance by USD2 million.

Sohu group continued to maintain a debt-free balance sheet and a strong cash position of USD599.1 million as of June 30, 2010.

Sohu estimates total revenues for the third quarter of 2010 to be between USD153.0 million and USD158.0 million, with advertising revenues of USD61.0 million to USD63.0 million.

Other China Tech Buzz:

As part of its continuous efforts to bring a fun and seamless online shopping experience to more Filipinos across the country, Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, expands its serviceable areas through the establishment of new Shopee Xpress hubs across Mindanao. Through these new hubs in Davao City, Davao Del Sur, Davao Del Norte, and other areas, local sellers are provided with greater opportunities to expand their business through e-commerce and compete at a national level. For Davao to Davao purchases, both shoppers and sellers can now enjoy shorter delivery times. Shopee also partnered with the Department of Trade and Industry (DTI) to hold its first Shopee University Roadshow in Davao City. The masterclass educated Davao-based sellers on how to grow their businesses with e-commerce and onboarded new sellers to improve the overall online selling experience for Filipinos. Shopee also held another live seller engagement event in Davao City, Shopee Kumustahan, wherein representatives from the platform held roundtable discussions with local Shopee sellers to know more about their experience and get insights on what can help drive their business forward. Shopee Philippines Seller Communications and Education Lead Mia Mendoza, SY Glow Cosmetics shop owner Lou Putian, and Cacao Culture shop owner Sheila Lao at the Shopee Kumustahan event in Davao City “Here at Shopee, we are always driven by our objective to make e-commerce accessible to everyone. Through the Mindanao hub expansions and conducting educational workshops, our goal is to equip local sellers and business owners with the necessary knowledge and tools to make the most out of their e-commerce journey with Shopee,” shared Martin Yu, Director at Shopee Philippines. If you want to grow your business online and enjoy the numerous benefits of e-commerce, start your online selling journey with Shopee today. Download the Shopee app for free via the App Store or Google Play. – the chinitosanti chronicles

June 25, 2022
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