Chinese wireless value-added service firm Linktone Ltd. unveiled its unaudited financial results for the third quarter ended September 30, 2010, and stated that gross revenues climbed, but profit was still small.
The company had gross revenues of USD19.8 million, representing 17% sequential increase compared with USD16.9 million in the second quarter of 2010, and 43% year-over-year growth compared with USD13.8 million in the third quarter of 2009. Linktone's GAAP net income from continuing operations was only USD0.6 million, compared with USD0.1 million in the second quarter of 2010 and USD0.6 million in the third quarter of 2009.
Data-related services revenue from SMS, MMS, and WAP was USD11.4 million, representing 58% of gross revenues, compared with USD9.7 million or 58% of gross revenues for the second quarter of 2010. The company says the sequential increase was primarily due to seasonal factors with business volume increasing during the Chinese summer school vacation period, as well as the contribution from PT Linktone Indonesia, in which Linktone acquired a majority stake during the quarter.
Audio-related services accounted for 20% of gross revenues, or USD3.8 million, compared with 18% of gross revenues, or USD3.0 million, for the second quarter of 2010. Linktone's sales of licensed edutainment and entertainment products in several Southeast Asian countries accounted for 21% of gross revenues, or USD4.2 million for the third quarter of 2010, compared with 23% of gross revenues, or USD3.9 million for the second quarter of 2010.
Selling and marketing expenses were USD2.2 million, compared with USD2.7 million for the second quarter of 2010 and USD3.1 million for the third quarter of 2009.
For the fourth quarter ending December 31, 2010, Linktone stated it anticipates gross revenues to be in the range of USD20.0 million to USD21.0 million including revenue from our VAS services, distribution of licensed products and other services.