In the face of massive competition from state-owned businesses, stalwarts like Youku Tudou, and mobile-only start-ups, Chinese Internet video website Letv.com says it's profits are bursting.
Letv.com published its unaudited annual performance pre-announcement for 2013, stating that the company expects to see net profit between CNY250 million and CNY270 million, a year-on-year increase of 30% to 40%.
Letv.com said during the entire year of 2013, the company's net profit attributable to shareholders reached between CNY252.452 million and CNY271.872 million. This marked an increase of 30% to 40% from the CNY194.194 million in the same period of the previous year.
The company pointed out the compared with 2012, the Chinese online video industry still maintained high-speed growth in 2013 and the scale of the industry continued to enlarge. Letv.com says it still achieved obvious synergy and the company's various main businesses realized stable growth.
In 2013, Letv.com's advertising business on video platforms increased by over 100% year-on-year. Meanwhile, the launch of its TV products had positive effect on the overall revenue of the company.