Sina Rises a Day After Earnings Drop
SHANGHAI (
) -- As costs increased and online ad sales slumped, net income for Chinese media portal
Sina
(SINA) - Get Report
were pushed down by 41% in the second quarter.
Still, a day after the company's earnings release, Sina shares were rising $1.10 to $31.10 just after the opening bell.
On Monday, the company said that its net income fell to $13.3 million, or 23 cents per share, from $22.5 million, or 37 cents, in the year-earlier quarter. Taking out one-timers would have brought earnings per share to 29 cents.
Top-line results fell slightly to $90.3 million from $91.3 million last year, though second-quarter results bettered the previous quarter's totals. Advertising revenues fell 11%, while non-advertising revenue grew by 23%.
"While further improvement of our advertising business will depend on the depth and sustainability of the economic recovery in China, we are seeking opportunities in the current environment to play a more critical and expanded role to brand advertisers in China by leveraging SINA's leading online media platform, strong brand recognition and large, high-end user base," CEO Charles Chao said in a press release.
Looking ahead, the company underwhelmed in announcing that third-quarter revenues would likely land between $91 million and $94 million. According to the average of analysts surveyed by Thomson Reuters, street expectations centered on $96.1 million in sales.
Earlier today, a report circulated that Sina was considering
changes to its $1.4 billion deal for
Focus Media
(FMCN)
.
-- Written by Sung Moss in New York
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