SINA Reports Fourth Quarter 2012 Financial Results

19 February 2013 19 h 53 min Comments Off

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SHANGHAI, China—February 19, 2013—SINA Corporation (NASDAQ GS: SINA), a leading online media company serving China and the global Chinese communities, today announced its unaudited financial results for the fourth quarter ended December 31, 2012.

        Fourth Quarter 2012 Highlights

  Net revenues increased 4% year over year to $139.1 million. Non-GAAP net revenues increased 4% year over year to $134.4 million, within the Company’s guidance between $132.0 million and $136.0 million.

  Advertising revenues grew 7% year over year to $110.7 million, within the Company’s guidance between $110.0 million and $112.0 million.

  Non-advertising revenues decreased 4% year over year to $28.5 million. Non-GAAP non-advertising revenues decreased 5% year over year to $23.8 million, reaching the high end of the Company’s guidance between $22.0 million and $24.0 million.

  Net income attributable to SINA was $2.4 million, or $0.03 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $9.0 million, or $0.13 non-GAAP diluted net income per share attributable to SINA.

  Fiscal 2012 Highlights

  Net revenues increased 10% year over year to $529.3 million. Non-GAAP net revenues increased 10% year over year to $510.6 million.

  Advertising revenues grew 12% year over year to $412.9 million.

  Non-advertising revenues increased 2% year over year to $116.4 million. Non-GAAP non-advertising revenues increased 2% year over year to $97.7 million.

  Net income attributable to SINA was $31.7 million, or $0.47 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $10.4 million, or $0.15 non-GAAP diluted net income per share attributable to SINA.

  “2012 was a year of investment for SINA. We are delighted that Weibo continued to gain popularity and Weibo monetization was off to a good start,” said Charles Chao, CEO and Chairman of SINA. “In 2013, we will continue to improve user experience and expand the scale of Weibo monetization, while turn our focus to mobile Internet for all of our major product lines.”

  Fourth Quarter 2012 Financial Results

  For the fourth quarter of 2012, SINA reported net revenues of $139.1 million, compared to $133.4 million for the same period last year. Non-GAAP net revenues for the fourth quarter of 2012 totaled $134.4 million, compared to $128.7 million for the same period last year.

  Online advertising revenues for the fourth quarter of 2012 were $110.7 million, compared to $103.7 million for the same period last year. Non-advertising revenues for the fourth quarter of 2012 totaled $28.5 million, compared to $29.7 million for the same period last year. Mobile value-added services (“MVAS”) revenues for the fourth quarter of 2012 decreased 38% year over year to $13.2 million, while the rest of non-GAAP non-advertising revenues grew 181% to $10.6 million, mainly from Weibo value added services (“VAS”). As the market in China shifts towards mobile Internet, the Company expects to further reallocate its resources away from the low-margin MVAS business to Weibo VAS.

  Gross margin for the fourth quarter of 2012 was 57%, compared to 54% for the same period last year. Advertising gross margin for the fourth quarter of 2012 was 56%, the same as the corresponding period last year. Non-GAAP advertising gross margin for the fourth quarter of 2012 was 57%, also the same as last year. MVAS gross margin for the fourth quarter of 2012 was 45%, compared to 35% for the same period last year, due to a shift in product mix.

  Operating expenses for the fourth quarter of 2012 totaled $73.8 million, compared to $66.7 million for the same period last year. Non-GAAP operating expenses for the fourth quarter of 2012 were $69.0 million, compared to $62.3 million for the same period last year. The increase in non-GAAP operating expenses was primarily due to higher personnel costs, lease expenses and infrastructure spending, which were partially offset by lower marketing expenditures.

  Income from operations for the fourth quarter of 2012 was $5.6 million, compared to $6.0 million for the same period last year. Non-GAAP income from operations for the fourth quarter of 2012 was $6.4 million, compared to $6.7 million for the same period last year.

  Non-operating loss from for the fourth quarter of 2012 was $2.1 million, compared to a non-operating income of $3.8 million from the same period last year. Non-operating loss in the fourth quarter of 2012 included $4.4 million in losses from equity investments, or $0.4 million in losses on a non-GAAP basis, which were accounted for under the equity-method accounting and reported on a one-quarter lagging basis.

  Net income attributable to SINA for the fourth quarter of 2012 was $2.4 million, compared to $9.3 million for the same period last year. Diluted net income per share attributable to SINA for the fourth quarter of 2012 was $0.03, compared to $ 0.14 for the same period last year. Non-GAAP net income attributable to SINA for the fourth quarter of 2012 was $9.0 million, compared to $14.0 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA for the fourth quarter of 2012 was $0.13, compared to $0.21 for the same period last year.

  As of December 31, 2012, SINA’s cash, cash equivalents and short-term investments totaled $713.6 million, compared to $673.5 million as of December 31, 2011. For the fourth quarter of 2012, cash provided by operating activities was $33.5 million, capital expenditures totaled $17.9 million and depreciation expenses amounted to $7.5 million.

  Business Outlook

  SINA estimates that its non-GAAP net revenues for the first quarter of 2013 will be between $115 million and $119 million, including advertising revenues to be between $94 million and $96 million, and non-GAAP non-advertising revenues to be between $21 million and $23 million. Non-GAAP net revenues and non-GAAP non-advertising revenues exclude the recognition of $4.7 million in deferred license revenues related to SINA’s equity investment in E-House/CRIC.

        full press release

        About SINA

  SINA is an online media company serving China and the global Chinese communities. Our digital media network of SINA.com (portal), SINA.cn (mobile portal) and Weibo.com (social media) enable Internet users to access professional media and user generated content in multi-media formats from the web and mobile devices and share their interests with friends and acquaintances.

        SINA.com offers distinct and targeted professional content on each of its region specific websites and a range of complementary offerings. SINA.cn provides information and entertainment content from SINA portal customized for WAP users. Based on an open-platform architecture to host organically developed and third-party applications, Weibo.com is a form of social media, featuring micro-blogging services and social networking services that allow users to connect and share information anywhere, anytime and with anyone on our platform.

 

 

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