China's biggest Web portal Sina Corp reported its profit jumped 74 percent in the second quarter of this year backed by soaring advertising income.
Its net income grew to US$25.2 million, or 42 cents a share, and its revenue soared 53 percent to US$91.3 million in the period, beating its estimate of US$90 million, Sina said yesterday.
The Shanghai-based company's online ad income grew 58 percent to US$64.9 million and non-ad revenue rose 42 percent to US$26.4 million.
"We are very proud of our record revenue and earnings in the second quarter. Our online advertising business in China, in particular, continues to be robust, growing 58 percent year on year, and was a major driving force in allowing us to achieve a net income growth of 74 percent year on year," said Charles Chao, CEO of Sina. "We expect Sina's advertising momentum to further accelerate in the third quarter, as we are prepared to provide an unprecedented online media coverage of the Beijing Olympic Games."
Sina predicts its third-quarter revenue between US$100 million and US$104 million, with ad income at US$75 million to US$77 million.
Credit Suisse said in a report that Sina's ad business will continue to grow next year backed by its status in the industry, excellent sales team and brand value.
(Shanghai Daily August 8, 2008)
