Sina Q2 profit triples on ads, despite rising Weibo costs

Summary:Chinese Internet company reports second quarter profit of US$33.2 million, plays down rising costs in microblogging platform Weibo as investment to boost to brand name.

Chinese Internet company Sina reported a net income of US$33.2 million during the second quarter of 2012--up from US$10 million from last year, driven by growth in advertising revenues.

In its results released Thursday, the company said net revenues increased 11 percent year-over-year to US$131.6 million for the three months ended June. Sina added that its non-GAAP (generally accepted accounting principles) revenues which also grew 11 percent year-over was within guidance at US$126.9 million.

The earnings were lifted by better advertising revenue, which jumped 12 percent year-on-year to US$103.1 million, inline with its guidance between US$103 million and US$105 million. Non-advertising revenue rose 5 percent year-on-year to US$28.5 million, said Sina.

Charles Chao, CEO of Sina, said in the statement: "We are pleased to continue to grow Sina's online advertising business despite a challenging macroeconomic environment in China.

"Our investment in Weibo.com is showing continued traffic momentum, which helps strengthen Sina's brand, media influence and high-end user reach as well as positions Sina to grow market share in online advertising," Chao added.

However, the microblogging platform was also the main reason for increased costs mainly due to personnel-related expenses and infrastructure spending, said Sina. This drove up oeverall operating expenses to US$69.8 million from US$59.7 million last year. However, it added this was partially offset by a decrease in marketing expenditure.

Topics: Tech Industry, China, E-Commerce

About

The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate mas... Full Bio

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.