Sina Q2 profit triples on ads, despite rising Weibo costs

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.