Nov 15 Chinese internet company Sina Corp
eked out a profit in the third quarter that beat
analysts' estimates as strong advertising sales on its
microblogging platform offset weaker website advertising but it
forecast current-quarter revenue below expectations.
Shares of the company fell 6 percent to $49.72 in extended
trading. They closed at $53.10 on the Nasdaq on Thursday.
Sina expects adjusted net revenue to range between $132
million and $136 million in the fourth quarter, with advertising
revenues forecast to increase between 6 percent and 8 percent
from a year earlier.
Analysts on average were expecting revenue of $151.9
million, according to Thomson Reuters I/B/E/S.
Sina, which makes most of its revenue from online
advertising both on its website and through its microblogging
platform, Weibo, is facing stiff headwinds this year as firms
slash advertising budgets due to a worsening economic outlook.
Analysts said the spat between Japan and China over a few
uninhabited islands in the East China Sea may have affected
Sina's website advertising sales as Japanese automakers cut back
on advertising in China.
Net profit was $9.9 million for the September quarter,
compared to a loss of $336.3 million a year earlier. The profit
beat analysts' expectations of $7.5 million.
Sina's advertising revenue rose 19 percent to $120.6 million
in the third quarter, while non-advertising revenue rose 9
percent to $31.8 million. Overall net revenue was $152.4
million, up from $130.3 million, a year earlier.
The company started monetizing Weibo by offering special
services to business accounts and selling VIP memberships to
regular users earlier this year.
Weibo contributed about 10 percent to total advertising
revenue in the second quarter and had 368 million registered