Sina released 2018 Q1 unaudited earnings net revenue of $440 million 800 thousand

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 Sina released 2018 Q1 unaudited earnings net revenue of $440 million 800 thousand


Since January 1, 2018, the company began to adopt a new income criterion, customer contract income, in accordance with the revised traceability method. The scope of application includes contracts that have not been completed in January 1, 2018. Under the revised tracing method, the income published after January 1, 2018 was compiled (the new foundation) in accordance with the new income guidelines, and the income published before January 1, 2018 was compiled in accordance with the old income criteria (the old compilation basis). The new compilation basis requires income to be shown in accordance with the net value of the deductible VAT (VAT) rather than the total amount, resulting in a decrease in the amount of income and cost. In addition, the new basis for advertising swap transactions (hereinafter referred to as swaps) requires that the relevant income and expenses be recognized according to fair value. In view of the adoption of the new revenue guidelines, the effect of the uncompleted swap transaction in January 1, 2018 was about $300 thousand. The impact of the new income criteria on the companys current financial results is shown below: Performance focus of the first quarter of 2018 Net revenue and non GAAP net revenue increased 59% over the same period last year, to $440 million 800 thousand and $438 million 100 thousand respectively. Advertising revenue grew 61% from last year to $367 million 100 thousand. Non advertising revenue grew 47% from last year to $73 million 700 thousand. Non US GAAP non advertising revenue increased 50% over the same period last year, to $71 million 100 thousand. Operating profit increased 63% from last year to $73 million 300 thousand. Non US GAAP operating profit increased 49% over the same period last year to $94 million 600 thousand. Sinas net profit should be $28 million 700 thousand, or 38 cents per diluted share. The non US general accounting standards (Sina) accounted for $35 million 200 thousand of net profit and 47 cents per diluted net income. Business performance in the first quarter of 2018 Net revenue in the first quarter of 2018 was $440 million 800 thousand, an increase of 59% over the same period of $278 million 100 thousand in the same period last year. In the first quarter of 2018, net non US GAAP revenue was $438 million 100 thousand, an increase of 59% over the same period of 275 million 500 thousand US dollars in the same period last year. Advertising revenue in the first quarter of 2018 was $367 million 100 thousand, an increase of 61% over the same period of $228 million in the same period last year. In the first quarter, the year-on-year increase in advertising revenue was mainly due to the annual growth of micro-blog advertising and marketing revenue of 133 million 700 thousand US dollars, an increase of 79%. Non advertising revenue in the first quarter of 2018 was $73 million 700 thousand, an increase of 47% over the same period of $50 million 100 thousand in the same period last year. Non US GAAP non advertising revenue in the first quarter of 2018 was $71 million 100 thousand, an increase of 50% compared with $47 million 500 thousand in the same period last year. The year-on-year growth of non advertising revenue is mainly due to the increase in micro-blog game and membership fees, and the growth of sinas financial technology business. Gross profit margin was 75% in the first quarter of 2018, compared with 69% in the same period last year. The gross profit margin of advertising business in the first quarter of 2018 was 77%, compared with 70% in the same period last year. The gross profit margin of non advertising business in the first quarter of 2018 was 65%, compared with 62% in the same period last year. The growth of gross profit margin in advertising and non advertising business is directly derived from the companys adoption of new US income guidelines. Operating expenses for the first quarter of 2018 amounted to $258 million 800 thousand, compared with $146 million 500 thousand in the same period last year. In addition to the exchange related marketing spending identified by the new income guidelines, the first quarter operating expenditure increased mainly from the increase in marketing activities, the increase in sales and marketing expenditures resulting from the promotion of micro-blog and Sina News client users, as well as production related to human costs. And the growth of R & D expenditure. Non US GAAP operating expenses in the first quarter of 2018 amounted to $237 million 300 thousand, compared with $127 million 400 thousand in the same period last year. Operating profit in the first quarter of 2018 was $73 million 300 thousand, an increase of 63% over the same period of $45 million in the same period last year. In the first quarter of 2018, the operating profit margin was 17%, more than 16% in the same period last year. In the first quarter of 2018, non US GAAP operating profit was $94 million 600 thousand, up 49% from 63 million 700 thousand US dollars in the same period last year. In the first quarter of 2018, the non US GAAP operating margin was 22%, slightly less than 23% of the same period last year. Non operating profit in the first quarter of 2018 was $22 million 600 thousand, compared with $30 million 300 thousand in the same period last year. Non operating profits in the first quarter of 2018 included (1) net interest and other income of $17 million 100 thousand; (2) the net income from the sale of investment, the change of fair value of investment and the reduction of investment value was $7 million 200 thousand. This income was not included in non operating profit based on non US general accounting standards; and (3) a loss of $1 million 800 thousand in equity investment, The gains and losses of the equity investment were deferred for one quarter, mainly from the companys losses on the investment of Locke Holdings Limited. Non operating profit in the first quarter of 2017 included (1) the net income associated with the sale of investment and investment value of $15 million 900 thousand, which is not included in non - operating earnings based on non - US general accounting standards; (2) income of 5 million dollar dividends and interest income of $6 million 200 thousand from partial investment; (3) $3 million 100 thousand equity The income of the investment is mainly derived from the companys investment in the pigeon interactive holding company, which is calculated on the basis of the equity law, and the proceeds or losses are deferred for one quarter. In the first quarter of 2018, the income tax expense was $18 million 800 thousand, compared with $13 million 800 thousand in the same period last year. The increase in income tax expenses is mainly due to the improvement of domestic profit level and the stable domestic effective tax rate. In the first quarter of 2018, Sinas common shareholders accounted for $28 million 700 thousand net profit, compared with $38 million 500 thousand in the same period last year. In the first quarter of 2018, Sinas common shareholders accounted for 38 cents per share, which was 52 cents a year earlier. In the first quarter of 2018, non US GAAP Sina common shareholders accounted for net profit of $35 million 200 thousand, compared with $37 million 600 thousand in the same period last year. In the first quarter of 2018, non US GAAP Sina common shareholders accounted for 47 cents per share and 50 cents a year earlier. As of March 31, 2018, the total amount of cash, cash equivalents and short-term investments of sina was $3 billion 400 million, equivalent to that of December 31, 2017. Net cash generated by operating activities in the first quarter of 2018 was $54 million 900 thousand, capital expenditure was $36 million 200 thousand, depreciation and amortization cost was $9 million 500 thousand. Source: NetEase science and technology report editor: Yao Liwei _NT6056 In the first quarter of 2018, Sinas common shareholders accounted for $28 million 700 thousand net profit, compared with $38 million 500 thousand in the same period last year. In the first quarter of 2018, Sinas common shareholders accounted for 38 cents per share, which was 52 cents a year earlier. In the first quarter of 2018, non US GAAP Sina common shareholders accounted for net profit of $35 million 200 thousand, compared with $37 million 600 thousand in the same period last year. In the first quarter of 2018, non US GAAP Sina common shareholders accounted for 47 cents per share and 50 cents a year earlier. As of March 31, 2018, the total amount of cash, cash equivalents and short-term investments of sina was $3 billion 400 million, equivalent to that of December 31, 2017. Net cash generated by operating activities in the first quarter of 2018 was $54 million 900 thousand, capital expenditure was $36 million 200 thousand, depreciation and amortization cost was $9 million 500 thousand.