Sina Profit Rises - Update

(RTTNews) - Chinese online media company Sina Corp (SINA), Thursday reported an increase in profit for the fourth quarter, driven by higher advertising revenues and margins, with both earnings and revenue coming in ahead of Wall Street estimates.

Sina-controlled Weibo Corp. (WB) on Tuesday reported a smaller profit for the fourth-quarter, as higher operating costs offset increase in advertising revenues. Sina had spun off Weibo last year, however, continues to hold a majority stake.

Shanghai, China-based Sina's fourth-quarter profit rose to $59.8 million or $0.90 per share from $44.5 million or $0.59 per share last year.

Excluding items, adjusted profit dropped to $15.9 million or $0.24 per share from $33.0 million or $0.47 per share last year. On average, 13 analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Sina's revenues for the quarter grew 7 percent to $211.1 million from $197.0 million a year ago. Adjusted revenues increased 8 percent to $208.5 million from $192.3 million last year. Analysts had a consensus revenue estimate of $207.61 million for the quarter.

Advertising revenues grew 14 percent year-over-year to $181.9 million, while non-advertising revenue dropped to $29.2 million from $36.9 million last year.

Gross margin for the quarter improved to 65 percent from 64 percent last year.

Looking forward to the full year 2015, the company expects adjusted revenues of $800 million to $900 million. Analysts currently expect revenues of $884.59 million for 2015.

SINA closed Tuesday's trading at $36.20, down $0.30 or 0.82%, on the Nasdaq. The stock, however, gained $1.05 or 2.90% in after-hours trade.