Sina Q2 Profit Down, But Tops View

(RTTNews) - Chinese online media company Sina Corp. (SINA), Tuesday reported a drop in profit for the second quarter, hurt largely by higher costs and lower margins. However, both earnings and revenues for the quarter came in ahead of Wall Street estimates.

Shanghai, China-based Sina's second-quarter net income dropped to $11.7 million or $0.19 per share from last year's profit of $16.6 million or $0.25 per share.

Excluding items, adjusted earnings dropped to $0.06 per share from $0.17 per share a year ago. On average, 9 analysts polled by Thomson Reuters estimated earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Sina's revenues for the quarter rose 14 percent to $213.6 million from $187.0 million last year. Adjusted revenues increased 14 percent to $211.0 million from $184.4 million a year ago. Analysts had a consensus revenue estimate of $199.78 million for the quarter.

Advertising revenues grew 13 percent year-over-year to $176.3 million, driven by an increase of $28.3 million in Weibo advertising and marketing revenues. Meanwhile, non-advertising revenue rose to $37.3 million from $31.2 million last year.

Cost of revenues increased to $85.1 million from $73.6 million last year. Gross margin for the quarter declined to 60 percent from 61 percent last year.

SINA closed Tuesday's trading at $38.92, down $1.11 or 2.77%, on the Nasdaq. The stock, however, gained $0.73 or 1.88%, in the after-hours trade.