Sina Q4 Results Top Estimates, Reportedly Plans $500 Mln IPO For Weibo Unit

(RTTNews) - Chinese online media company Sina Corp. (SINA) reported Monday a profit for the fourth quarter that soared from last year, reflecting significantly improved margins and strong double-digit revenue growth.

Stripping down the charges, both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided revenue forecast for the first quarter, in line with Street view.

Meanwhile, the company is also said to be planning an U.S. initial public offering of its Weibo unit in the second-half of the year. It has reportedly hired Credit Suisse Group AG and Goldman Sachs Group Inc. to run the $500 million IPO for the twitter-like microblogging service.

"The strong performance of Weibo's advertising and value-added services in the fourth quarter allowed us to end 2013 with strong top line and bottom line growth," Chairman and CEO Charles Chao said in a statement.

The Shanghai, China-based internet portal company reported net income of $44.45 million or $0.59 per share for the fourth quarter, sharply higher than $2.36 million or $0.03 per share in the prior-year quarter.

Excluding items, adjusting net income for the quarter was $33.0 million or $0.47 per share, compared to $8.99 million or $0.13 per share in the year-ago quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue totaled $197.0 million, up 42 percent from $139.1 million last year. Adjusted net revenues for the quarter surged 43 percent to $192.33 million from $134.44 million in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $191.93 million by a whisker.

Advertising revenues grew 45 percent year-over-year to $160 million, with Weibo advertising revenues soaring 163 percent year-over-year to $56.0 million.

Weibo non-advertising revenues also surged 114 percent to $15.4 million, driven by the launch of Weibo data licensing services as well as from the growth of other fee-based services, such as Weibo game revenue share and VIP membership fees.

Mobile value-added service or MVAS revenues declined to $11 million from $13 million a year ago, while other revenues increased to $26 million from $15 million a year ago.

Gross margin for the quarter improved 700 basis points to 64 percent from last year's 57 percent.

For fiscal 2013, the company reported net income of $45.13 million or $0.66 per share, higher than $31.74 million or $0.47 per share in the prior year. Excluding items, adjusting net income for the year was $77.27 million or $1.13 per share, compared to $10.37 million or $0.15 per share in the year ago.

Net revenue totaled $665.11 million, up 26 percent from $529.33 million last year. Adjusted net revenues for the full year grew 27 percent to $646.36 million from $510.58 million in the previous year.

Analysts expected the company to report full-year 2013 earnings of $1.10 per share on annual revenues of $647.70 million.

"As we enter 2014, we will continue to focus on growing Weibo's user base and user engagement through product innovation, as well as seizing opportunities to enable us for long term growth," Chao added.

Looking ahead to the first quarter, Sina estimates adjusted net revenues in a range of $162 million to $167 million, with Street currently looking for revenues of $165.20 million.

SINA closed Monday's regular trading session at $76.08, up $3.13 or 4.28% on a volume of 5.69 million shares. However, the stock lost $1.04 or 1.37% in after-hours trading.