Chinese Internet portal Sina.com (SINA) announced its unaudited financial results for the second quarter ended June 30, 2006.
"We are very pleased with our outstanding performance for the second quarter. Our advertising revenues for the quarter hit another record high of US$29.5 million representing a 33% quarter-over-quarter growth, the highest sequential growth rate ever for advertising revenues in Sina's history." said Charles Chao, CEO of Sina.com.
For the second quarter of 2006, Sina reported net revenues of US$53.7 million, compared to US$46.1 million in the same period last year and US$46.7 million last quarter.
Advertising revenues for the second quarter of 2006 totaled US$29.5 million, representing a 45% increase from the same period last year and a 33% increase from last quarter. Advertising revenues in the second quarter of 2006 represented 55% of the company's total revenues, compared to 44% for the same period last year and 47% last quarter.
Operating expenses for the second quarter of 2006 totaled US$26.4 million, an increase of 30% from the same period last year and an increase of 20% from the previous quarter.
For the second quarter of 2006, gain on the sale of a business included a US$2.0 million gain from the sale of interests in the joint venture with NC Soft, a Korean online game company. Net income for the second quarter of 2006 was US$10.4 million, compared to US$10.0 million in the same period last year and US$7.0 million last quarter.
As of June 30, 2006, Sina's cash, cash equivalents and investments in marketable securities totaled US$312.5 million. Cash flow from operating activities for the second quarter of 2006 was US$8.1 million.
The company estimates its total revenues for the third quarter of 2006 to be between US$51.0 million and US$54.0 million, with advertising revenues to be between US$31.0 million and US$32.0 million and non-advertising revenues to be between US$20.0 million and US$22.0 million. Stock-based compensation for the third quarter of 2006 is expected to be approximately US$2.7 million, which excludes any new shares that may be granted.
