Chinese mobile value-added services company Hurray (HRAY) has posted its unaudited financial results for the first quarter ended March 31, 2007.
In the company's press release, it said total revenues hit US$16.6 million, a decline of 2.2% quarter-over-quarter and 0.9% year-over-year, exceeding previous guidance of US$15.0-16.0 million
Putting a good spin on the results, Chairman and CEO QD Wang stated, "We are pleased to report a solid quarter which exceeded our previous estimate despite a challenging operating environment. Going forward, we will further our strategy of developing proprietary contents and diversifying distribution channels, while continuing our transformation into a leading entertainment content production and distribution house in China."
Total wireless value-added services revenues were US$14.9 million for the first quarter of 2007, a decline of 1.1% as compared with US$15.1 million in the previous quarter and growth of 3.3% as compared with US$14.5 million in the first quarter of 2006. Recorded music revenues, which represent revenues of the company's controlled music companies Hurray Freeland and Huayi Brothers Music, were US$1.5 million, a decline of 15.9% as compared with US$1.8 million in the previous quarter and growth of 0.7% as compared with US$1.5 million in the first quarter of 2006.
Total gross profit was US$5.4 million for the first quarter of 2007, representing growth of 2.6% as compared with US$5.3 million for the previous quarter and a decline of 10.2% as compared with US$6.1 million for the first quarter of 2006.
Total operating expenses were US$4.7 million for the first quarter of 2007, representing a decline of 0.8% as compared to US$4.7 million for the previous quarter and a decline of 10.7% as compared to US$5.3 million for the first quarter of 2006. Net income was US$1.0 million for the first quarter of 2007, representing a decrease of 38.9% as compared to US$1.6 million for the previous quarter, and growth of 3.8% as compared to US$0.9 million for the first quarter of 2006. Net margin was 5.8% for the first quarter of 2007 as compared to 9.2% for the previous quarter and 5.5% for the first quarter of 2006.
