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Last Update: 16-Nov-12 08:28 ET
Sina shares fall 7% following disappointing earnings
Sina (SINA $49.01 -4.09) reported third quarter earnings of $0.17 per share, $0.06 better than the Capital IQ consensus of $0.11, while revenues rose 17.0% year/year to $152.4 million versus the $149.09 million consensus (non-GAAP +18% to $147.7 mln). The company issued guidance for the fourth quarter with Q4 non-GAAP revs of $132-136 mln, Non-GAAP net revenues and non-GAAP non-advertising revenues exclude the recognition of $4.7 million in deferred license revenue related to SINA's equity investment in CRIC/E-House; may not compare to the GAAP $155.37 mln Capital IQ Consensus Estimate, but does appear to be below expectations. Co sees advertising revenues to be between $110 million and $112 million, representing a year-over-year increase between 6% and 8%, and non-GAAP non-advertising revenues to be between $22 million and $24 million, representing a year-over-year decrease between 4% and 12%. The Company's estimate of non-GAAP non-advertising revenues assumes that MVAS revenues may decline between $8 million to $9 million year over year due to new operator policies to reduce customer complaints. "We are pleased with the initial results of Weibo monetization, as advertising revenues doubled from the previous quarter and we started revenue sharing with application developers. We believe these new initiatives will help us reduce the impact of China's weak macro-economic conditions. As we look forward into 2013, we are preparing to launch Weibo advertising solutions geared toward the small and medium-sized enterprise market, which will open up new opportunities for SINA advertising."
