Shares of real estate Internet portal company Fang Holdings (SFUN 3.18, +0.52) trade about 19.6% higher this afternoon despite the company’s Q4 revenue miss. Perhaps aiding the advance, the company gave guidance for a decline in top line revenue but expects to be profitable for the full year 2017 period.
Specifically, SFUN reported in-line total revenues for Q4 of $174.7 million on a worse than expected loss per American Depository Share of $0.02.
Revenues fell 41.2% compared to last year mainly due to pressure in the company’s e-commerce and marketing services segments.
Revenue from e-commerce services was down about 48% to $89.9 million. The decline was primarily due to the decreased transaction volume impacted by the tightening regulations, as well as the strategic change to have scaled down on rental and home furnishing business. Marketing services revenues were down 42% to $48.0 million in Q4, primarily due to less demand from property developers for online advertising under the regulatory change.
Further, revenues from listing services were up 74.0% to $38.6 million in Q4, driven by the increased number of paying members and unit price. Revenue from Internet financial services was $0.6 million in Q4 as the policy impact on the new home financial services and the decreased secondary transaction volumes of the company's own brokerage services impacted results. Revenue from other value-added services was negative $2.4 million in Q4, primarily due to the re-classification accounting treatment of BaoAn's revenue.
Looking ahead, the company is undergoing adjustments to its transformations and plans to return to open-platform strategy. Before these changes are finalized, the company will see a decrease in its top line revenue but will expect to be profitable for the whole year 2017.