SINA Corp (NASDAQ:SINA), a leading online media company serving China and the global Chinese communities, today announced its unaudited financial results for the first quarter ended March 31, 2016.

First Quarter 2016 Highlights

  • Net revenues increased 8% year over year to $198.7 million. Non-GAAP net revenues increased 8% year over year to $196.1 million.
  • Advertising revenues grew 8% year over year to $163.0 million. Non-advertising revenues were $35.7 million. Non-GAAP non-advertising revenues were $33.1 million.
  • Net income attributable to SINA was $15.3 million, or $0.22 diluted net income per share attributable toSINA. Non-GAAP net loss attributable to SINA was $2.8 million, or $0.04 non-GAAP diluted net loss per share attributable to SINA.

“We are delighted to have a good start of 2016, with Weibo continuing to show strong momentum on both operational and financial results.” said Charles Chao, Chairman and CEO of SINA. “Weibo’s user community and engagements kept robust growth, mainly thanks to the optimization of information feed and strong consumption of video content on the platform. On the mobile front, Weibo strengthened the leading position with over 91% of the average daily active users coming from mobile devices in March 2016. On the monetization front, advertising revenues from key accounts and small and medium enterprises (SME) customers have become the key driver ofWeibo revenue growth.” said Mr. Chao.

“On the portal side, our performance was largely in line with our expectation, taking seasonality factor into account. We are glad to see the positive trajectory in mobile monetization of portal, with nearly 44% of portal ad spending generated from mobile devices in this quarter.” Mr. Chao added.

First Quarter 2016 Financial Results

For the first quarter of 2016, SINA reported net revenues of $198.7 million, compared to $184.6 million for the same period last year. Non-GAAP net revenues for the first quarter of 2016 totaled $196.1 million, compared to$182.0 million for the same period last year.

Online advertising revenues for the first quarter of 2016 were $163.0 million, compared to $150.4 million for the same period last year. The year-over-year growth in online advertising revenues resulted from an increase of$20.1 million in Weibo advertising and marketing revenues, partially offset by a decline of $7.5 million in portal advertising revenues. Weibo’s advertising revenue from Alibaba was $11.1 million, compared to $34.5 million for the same period last year, which was under a strategic collaboration agreement that expired in January 2016.

Non-advertising revenues for the first quarter of 2016 were $35.7 million. Non-GAAP non-advertising revenues for the first quarter of 2016 were $33.1 million, compared to $31.6 million for the same period last year.

Gross margin for the first quarter of 2016 was 59%, compared to 58% for the same period last year. Advertising gross margin for the first quarter of 2016 was 58%, compared to 57% for the same period last year. Non-advertising gross margin for the first quarter of 2016 was 64%, compared to 61% for the same period last year. The increase in non-advertising margin was primarily due to the decrease in revenues contributed by lower margin businesses, such as MVAS.

Operating expenses for the first quarter of 2016 totaled $126.3 million, compared to $132.5 million for the same period last year. Non-GAAP operating expenses for the first quarter of 2016 totaled $111.1 million, compared to$119.6 million for the same period last year, primarily due to the decrease in sales and marketing expenditures.

Loss from operations for the first quarter of 2016 was $8.5 million, compared to a loss of $25.2 million for the same period last year. Non-GAAP income from operations for the first quarter of 2016 was $5.6 million, compared to a non-GAAP loss from operations of $13.6 million for the same period last year as a result of operational leverage achieved by Weibo.

Non-operating income for the first quarter of 2016 was $24.3 million, compared to a non-operating income of $8.4 million for the same period last year. Non-operating income for the first quarter of 2016 mainly included 1) a one-off deconsolidation gain amounted $14.8 million as a result of disposing partial ownership in non-core business, which was measured by the amount of fair value of the interests retained in the former subsidiaries over the carrying amount of the deconsolidated assets/liabilities and non-controlling interests recognized at the date of losing control, and such gain was excluded under non-GAAP measure; 2) a $15.3 million net gain on disposing of certain investments, which is excluded under non-GAAP measure; 3) a $10.6 million loss pick-up from equity-method investments, which are accounted for under the equity-method and reported one quarter in arrears, mainly resulted from loss pick-up from the Company’s investment in E-House. Non-operating income for the first quarter of 2015 mainly included $3.7 million earnings picked up from equity-method investments.

Net income attributable to SINA for the first quarter of 2016 was $15.3 million, compared to a net loss of $10.3 million for the same period last year. Diluted net income per share attributable to SINA for the first quarter of 2016 was $0.22, compared to a net loss per share of $0.18 for the same period last year. Non-GAAP net loss attributable to SINA for the first quarter of 2016 was $2.8 million, compared to a net income of $3.0 million for the same period last year. Non-GAAP net loss in the first quarter of 2016 was mainly resulting from equity loss generated by E-House. Non-GAAP diluted net loss per share attributable to SINA for the first quarter of 2016 was$0.04, compared to a net income per share of $0.04 for the same period last year.

As of March 31, 2016, SINA’s cash, cash equivalents and short-term investments totaled $2.2 billion, at similar level as of December 31, 2015. For the first quarter of 2016, net cash provided by operating activities was $18.2 million, capital expenditures totaled $8.0 million, and depreciation and amortization expenses amounted to $6.6 million. (Original Source)

Shares of Sina Corp. opened today at $49.83. SINA has a 1-year high of $61.25 and a 1-year low of $32.61. The stock’s 50-day moving average is $49.32 and its 200-day moving average is $47.53.

On the ratings front, Brean Murray Carret analyst Fawne Jiang reiterated a Buy rating on SINA, in a report issued on May 4. According to TipRanks.com, Jiang has a yearly average return of 4.9%, a 44.8% success rate, and is ranked #652 out of 3844 analysts.

SINA Corp. engages in the provision of online and mobile media services. It operates through the following segments: Advertising, Mobile Value-Added Services (MVAS), and Other Non-Advertising Information. Its services include MVAS, online video, music streaming, online games, photo sharing, blog, email, classified listings, fee-based services, ecommerce and enterprise services. The company was founded in March 1999 and is headquartered in Beijing, China.