ChinaNet Q4 2009 Profit Up 6% YoY
PRNewswire-Asia, 3/31/10
Chinese online and TV advertising firm ChinaNet Online Holdings (NYSE Amex: CNET）has announced its fourth quarter and year-end 2009 financial results. In the fourth quarter, revenues increased 26.3% year-over-year to USD 10.4 mln, and net income was USD 0.79 mln, an increase of 5.9% YoY.
For the fourth quarter of 2009 Internet advertising comprised approximately 49% of total revenues, an increase of 28% year-over-year to USD 5.1 mln. Revenues generated by TV advertising during the fourth quarter of 2009 increased 59% year-over-year to approximately USD 5.0 mln or 48% of total revenues.
As of December 31, 2009, the number of active customers for the company's Internet advertising business was 600 and the number of customers being serviced by its TV advertising business was 300. Approximately 26% of customers were being serviced by both platforms.
For the full year, revenues increased 75.4% to USD 37.7 mln, and net income was USD 4.0 mln, an increase of approximately 43.5% from 2008.
In 2010, the company plans to extend its strategy of focusing on its rapidly growing Internet advertising sales business, which boasts gross margins of 75%, compared to 15% for its TV Advertising business segment. Management will focus resources and allocate capital to Internet advertising, which yield more predictable and recurring revenue. Consequently, management revised 2010 revenue guidance from USD 72.3 mln to USD 45 mln and reaffirmed net income guidance of USD 14.1 mln, which represents 19% and 67.9% year-over-year growth, respectively.
To see ChinaNet's full fiscal report, please click here.
Keywords: TV advertising guidance Internet profit revenue Q4 2009 fiscal report CNET ChinaNet online advertising
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