PR Newswire Asia, 6/02/10
Chinese wireless value-added service provider Hurray (Nasdaq: HRAY) has announced its preliminary unaudited financial results for the quarter ended March 31, 2010, with total revenues down 42% YoY and up 10.6% QoQ to USD 6.8 mln.
Net loss attributable to Hurray in the first quarter was USD 10.4 mln.
Advertising revenues from the recently acquired Chinese video site Ku6 reached USD 1.2 mln. Ku6's results began to be consolidated into Hurray's financial results beginning on February 1, 2010, so only revenues for the months of February and March 2010 are included.
Recorded music revenues in the first quarter ended March 31, 2010, which represent revenues of Hurray's controlled music companies Freeland Music, Huayi Brothers Music (all Hurray's equity interest in Huayi Brothers Music was subsequently sold in mid-May 2010), Hurray Secular Bird, and Seed Music, were USD 3.9 mln and were flat compared to Q1 2009 and Q4 2009.
Total WVAS revenues fell 77.9% YoY and 24.4% QoQ to USD 1.7 mln in Q1 2010. The continued decrease in WVAS business was mainly a result of possibly temporary regulations, including suspending billing in certain major product categories, which were enacted by major telecom operators in the fourth quarter of 2009 and still remained in place as of March 31, 2010.
On June 1, 2010, Hurray! and Shanda (Nasdaq: SNDA) announced that the two companies have entered into a definitive agreement under which Hurray will acquire an online audio business of Shanda in exchange for 415.38 mln newly issued ordinary shares of Hurray, and concurrently, Shanda will acquire Hurray's recorded music and wireless value-added services businesses in exchange for an aggregate of USD 36.94 mln in cash, subject to adjustment based on the May 31, 2010 cash balances of the businesses being transferred to Shanda. The net consideration to be received from Shanda for the businesses excluding payment for the cash balances in the businesses being transferred is estimated to be approximately USD 11 mln.
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