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Youku Narrows Q2 2011 Net Loss to USD 4.3 Mln

PR Newswire Asia, 8/09/11

Chinese online video site Youku (NYSE: YOKU) today announced its unaudited financial results for the second quarter ended June 30, 2011. Net revenues were RMB 197.8 mln (USD 30.6 mln), representing a 178% increase from the corresponding period in 2010 and exceeding the high end of the revenue guidance previously announced by Youku by 18%. The significant increase in net revenues was mainly due to the strong performance of brand advertising revenues, which amounted to RMB 190.0 mln (USD 29.4 mln) in the second quarter of 2011, representing a 181% increase from the corresponding period in 2010. This growth was primarily attributable to the increased average revenue per advertiser and increased number of advertisers.

Net loss was RMB 28.1 mln (USD 4.3 mln) in the second quarter of 2011, compared to a net loss of RMB 62.64 mln in Q2 2010.

Bandwidth costs as a component of cost of revenues were RMB 66.3 mln (USD 10.3 mln) in the second quarter of 2011, representing 33% of net revenues, down from 65% in the corresponding period in 2010.

Content costs as a component of cost of revenues were RMB 49.5 mln (USD 7.7 mln) in the second quarter of 2011, representing 25% of net revenues in the same period, compared to 26% in the corresponding period in 2010. If Youku had continued using the accounting estimates adopted in the first quarter of 2011 for amortizing content costs, RMB 40.2 mln (USD 6.2 mln), or 20% of net revenues, would have been recorded in the second quarter of 2011.

For the third quarter of 2011, Youku expects year-on-year growth in net revenues of 110% to 120%.

To view Youku's full earnings report, please click here.

Keywords: online advertising video advertising bandwidth content guidance Internet loss revenue online video Youku YOKU Q2 2011 profit fiscal report

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