Marbridge Daily

<- December 13, 2011 ->

China Finance Online Q3 2011 Loss Reaches USD 3.5 Mln

PR Newswire Asia, 12/13/11

Chinese online financial information provider China Finance Online (Nasdaq: JRJC) today announced its unaudited financial results for the third quarter and nine months ended September 30, 2011. Net revenues for the third quarter of 2011 were USD 13.5 mln, compared to USD 14.4 mln for the third quarter of 2010.

Net loss attributable to China Finance Online for the third quarter of 2011 was USD 3.5 mln compared with income of USD 1.4 mln in the third quarter 2010.

Revenues from subscription fees paid by individual customers decreased 9.3% YoY reflecting the decreased demand for financial information products amid a plunging stock market in China, deteriorating global macroeconomics, as well as the continuing impact on sales due to the new Provisional Regulations on Securities Investment Advisory Business. Advertising revenues decreased 2.4% YoY to USD 1.8 mln. Institutional subscription revenues increased 44.8% YoY to USD 0.8 mln. Revenues from brokerage-related services decreased 19.0% YoY to USD 0.7 mln resulting from severely dampened investor confidence as the Hong Kong Hang Seng Index plunged to a two-year low during the third quarter of 2011.

The main sources of the company's net revenues were from subscription fees from individual customers, subscription fees from institutional customers, advertising revenues and revenues from brokerage-related services, which contributed 75%, 6%, 13% and 5%, respectively, to total revenues compared to 78%, 4%, 12%, and 6%, respectively, for the comparable period in 2010.

As of September 30, 2011, the number of active paid subscribers was approximately 117,000.

Due to a continuously sluggish business and stock market environment, which has persisted since the end of the third quarter 2011, China Finance Online has lowered its net revenue guidance from USD 55 mln to USD 52 mln for fiscal year 2011. Non-GAAP net income, which is defined as net income excluding non-cash share-based compensation and non-cash impairment of investment, goodwill and intangible assets for the 2011 year is still anticipated to be a loss of USD 1 mln.

To view China Finance Online's full earnings report, please click here.

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