ChinaNet Q1 2011 Profit Down 26% YoY
ChinaNet, 5/17/11
Chinese online and TV advertising firm ChinaNet Online Holdings (Nasdaq: CNET) has announced its financial results for the first quarter of 2011. Q1 2011 revenue decreased 31% YoY to USD 7.0 mln from USD 10.2 mln in the first quarter of 2010.
Net income attributable to shareholders was USD 2.64 mln, a decrease of 26.1% YoY from USD 3.57 mln in Q1 2010.
Revenues from the internet advertising and marketing business segment increased 30% YoY to USD 6.1 mln, while TV advertisement revenues fell 87% YoY to USD 0.7 mln. Successful brand building efforts for online franchising site 28.com drove further growth in core advertising and internet based marketing tools, while the Company experienced initial contributions from its complementary brand management and sales channel expansion services.
TV production and advertising service revenues decreased as the Company reduced the total minutes of advertising time purchased in order to free up working capital. TV advertisement revenues only accounted for 10% of revenues in the first three months of 2011, down from 53% in the prior year. Revenues from this segment will continue to fluctuate according to customer demand.
The company expects full year revenues to be between USD 50 and USD 54 mln for 2011 and net income of USD 17.5 to USD 18.2 mln, which would represent 20%-30% and 19%-24% growth in revenues and net income, respectively.
To view the complete report please see here.
Keywords: 28.com TV advertising Internet profit revenue CNET ChinaNet Q1 2011 television online advertising fiscal report online franchising
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