Marbridge Daily

Sohu 2009 Net Income Up 11% YoY

Sohu, 2/01/10

Chinese online media, communication, search, online gaming and wireless value-added services provider Sohu (Nasdaq: SOHU) has released its earnings report for the fourth quarter ended December 31, 2009, with net revenues reaching USD 135.8 mln, up 12% YoY and down 1% QoQ. Full year net revenues reached USD 515.2 mln, up 20% YoY.

Before deducting the share of net income pertaining to the non-controlling interest in Chinese online gaming subsidiary Changyou (Nasdaq: CYOU), net income for the quarter came to USD 42.4 mln, down 25% YoY and 10% QoQ. After deducting the share of net income pertaining to Changyou, net income for the fourth quarter of 2009 was USD 29.4 mln.

Net income for full-year 2009 increased 11% to USD 176.4 mln before deducting the share of net income pertaining to Changyou. After the deduction, net income was USD 139.3 mln, down 12% YoY.

Of total revenues for Q4 2009, brand advertising revenues reached USD 45.9 mln, up 2% YoY and down 5% QoQ; online game revenues totaled USD 70.7 mln, up 21% YoY and 3% QoQ; and wireless value-added services revenues totaled 15.7 mln, up 6% YoY and down 7% QoQ.

Total revenues for the full year broke down as follows: brand advertising revenues reached USD 177.1 mln, up 5% YoY; online game revenues were USD 259.8 mln, up 33% YoY; overseas licensing revenues reached USD 7.8 mln, up 8% YoY; WVAS revenues increased 29% YoY to reach USD 60.8 mln.

Sohu estimates total revenues for the first quarter of 2010 to be between USD 123 mln and USD 128 mln, with advertising revenues of USD 40 mln to USD 42 mln.

Sohu estimates brand advertising revenues for the first quarter of 2010 to be between USD 38 mln and USD 40 mln.

Sohu estimates online game revenues for the first quarter of 2010 to be between USD 70 mln and USD 73 mln.

Sohu estimates non-GAAP net income for the first quarter of 2010, before deducting the share of non-GAAP net income pertaining to the non-controlling interest in Changyou, to be between USD 45 mln to USD 47.5 mln. After deducting the share of non-GAAP net income pertaining to the non-controlling interest in Changyou, Sohu estimates non-GAAP net income for the first quarter of 2010 to be between USD 31 mln to USD 33.

Keywords: guidance online advertising Changyou online gaming Internet wireless Q4 2009 WVAS CYOU Sohu profit revenue fiscal report