ChinaNet Online Holdings Q3 2012 Profit Up 20% YoY
ChinaNet Online Holdings IR, 11/20/12
Chinese B2B Internet and TV marketing firm ChinaNet Online Holdings (Nasdaq: CNET) has announced its financial results for the three months ended September 30, 2012. Q3 2012 revenues increased by USD 3.9 mln, or 60% YoY, to USD 10.3 mln from the prior year period.
Net income attributable to shareholders was USD 1.2 mln, up 20% YoY from USD 1.0 mln a year before.
Revenue from Internet advertisements for the three months ended September 30, 2012 increased by 46% YoY to USD 5.7 mln. The increase was primarily attributed to the additional revenues from the acquisition of 51% of the equity interests of Sou Yi Lian Mei (SOOE) in December 2011.
Sales of brand management and sales channel building services increased 198% YoY to USD 1.3 mln. This increase was attributed to an increase in the average advertising spending per customer from larger-sized clients.
TV advertising revenues increased 60% YoY to USD 3.2 mln.
On September 17, 2012, the company announced its purchase of the remaining 49% equity interest in Sou Yi Lian Mei Network for approximately USD 6.5 mln in cash. The acquisition broadens the company's client base to smaller startup businesses that are growing quickly. Founded in 2007, Sou Yi Lian Mei Network provides online advertising and marketing services to small businesses in China.
Liansuo.com, the company's operating unit for medium and large franchises, introduced a new cloud-based software system that allows sales channel partners to reach businesses more efficiently by converting all incoming calls to a toll free telephone number starting with the "400" prefix to the party they are trying to reach. ChinaNet expects the new cloud-based software system to drive additional spending for value-added services on Liansuo.com.
The company's board of directors approved a USD 1 mln share repurchase program on October 15, 2012 to be executed over the next twelve months at the company's discretion.
ChinaNet has reiterated its full year 2012 forecasts of revenues to be at least USD 42 mln and net income of at least USD 3.1 mln.
To view the complete report please see here.
Keywords: TV advertising Internet profit revenue online advertising ChinaNet Q3 2012 television fiscal report CNET
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