Ku6 Posts Q3 2012 Loss of USD 3.3 Mln
Ku6, 12/07/12
Shanda Interactive's online video subsidiary Ku6 (Nasdaq: KUTV) has announced its financial results for the three months ended September 30, 2012. Q3 2012 revenues were USD 3.06 mln (RMB 19.21 mln), up 0.9% QoQ from USD 3.03 mln in the second quarter of 2012 and down 27.7% YoY from USD 4.23 mln in the third quarter of 2011.
Net loss for the period was USD 3.25 mln, as compared to a net loss of USD 12.98 mln in Q3 2011 and a net loss of USD 1.47 mln in Q2 2012.
In the second quarter of 2011, the Company started to generate advertising revenues primarily from performance advertising services using a system called Application Advertisement (AA). The performance advertising revenue was realized through an affiliated advertising agent under common control of online media and game operator Shanda Interactive, the Company's majority shareholder. The Company generated 94.6% of total revenues in the third quarter of 2012 through this affiliated advertising agent, as compared to 94.8% of total revenues in the second quarter of 2012.
On July 12 2012, the Company's shareholders approved, at the Annual General Meeting, a repurchase (and retirement thereafter) of certain of the Company's outstanding shares. This repurchase was settled with cash on July 30, 2012. In this transaction, the Company repurchased and immediately retired in the aggregate 269,409,276 ordinary shares formerly held by Kevin Li (the original founder and former CEO), Hao Zhizhong (Former Senior VP), Zeng Xingye (Former VP of Sales) and Kumella Holdings Limited (an investment entity controlled by Li), at a price of USD 0.0291 per share, representing a premium to the Company's current per share price (in total, such repurchase amounting to approximately USD 7.84 mln). The Company also repurchased and immediately retired 79,717 ADSs (each ADS representing 100 ordinary shares) held by Li at a price of USD 2.91 per ADS (in total, approximately USD 0.23 mln), which represented a premium to the then-current share price.
To view the complete report please see here.
Keywords: Hao Zhizhong Internet loss revenue online video Ku6 KUTV Zeng Xingye Kumella Q3 2012 fiscal report Kevin Li video advertising
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