Sina announced its third quarter financial results today, highlighting that the microblog owner has managed to attract more than 400 million registered accounts with a net revenue increase of 17% Y-o-Y to $152.4 million. Owing in part to the success of their campaign at the London Olympics, Sina’s CEO Charles Chao had the following to say about the announcement:
“We are pleased with the initial results of Weibo monetization, as advertising revenues doubled from the previous quarter and we started revenue sharing with application developers. We believe these new initiatives will help us reduce the impact of China’s weak macro-economic conditions. As we look forward into 2013, we are preparing to launch Weibo advertising solutions geared toward the small and medium-sized enterprise market, which will open up new opportunities for SINA advertising.”
Many have criticized Sina in the past for having an unclear profit model, and it appears that the company is still making an effort to address its monetization woes. Net income was $9.9 million for the quarter and $11.7 non-GAAP.
While this may change in the long term as Sina’s user-base grows and the prospects of advertising become more relevant, it will be troublesome for Sina to gain direct revenue from services, as Chinese are normally unwilling to spend money in this way.
According to reporting from The Next Web, Sina is having trouble finding its fit in an increasingly mobile industry. They plan to launch a mobile payments system this quarter as well as a Twitter-like promoted feed.
Source: The Next Web