SINA Reports Second Quarter 2005 Financial Results
The Company Reports Net Revenues of $46.1 Million
SHANGHAI, China, August 3 /Xinhua-PRNewswire/ SINA Corporation (Nasdaq: SINA), a leading online
media company and value-added information service provider for China and for global Chinese
communities, today announced its financial results for the second quarter ended June 30, 2005:
* Net revenues for the quarter declined 6% year-over-year to $46.1 million, meeting the
Companys guidance of between $44.0 million and $48.0 million.
* Advertising revenues for the quarter grew 31% year-over-year to $20.4 million, accounting
for 44% of total revenues.
* Non-advertising revenues for the quarter declined 24% year-over-year to $25.8 million,
accounting for 56% of total revenues.
* US GAAP net income for the quarter decreased 45% year-over-year to $10.0 million, or $0.17
diluted net income per share. US GAAP net income for the quarter included an impairment
charge of $1.3 million on the Companys investment in Tidetime Sun (previously called Sun
* Non-GAAP net income for the quarter decreased 35% year-over-year to $12.5 million, or
$0.21 diluted net income per share, meeting the Companys guidance of between $11.0 million
and $13.0 million.
Despite a tough regulatory environment for wireless, we achieved the Companys guidance on both
net revenues and net income, said Wang Yan, CEO of SINA. We made great strides in our advertising
business, which increased 22% from the prior quarter, and put increasing distance between us and
our competitors. On the wireless front, we believe that the second quarter was a turning point for
us and we may see modest growth for this sector in the near future.
For the quarter ended June 30, 2005, SINA reported net revenues of $46.1 million, a decrease of 6%
from $49.2 million reported in the same period of 2004 and an increase of 1% from $45.8 million
reported in the previous quarter, within the range of the Companys guidance of between $44.0
million and $48.0 million.
Advertising revenues totaled $20.4 million for the quarter, representing a 31% increase from $15.5
million reported in the same period in 2004 and a 22% increase from $16.6 million reported in the
previous quarter. The sequential increase in advertising revenues was mainly due to the seasonality
of the advertising business and increased customer spending.