News Column

Pacific Online Limited 2014 Interim Earnings Results

September 9, 2014



By a News Reporter-Staff News Editor at China Weekly News -- Pacific Online Ltd. (HKSE: 543) ("Pacific Online," the "Company," or the "Group"), a leading internet content provider in China, announced its 2014 interim results for the six months ended June 30, 2014. The Group will host a conference call to discuss these results at 9:00AMHong Kong time on August 26, 2014. Dial-in details are provided at the bottom of this release.

2014 Interim Financial Highlights

-- Total revenues increased 18.4% year-over-year to RMB403.6 million

-- Net profit increased 5.9% year-over-year to RMB94.6 million "I am pleased to report an 18.4% year-over-year increase in revenues and a rise of 5.9% in net profit during the first half of 2014" commented Mr. Lam Wai Yan, Chairman and Chief Executive Officer of Pacific Online Limited. "Despite the economic uncertainty in China and increasingly intense market competition, we remain optimistic about the future of our business model which continues to generate both viewership and revenue growth. We believe that a greater focus on resource allocation will allow us to meet users' demand and allow us to seize new opportunities in China's vibrant e-commerce industry by leveraging our strength in different consumer verticals."

"PCauto continued to generate strong growth with revenue increasing 29.5%. The portal remains our most important revenue contributor accounting for 56.4% of total revenue during the first half of 2014. Growth was mainly driven by increased spending from both our automaker and dealership customers. Advertisements for car accessory products also showed signs of strong growth."

"Revenue from our IT-focused PConline portal declined 9.4%. PConline remains one of the leading verticals in the market and continued to see a stable increase in smart phone and tablet advertising spending. Revenue from software brands and e-commerce vendors also increased. The increases were offset however by a broader decline in demand for laptops and desktops in China."

"PClady's revenue increased 14.5% thanks to increasing demand for cosmetics and other fashion products, as well as a modest increase in skin-care products. We anticipate stronger growth during the second half of the year once strengthening of the portal's organizational structure and re-focusing on its product mix is complete."

"Revenue from other operations including PCgames, PCbaby, and PChouse increased 77.4% during the six months ended June 30, 2014. PCbaby, in particular, continued to attract increased online marketing spending from baby formula producers and diaper brands."

"We continue to develop strategic products that will contribute to the sustainable growth of the Group. These include our mobile websites and applications which facilitate traffic growth and closer relationships between our clients and users. Our three downloadable magazines maintained their top positions on Apple's iTunes recommendation list with more than 4 million downloads during the first half of this year. They are beginning to make meaningful revenue contribution to the Group.

"We recently made a strategic investment in a Silicon Valley-based venture capital fund which focuses primarily on the consumer and mobile technology sectors. The fund is expected to benefit us by offering opportunities to acquire knowledge of the latest technologies and business models from its portfolio companies."

"We remain optimistic in our outlook for the second half of 2014. While we have always taken a cautious approach, we are confident in our ability to maintain growth amidst challenges in the market."

2014 Interim Financial Results

Keywords for this news article include: Asia, China, Pacific Online Ltd.

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Source: China Weekly News


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