Investors worry about advertising market

Written by admin on April 14th, 2012

Article by Lucy

On 17 November morning news, in the third quarter earnings released today, and the media of earnings in communication meeting, executives to release earnings after the dish and recent stock plunged about the poor, for investors to explain next year China advertising market there are concerns. In addition top revealed that currently charge of less than 1% contribution business income.

According to the the third quarter earnings, its net income of $ 42.1 million, a 129% growth from last year, a net loss of 47.5 million yuan ($ 7.4 million), 11% lower than the same period last year. Due to the third quarter earnings than Wall Street expected, dish plunged 14% after, by Beijing time 9:00, reported $ 17.60, down 14.36%.

CFO LiuDeLe expressed, stock poor performance on the reason is half bad, a lot of company stock in the fall, on the other hand, is that investors for next year China advertising market and China have worried about the economy. “But we believe that China’s economic growth and a large space, western investors now has not been fully understood.”

this quarter compared to the $ 7.4 million loss is reduced by 11% and earnings on when, LiuDeLe represents the future strategic focus or an overwhelming share of market, the next four quarters or major investment, profits and is not main intention. CEO gu yongqiang (the Po), says that flow is 22% growth last quarter-24%, including 10-15% from social networks, 20% from the search.

Not long ago potatoes and happiness visual (micro Po) nets reach depth strategic alliances, it was also the outside world is seen as the siege of move, CEO gu yongqiang, don’t think so, he said counterparts is to strengthen our own strength, and revealed that the exchange of potatoes and this drama cooperation still has some.

Gu yongqiang also said, has made 2012 TV shows, movies, the hot spot of the reserves next year, the advertising prices will have to rise.

At present the optimal income 95% from advertising cool, in charge last year began to explore business, but so far no too big effect. Gu yongqiang says, is affected by the status of copyright, this part of the income is less than 1%, but with copyright the improvement of the environment and the upgrading of the industrial consumption and in a few years this club have big development.

Recently on the telecommunications unicom broadband monopoly of the accused constantly, bandwidth costs as one of the biggest video website spending, also pay close attention to this development. According to gu yongqiang revealed that video enterprise for bandwidth expenses, is the United States about four times. But for real interconnected can bring many save, gu yongqiang, said “it is difficult to calculate out”.

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