Chinese online media company Sina Corp. (SINA), Thursday reported a loss for the first quarter that narrowed from a year ago, driven largely by higher revenues and improved margins. Adjusted earnings for the quarter topped Wall Street estimates, sending Sina shares up by about five percent in after-hours trade.
Shanghai, China-based Sina's loss for the quarter narrowed to $13.2 million or $0.20 per share from $13.7 million or $0.21 per share last year. Adjusted earnings were $0.02 per share. Analysts polled by Thomson Reuters expected a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.
Sina said revenues for the quarter grew 19 percent to $126.0 million from $106.2 million last year. Adjusted revenues rose to $121.3 million from $101.5 million last year. Analysts had a consensus revenue estimate of $117.54 million for the quarter.
Advertising revenues climbed 20 percent to $94.3 million, while non-advertising revenues rose 14 percent.
Gross margins for the quarter improved to 51 percent from 46 percent last year.
Chairman and Chief Executive Charles Chao indicated the company as making good progress in transitioning from a PC-centric to a mobile-centric Internet company with new product launches and improved monetization
Looking forward to the second quarter, the company expects adjusted revenues of $143 million to $147 million. Analysts currently expect revenues of $142.66 million for the quarter.
SINA closed Thursday's regular trade at $8.81, down $0.69 or 1.16%, on the Nasdaq. The stock, however, gained $2.49 or 4.23% in the after-hours trade.
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