China quick review : financial results for V Media, VisionChina, Pactera, Perfect World, Qihoo, Charm

By November 21, 2012
Going reading

Out of home agencies financial results : V Media & VisionChina / Pactera Q32012 Financial Results : Europe in crisis iSoftStone Q32012 : Greater China is going well / Perfect World Q32012 Financial Results : no new games, no revenues / Qihoo 360: online advertising is up / Charm Communications Results: waiting for the Baidu effect

V Media Q12013 Financial Results: costly revenues

V Media Corp, an advertising media company, announces its financial results for the fiscal year 2013 first quarter ended September 30, 2012. Total revenue was $5.5 million, increased 20.1% compared with the first quarter fiscal year 2012. Net loss attributable to the Company was $1.4 million, (- 262.8% yoy). Revenue from outdoor billboard advertising platform which accounted for 36.1% of total revenue, increased  16.2% yoy. Outdoor billboards - Dalian, Shenyang, Tianjin, Beijing, Shanghai and New York - accounted for 36.1% of total revenue in Q12013. Net loss attributable to V Media Corp. totaled $1.4 million, a decrease of 262.8% as compared to net income $0.9 million for Q12012. Founded in September 2000, Dalian Vastitude Media Group, known as V Media Corp., operates one of the Dalian outdoor media network : bus shelters, taxi stops with displays and billboards. Launched in Dalian in 2009, V Media's proprietary LED multimedia display network, City Navigator, is one of the country's first web-based outdoor advertising networks.

VisionChina Media, Q32012: internet pure players are sulking

VisionChina, an out-of-home digital television advertising networks on mass transportation systems, today announced its unaudited financial results for the quarter ended September 30, 2012. VisionChina Media's total revenues were $33.2 million in the third quarter of 2012, (-34.0% yoy). Advertising service revenue, which accounted for 99.3% of total revenues in the third quarter of 2012, was $33.0 million (- 34.4%). Total broadcasting hours in the third quarter of 2012 were 40,963 hours, compared to 43,778 hours in Q32011. Average advertising revenue per broadcasting hour was $748, compared to $1,122 in the Q32011. The Company sold 299,510 advertising minutes in its network, compared to 465,756 advertising minutes one year ago. VisionChina sold an average of 7.31 advertising minutes per broadcasting hour in the third quarter of 2012, compared to 10.64 advertising minutes per broadcasting hour in Q32011. According to the company, several factors led to the year-over-year decrease in advertising service revenue: declining revenue contribution from the internet-based businesses sector, slower-than-expected recovery in advertising spending by small- and medium-sized customers in reaction to rate-card increases across the Company's network in the Q42011.

Pactera Q32012 Financial Results : Europe in crisis

Pactera Technology International, a consulting and technology services provider headquartered in Beijing, today reported its unaudited financial results for the third quarter ended September 30, 2012. Net revenues were $79.6 million, up 35.2% yoy. Non-GAAP operating income was $11.2 million, up 41.9% from Q32011. Greater China continued its strong growth of 77.2% year-over-year for HiSoft. The United States and Japan also continued show a year-over-year net revenue growth of 21.8% and 41.6%, respectively. Asia South recorded a 68.8% increase in revenue year-over-year primarily due to an acquisition in Australia in the third quarter 2012. Growth from Europe was negatively impacted by adverse macro-economic conditions resulting in a 7.6% year-over-year decrease. In addition, Pactera included the unaudited financial results for the third quarter ended September 30,2012 of VanceInfo Technologies which was combined with HiSoft Technology International to form Pactera on November 9, 2012. Net revenues for the third quarter of 2012 increased to $96.2 million, (+ 36.9% yoy). Non-GAAP operating income was $8.5 million, up 54.5%. Net revenues from Greater China were $49.3 million or 51.2% of total net revenues in Q32012, followed by 32.5% from the United States, 9.0% from Europe and 4.4% from Japan. Total employees for HiSoft as of September 30, 2012 was 8,652, including 7,636 billable professionals. For VanceInfo, total employees as of September 30, 2012 was 15,302, including 13,801 billable professionals.

iSoftStone Q32012 : Greater China is going well

iSoftStone, an IT services provider, today reported its unaudited financial and operating results for the third quarter ended September 30, 2012. Net revenues increased to $98.6 million (+ 33.7% from Q32011). Net income increased 31.9% to $7.5 million from $5.7 million in Q32011. In the third quarter 2012, Greater China continued to outperform the growth of net revenues while the Global, especially Japan and Europe, underperformed the growth due to unfavorable macro-economic conditions. Our net revenues from Greater China clients increased $20.6 million or 47.1% to $64.2 million from $43.6 million in the third quarter 2011. Net revenues from U.S. clients increased $2.8 million (+ 15.0% yoy). Net revenues from European clients increased $1.8 million or 33.1% to $7.2 million from $5.4 million in Q32011. Net revenues from Japanese clients decreased $0.4 million. Total number of employees increased 18.6% to 13,937 as of September 30, 2012 from 11,750 as of September 30, 2011.

Perfect World Q32012 Financial Results : no new games, no revenues

Perfect World, an online game developer and operator based in China, today announced its unaudited financial results for the third quarter ended September 30, 2012. Total revenues were RMB695.8 million (USD110.7 million), as compared to RMB708.9 million in 3Q11. Net income attributable to the Company's shareholders was RMB86.2 million (USD13.7 million), as compared to RMB143.6 million in 3Q11. Online game operation revenues, which include both domestic and overseas online game operations, were RMB608.2 million in 3Q12, as compared to RMB643.2 million in 3Q11. Licensing revenues were RMB39.0 million (USD6.2 million) in 3Q12, as compared to RMB46.9 million in 2Q12 and RMB55.8 million in 3Q11. The aggregate average concurrent users for games under operation in mainland China was approximately 601,000 in 3Q12, as compared to 828,000 in 3Q11. The decrease from 2Q12 was mainly due to such stringent anti-cheating efforts, as well as adverse seasonality factors affecting user traffic during the third quarter.

Qihoo 360 Reports Third Quarter 2012 Unaudited Financial Results

Qihoo 360 Technology, an Internet company in China, today reported its unaudited financial results for the third quarter ended September 30, 2012. Revenues were $84.0 million, a 77% increase from $47.5 million Q32011.Net income attributable to Qihoo 360 was $12.9 million, (+18%). Online advertising revenues were $58.4 million, up 66.5% from the same period last year and 14.8% from the prior quarter. The year-over-year growth was primarily driven by products, such as the 360 browsers and Personalized Start-up Pages. User penetration of Qihoo 360's browsers was a record 65% in September 2012, compared to 57% in September 2011. Monthly active users of Qihoo 360's browsers reached a record 303 million in September 2012, compared to 235 million in September 2011[3]. Average daily unique visitors to the 360 Personal Start-up Page and its sub-pages were 89 million in the third quarter of 2012, compared to 55 million in the Q32011.Average daily clicks on Qihoo 360's Personal Start-up Page and its sub-pages were approximately 451 million in the third quarter of 2012, compared to 185 million in the third quarter of 2011. Internet value-added service revenues, which are mainly derived from web game operations, were $25.5 million, up 110.8% from the same period last year and 17.8% from the prior quarter. The year-over-year growth was driven by growth of the Company's paying user base. Paying users of Qihoo 360's game platform were approximately 182,000 in September 2012, compared to 148,000 in June 2012. Total monthly active users of Qihoo 360's products and services reached 442 million in September 2012, compared to 370 million in September 2011. User penetration of Qihoo 360's products was 95% in September 2012, compared to 89% in 2011. Total smartphone users of Qihoo 360's mobile security products reached approximately 149 million in September 2012. The number of smartphone users of the mobile security product - 360 Mobile Safe - reached 149 million. Finally, during the third quarter was launched 360 search services. Qihoo recently began to publicly test its search engine monetization system.

Charm Communications Q32012 Results: waiting for the Baidu effect

Charm Communications Inc., an advertising agency in China, today announced its unaudited financial results for the third quarter ended September 30, 2012. In October 2012, Charm Click was chosen as Baidu's official SEM agency for its European business for the period of September 1, 2012 through December 31, 2013. As Baidu's European SEM agency, Charm Click will promote Baidu's technology services across 42 countries. Turnover decreased 1.7% year over year to $216.5 million. Revenues for Charm's advertising agency business grew 47.3% year over year to $13.6 million in Q32012. Revenues for Charm's media investment management business declined 42.8% year over year to $34.1 million. Net income declined 99.3% yoy to $0.1 million. The revenue extraction rate, which is defined as revenue divided by turnover, was 7.5% for the agency business, compared to 5.8% for the third quarter of 2011. According to Charm, the increase in the revenue extraction rate was due to Olympics-related branding placements and to increased advertising spending on non-CCTV media platforms, the internet and satellite channels.

Legal mentions © L’Atelier BNP Paribas