SINA Corporation (NASDAQ:SINA) Q3 2018 Earnings Conference Call Transcript

Nov 28, 2018 • 07:10 am ET

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SINA Corporation (NASDAQ:SINA) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the SINA's earnings conference call for the Third Quarter of 2018 Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advice you that this conference is being recorded today, Wednesday, November 28, 2018.

I would now like to hand the conference over to your first speaker today, Ms. Sandra Zhang. Thank you, please go ahead.

Executive
Sandra Zhang

Thanks, operator, and hello, everyone. Welcome to SINA's earnings conference call for the third quarter of 2018. Joining us today are our Chairman and CEO, Charles Chao; and our CFO, Bonnie Zhang. This call is also being broadcast on the Internet and is available through our IR website, at ir.sina.com.

(Forward-Looking Cautionary Statements)

After management remark, we'll open the lines for a brief Q&A session. With that, I would like to turn the call over to our CFO, Bonnie.

Executive
Bonnie Yi Zhang

Thank you, Sandra. And thank you all for joining our conference call today. Let me walk you through the operational and financial highlights for the third quarter 2018. Before the detailed financial review, I would like to remind you that unless otherwise noted, my prepared remarks would have focused on non-GAAP results and all the comparisons are on a year-over-year basis. In addition, for easy comparison I may also indicate our revenue or expenses figures under the old accounting standard, which excludes barter transaction, adds back value-added tax to the related current period financials.

Let's start with an overview of our third quarter results. SINA's net revenue for the third quarter of 2018 was $554.6 million, up 26% or 29% on a constant currency basis. SINA's operating income grew 16% to $168.1 million. Net income attributable to SINA was $67.7 million and the diluted EPS was $0.93. SINA's online advertising revenue for the third quarter of 2018 grew 33% to $483.8 million, primarily driven by an increase of $132.5 million or 48% of growth in Weibo advertising and marketing revenues.

Let me provide some color on Weibo's platform growth. As a platform with mobile MAU, over half of the mobile Internet population in China, we will continue to deliver strong user growth and engagement, further solidifying the platform position as the leading social media in China. We attributed the robust growth of the platform to teams efforts in product revamp, channel investment and the content ecosystem cultivation, which further strengthened the social network effect and broadened our strategic mode to serve public and social interactions among Chinese and the global Chinese communities.

On top of user growth, Weibo demonstrated and reinforced the unique value proposition for advertisers through a full spectrum of social products -- commercial products, serving advertisers' comprehensive social marketing demands. In the third quarter, the increase in customer number and ARPA continued to be the drivers of ad revenue growth. From an industry perspective, we'll continue to see vitality in Weibo's top key accounts industry with FMCG and 3C