SINA Corporation (NASDAQ:SINA) Q2 2019 Earnings Conference Call Transcript

Aug 19, 2019 • 08:10 am ET

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SINA Corporation (NASDAQ:SINA) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to SINA's Earnings Call for Second Quarter 2019. [Operator Instructions] I must advise you that this conference is being recorded today, Monday 19th of August, 2019. Now, I'd like to hand the conference over to your speaker host 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 second quarter 2019. Joining us today are our Chairman and CEO, Charles Chao; and our CFO, Bonnie Zhang. This call is also being broadcast on Internet and is available through our IR website at ir.sina.com. Now, let me read you the safe harbor statement in connection with today's conference call. Our discussion today will contain forward-looking statements, which involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. SINA assumes no obligation to update the forward-looking statement in this call and elsewhere. For detailed discussion of these risks and uncertainties, please refer to our latest Annual Report on Form 20-F and other filings with the SEC.

In addition, I would like to remind you that our discussion today include non-GAAP measures, which mainly exclude stock-based compensation and certain other items. We use non-GAAP measures to gain a better understanding of SINA's comparative operating results and future prospects. Please refer to our earnings release for more detailed information on reconciliation of GAAP to non-GAAP measures. During the call, we may discuss non-GAAP measures for Weibo, which apply the same methodologies we use to calculate non-GAAP measures at the SINA group level.

After management remarks, we will open the lines for 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 the financial highlights for the second quarter 2019. Before the detailed financial review, I would like to remind you that, my prepared remarks would focus on non-GAAP results, and all the comparisons are on a year-over-year basis unless otherwise noted.

Let's start with an overview of the second quarter 2019 result. SINA's net revenues for the second quarter were $530.4 million, a decrease of 1% or increase of 5% on constant currency basis. Operating income was $152.8 million, a decrease of 4% or an increase of 2% on a constant currency basis.

Net income attributable to SINA was $54 million and the diluted EPS was $0.76. Now, let's turn to key financial items. SINA's online advertising revenue for the second quarter were $433.6 million, a decrease of 5% or an increase of 1% on a constant currency basis, primarily due to a decline in portal advertising revenue and a negative currency translation impact. Let me start from Weibo's business. Weibo's user growth re-accelerated meaningfully compared with Q1 with MAU adding approximately 21 million user quarter-over-quarter reached 486 million in June and the average DAU adding approximately 80