SINA Corporation (SINA - Free Report) reported fourth-quarter 2018 non-GAAP earnings of 80 cents per share, missing the Zacks Consensus Estimate by 23 cents. However, the figure increased marginally from the year-ago quarter.
Non-GAAP net revenues grew 13.8% year over year to $570.4 million. However, the figure missed the Zacks Consensus Estimate of $579 million.
The year-over-year increase in revenues was driven by robust growth in Weibo’s ad and marketing revenues and user base expansion.
Advertising revenues (84.9% of total revenues) increased 14% year over year to $484.3 million, primarily driven by an increase of $84.7 million in Weibo advertising and marketing revenues. However, the decline in portal advertising revenues and unfavourable currency translation partially offset the increase.
Non-advertising (non-GAAP) revenues increased 12.7% year over year to $88.7 million. The increase was primarily attributed to revenues generated from Weibo’s acquired live broadcasting platform and growth in Weibo membership fees.
Revenues from Weibo (WB - Free Report) business grew 27.7% year over year to $482 million, primarily driven by robust growth in user base. SINA holds 46% stake in Weibo.
Notably, Weibo’s monthly active users (MAU) totaled 462 million in the reported quarter, a net addition of approximately 70 million users on a year-over-year basis.
Moreover, Weibo's average daily active users (DAU) were 200 million in the reported quarter, a net addition of approximately 28 million users on a year-over-year basis.
Weibo’s non-ad revenues surged 43.9% to $64.9 million and ad and marketing revenues grew 25.5% to $417.1 million in the reported quarter.
Portal advertising revenues declined 29.3% year over year to $67.4 million. Decline in Small Medium Enterprise (SME) customers’, who operate in sectors with strict regulation, ad budget negatively impacted growth.
Notably, Mobile app revenues accounted for 81% of total portal ad revenues compared with 59% in the year-ago quarter.
Portal non-advertising revenues declined 29.3% to $67.4 million. This decline was attributed to weakness in the payment business.
SINA is witnessing higher adoption of KL marketing among brand advertisers, which is a positive.
Sina Corporation Price, Consensus and EPS Surprise