|By PR Newswire||
|August 25, 2014 07:22 AM EDT||
HONG KONG, Aug. 25, 2014 /PRNewswire/ -- Pacific Online Ltd. (HKSE: 543) ("Pacific Online," the "Company," or the "Group"), a leading internet content provider in China, today announced its 2014 interim results for the six months ended June 30, 2014. The Group will host a conference call to discuss these results at 9:00AM Hong Kong time on August 26, 2014. Dial-in details are provided at the bottom of this release.
2014 Interim Financial Highlights
- Total revenues increased 18.4% year-over-year to RMB403.6 million
- Net profit increased 5.9% year-over-year to RMB94.6 million
"I am pleased to report an 18.4% year-over-year increase in revenues and a rise of 5.9% in net profit during the first half of 2014" commented Mr. Lam Wai Yan, Chairman and Chief Executive Officer of Pacific Online Limited. "Despite the economic uncertainty in China and increasingly intense market competition, we remain optimistic about the future of our business model which continues to generate both viewership and revenue growth. We believe that a greater focus on resource allocation will allow us to meet users' demand and allow us to seize new opportunities in China's vibrant e-commerce industry by leveraging our strength in different consumer verticals."
"PCauto continued to generate strong growth with revenue increasing 29.5%. The portal remains our most important revenue contributor accounting for 56.4% of total revenue during the first half of 2014. Growth was mainly driven by increased spending from both our automaker and dealership customers. Advertisements for car accessory products also showed signs of strong growth."
"Revenue from our IT-focused PConline portal declined 9.4%. PConline remains one of the leading verticals in the market and continued to see a stable increase in smart phone and tablet advertising spending. Revenue from software brands and e-commerce vendors also increased. The increases were offset however by a broader decline in demand for laptops and desktops in China."
"PClady's revenue increased 14.5% thanks to increasing demand for cosmetics and other fashion products, as well as a modest increase in skin-care products. We anticipate stronger growth during the second half of the year once strengthening of the portal's organizational structure and re-focusing on its product mix is complete."
"Revenue from other operations including PCgames, PCbaby, and PChouse increased 77.4% during the six months ended June 30, 2014. PCbaby, in particular, continued to attract increased online marketing spending from baby formula producers and diaper brands."
"We continue to develop strategic products that will contribute to the sustainable growth of the Group. These include our mobile websites and applications which facilitate traffic growth and closer relationships between our clients and users. Our three downloadable magazines maintained their top positions on Apple's iTunes recommendation list with more than 4 million downloads during the first half of this year. They are beginning to make meaningful revenue contribution to the Group.
"We recently made a strategic investment in a Silicon Valley-based venture capital fund which focuses primarily on the consumer and mobile technology sectors. The fund is expected to benefit us by offering opportunities to acquire knowledge of the latest technologies and business models from its portfolio companies."
"We remain optimistic in our outlook for the second half of 2014. While we have always taken a cautious approach, we are confident in our ability to maintain growth amidst challenges in the market."
2014 Interim Financial Results
Revenue increased 18.4% from RMB RMB341.0 million for the six months ended June 30, 2013 to RMB403.6 million for the six months ended June 30, 2014.
Revenue for PCauto, the Group's automobile portal, increased 29.5% from RMB175.8 million for the six months ended June 30, 2013 to RMB227.5 million during the six months ended June 30, 2014. The increase in revenue for PCauto was primarily due to increased advertising spending from automobile producers and dealerships. As a percentage of revenue, PCauto accounted for 51.5% during the six months ended June 30, 2013 and 56.4% during the six months ended June 30, 2014.
Revenue for PConline, the Group's IT and consumer electronics portal, decreased 9.4% from RMB 110.9 million during the six months ended June 30, 2013 to RMB100.4 million during the six months ended June 30, 2014. Advertising spending from smart phones and tablet manufacturers remained strong, but was offset by a decrease in demand from desktop and laptop computers. As a percentage of revenue, PConline accounted for 32.5 % during the six months ended June 30, 2013 and 24.9% during the six months ended June 30, 2014.
Revenue for PClady, the Group's lady and fashion portal, increased 14.5% from RMB 33.0 million during the six months ended June 30, 2013 to RMB37.8 million during the six months ended June 30, 2014. The increase reflected the strong demand in the women's segment, especially for cosmetics and fashion goods. As a percentage of revenue, PClady accounted for 9.7% during the six months ended June 30, 2013 and 9.3% during the six months ended June 30, 2014.
Revenue from other operations, including the PCgames, PCbaby and PChouse portals, increased by 77.4% from RMB 21.4 million during the six months ended June 30, 2013 to RMB37.9 million during the six months ended June 30, 2014. Revenue from these segments increased as advertisers allocated more of their marketing budgets towards online advertising. As a percentage of revenue, revenue from other operations accounted for 6.3 % during the six months ended June 30, 2013 and 9.4% during the six months ended June 30, 2014.
Cost of Revenue
Cost of revenue increased 22.6% from RMB 102.3 million during the six months ended June 30, 2013 to RMB125.4 million during the six months ended June 30, 2014. Gross profit margin was 70.0% during the six months ended June 30, 2013 and 68.9% during the six months ended June 30, 2014.
The increase in cost of revenue was due to a rise in personnel-related expenses in content production, as well as higher costs related to offline marketing activities.
Selling and Marketing Costs
Selling and marketing costs increased 25.9% from RMB 74.8 million during the six months ended June 30, 2013 to RMB94.2 million during the six months ended June 30, 2014. The increase was mainly due to increases in staff costs and marketing expenses related to brand development.
Administrative expenses increased by 12.3% from RMB33.6 million during the six months ended June 30, 2013 to RMB37.8 million during the six months ended June 30, 2014, due to an increase in headcount in support of the Group's growth during the year.
Product Development Expenses
Product development expenses increased by 22.7% from RMB22.5 million during the period ended June 30, 2013 to RMB27.7 million during the period ended June 30, 2014. The increase was primarily due to increases in the number of staff in the Group's research and development team.
Operating Profit before Share-based Compensation Expenses (non-GAAP)
Operating profit before share-based compensation expenses (non-GAAP) was RMB121.3 million during the six months ended June 30, 2014, representing a 10.8% increase from RMB109.5 million during the six months ended June 30, 2013.
Finance Income and Cost
Net finance income was RMB6.3 million during the six months ended June 30, 2013 and RMB4.2 million during the six months ended June 30, 2014.
Income Tax Expense
Income tax expenses increased 14.6% from RMB 24.5 million during the six months ended June 30, 2013 to RMB28.1 million during the six months ended June 30, 2014.
Net profit increased 5.9% from RMB89.4 million during the six months ended June 30, 2013 to RMB94.6 million during the six months ended June 30, 2014.
Liquidity and Financial Resources
As of June 30, 2014, the Group had short-term deposits and cash totaling RMB283.8 million, compared with RMB450.5 million as of June 30, 2013. The decline in cash was primarily due to the payment of a cash dividend totaling RMB 180.3 million during the six months ended 30 June 2014.
The Company had no external debt as of December 31, 2013 and June 30, 2014.
The Group believes that online advertising spending will continue to account for a higher share of overall marketing budgets in China. PCauto is expected to benefit from the continuous growth of new car retail sales in China. PClady and PCbaby are also expected to perform well. The Group remains well positioned to meet demand from a rapidly changing Chinese internet industry.
Management will host a conference call to discuss the results at 9:00 AM Hong Kong time on Tuesday, August 26, 2014 (8:00 PM Eastern Daylight Time on Monday, August 25, 2014). Mr. Lam Wai Yan, Chairman and Chief Executive Officer and, Mr. Ma Man Ho, Chief Financial Officer, will discuss the results and take questions following the prepared remarks.
The dial-in details for the live conference call are as follows:
- Hong Kong Number:
+852 3056 2688
- Mainland China Toll Free Number:
800 803 6152
- U.S. Toll Free Number:
+1 877 679 2987
- International dial-in number:
+852 3056 2688
A telephone replay of the call will be available for seven days after the conclusion of the conference call. The dial-in details for the replay are as follows:
- Hong Kong Number:
+852 3060 0238
- U.S. Toll Free Number:
+1 866 345 5132
About Pacific Online Ltd. (corp.pconline.com.cn)
Pacific Online is one of the leading Internet content providers in the PRC in terms of total advertising revenue. The Company operates six vertically-integrated portals, which, according to industry practice, are portals that focus on specific content. Among the Company's portals are PConline, one of the largest portals in the PRC specializing in IT product-related content, and PCauto, one of the largest portals in the PRC specializing in automobile-related content.
Safe Harbor Statement
This press release contains forward-looking statements which are subject to risks and uncertainties. Actual results may differ from those discussed in the press release. In addition, any projections about the Company's future performance represent management's estimates as of today August 25, 2014. The Company assumes no obligation to update these projections in the future as business and market conditions change.
For further information, please contact:
Pacific Online Ltd.
Tel: +852 2121 0634
Email: [email protected]
Christensen Investor Relations
Email: [email protected]
For a detailed look at the Group's financial statements, please visit its website at corp.pconline.com.cn
SOURCE Pacific Online Ltd.
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Apr. 29, 2016 11:45 AM EDT Reads: 2,190
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Apr. 29, 2016 11:30 AM EDT Reads: 436
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
Apr. 29, 2016 11:15 AM EDT Reads: 1,400
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
Apr. 29, 2016 10:30 AM EDT Reads: 397
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Apr. 29, 2016 10:00 AM EDT Reads: 1,096
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
Apr. 29, 2016 09:45 AM EDT Reads: 852
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Apr. 29, 2016 09:45 AM EDT Reads: 449
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Apr. 29, 2016 09:30 AM EDT Reads: 1,017
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Apr. 29, 2016 09:30 AM EDT Reads: 966
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Apr. 29, 2016 09:15 AM EDT Reads: 987
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Apr. 29, 2016 09:00 AM EDT Reads: 798
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Apr. 29, 2016 08:45 AM EDT Reads: 576
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Apr. 29, 2016 08:45 AM EDT Reads: 572
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
Apr. 29, 2016 08:30 AM EDT Reads: 577
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
Apr. 29, 2016 07:30 AM EDT Reads: 833