Weibo Q3 net profit surges 110%

China’s Weibo microblogging site said on Wednesday its third quarter profits jumped 110 percent from a year earlier to US$115.2 million, driven by booming online advertising income.

Revenue jumped 81 percent to US$320 million as Weibo’s monthly active user base increased 79 million to 376 million by the end of September.

About 96 percent of its users now access the service through mobile devices.

It has also offered a light version for lower tier cities, targeting basic phone users and those with relatively slow Internet connections.

The company’s user base in the third and fourth tier cities added 34 percent from a year earlier.

“We are creating a virtuous cycle of growth in Weibo by translating user base expansion and engagement growth into stronger monetization capabilities,” said chief executive officer Wang Gaofei.

Advertising and marketing revenue in the three months ended September 30 jumped 77 percent from a year earlier to US$276.8 million thanks to strong spending from key accounts and small and medium sized advertisers.

Video and live-streaming services also picked up, with the short video viewership increasing 170 percent.

“We have been continuously expanding the advertising customer base and improving ad systems efficiency as well as developing innovative marketing solutions,” Wang added.

Weibo expects net revenue of roughly $360million in the fourth quarter, up from US$213 million a year earlier.

BoCom International wrote in a research note on Wednesday that it expects revenue in 2017 to reach US$1.57 billion, as advertising earnings continue to rise due to the company’s position as the leading social media platform and further growth potential with the launch of a new advertising system.

It is aiming for a target share price of US$140. It closed at US$99 on Wednesday.