Weibo exceeds revenue expectations

Weibo, China’s largest microblogging site, posted better-than-expected revenue in the second quarter though profit was down 26.9 percent due to a strong sports-related marketing performance in the same period last year. 

Revenue was up 7 percent on a constant currency basis to US$431.8 million against a previous estimate of US$429 million, while profit was down 27 percent to US$103 million from US$140.9 million. 

Shares rose more than 7 percent on pre-market trading on Monday to US$39.9 on the Nasdaq.  

Monthly active users grew 13 percent to 486 million by the end of June, and 94 percent are visiting using smartphones or mobile devices. 

Advertising and marketing revenues remained flat at US$370.7 million while value-added service income rose 8 percent. 

A number of smaller and vertical social sites are emerging and Weibo has been bringing additional functions such as live-streaming and short-video to grab users. 

Advertising income from key accounts has remained largely resilient despite economic fluctuations, said Weibo's Chief Executive Wang Gaofei during an earnings call. He said the company intends to upgrade technology and user experience to further leverage its resources in celebrities and key opinion leaders to grab more marketing budgets. 

It will also be eying regional brands' advertising budgets which mostly go to regional TV stations. 

It expects revenue in the third quarter to add 6 percent to 9 percent from a year ago on a fixed currency basis.