After market closed, SINA Corp. (SINA) reported revenues of $96.4 million in the third quarter of 2009. Revenues was down 8.6% year over year but was up 6.8% sequentially. Revenues exceeded the company's guidance of $91.0 – $94.0 million and easily beat the Zacks Consensus estimate of $94.0 million. This reflects strong execution of the company’s online advertising business in China , which grew double-digits sequentially. We expect a huge improvement in SINA’s advertising business, as advertising spending recovers. SINA expects to benefit from government stimulus packages. Moreover, management is witnessing signs of a strong recovery in the advertising market in China in the second half of this year, which is reflected in the company’s higher-than-expected guidance. Advertising revenues decreased 16.3% year over year but was up 10% quarter over quarter, exceeding the company’s guidance of $60.0 – $62.0 million. Non-advertising ...

SINA Corp. (SINA) is set to announce its third quarter results after the closing bell on Nov 16.   SINA’s third-quarter revenue guidance of $91–$94 million was below the Zacks Consensus Estimate. The company expects Advertising revenues to be $60–$62 million and non-advertising revenues to be $31–$32 million in the third quarter. SINA remains guarded on advertising spending particularly brand advertising as consumers remain cautious.   SINA is a leading provider of online media and value-added information services in China . Although the company’s second quarter results beat Zacks consensus estimates, it has been down on a year over year basis. The company is facing severe competition in its mobile and online brand advertising business.   However, the stock has rallied much and we expect the company to benefit from the growing trends in the wireless business. We expect a huge improvement in SINA’s advertising business, as advertising ...

ChinaNet Online Holdings, Inc., an online technology and software provider which has, since its inception in 2003, led the field in full-service media development for small and medium enterprises (SME’s), today announced the appointment of a new Chief Technology Officer (CTO).

Mr. Hongli Xu will be taking the job of CTO at ChinaNet. CEO of ChinaNet, Mr. Handong Cheng, proclaimed that “he will provide critical leadership as we continue to elevate ChinaNet’s position in the Chinese media and advertising markets”.

Cheng went on to extol the appointment, saying of the candidate that “Mr. Xu brings over two decades of experience in the internet and software development industry in various sectors”.

With two years as head of development and management of an entire suite of software products for ThinkingPower Technology Co., Ltd. – a company working in broadcast and television markets via e-government software applications – Mr. Xu has the experience

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Amid the secular and cyclical slowdown in print advertising The New York Times Company (NYT) recently reported third-quarter 2009 results that topped the Zacks Consensus Estimate. The New York Times quarterly earnings of 16 cents a share surpassed the Zacks Consensus Estimate of 2 cents, and the prior-year quarter earnings of 5 cents. The better-than-expected results came on the heels of significant cost-cutting measures and newspaper price increase. On a reported basis, including one-time items, the company reported a loss of 25 cents a share, a substantial improvement from the loss of 74 cents delivered in the year-ago quarter. Management now expects to save $475 million in operating costs in 2009 up from $450 million previously anticipated. Operating costs fell 21.6% to $490 million, whereas operating profit surged 30.2% to $80.6 million. Total revenue dipped 16.9% to $570.6 million, primarily due to lower print ...

Recently, CBS News, a unit of CBS Corporation (CBS) entered into a strategic deal with GlobalPost, a global news provider, whereby the latter will provide international news coverage to CBS for a monthly fee. The terms of the agreement were not disclosed yet.  Immense competition from cable and online media, and the shrinking print advertising revenue had compelled CBS and other broadcasters to scale back on international coverage by laying off reporters and editors to save costs, and to look for other cost effective way to get international news.  As per the deal, GlobalPost would offer its network of 70 correspondents placed in 50 countries readily available to CBS News. Since its launch in January 2009, the site has been gradually increasing its video contents and reportedly has an average of 400,000 unique visitors every month.  GlobalPost has already signed strategic deals with 25 other ...

Guidance Overview   SINA Corporation’s (SINA) third quarter revenue guidance of $91.0 – $94.0 million was below the Zacks Consensus Estimate of $97.0 million. The shares fell 1.12% and closed at $30 yesterday when the company’s lower third quarter 2009 outlook disappointed investors. SINA expects Advertising revenues to be $60.0 – $62.0 million and non-advertising revenues to be $31.0 – $32.0 million in the third quarter. The company remains guarded on advertising spending, particularly brand advertising, as consumers remain cautious. Economic growth in China has continued to slow down in the global economic downturn. SINA is also facing severe competition in its mobile business and expects it to be flat in the next few quarters. Competition in the online brand advertising field in China is fierce crowded by big players such as Sohu.com Inc. (SOHU), Shanda Interactive (SNDA) and Baidu, Inc. (BIDU)....

Companies featured in this edition of the newsletter: CVM, ICLK, IMUC, ITUI, IWEB, MBCI, NXOI, OMCM, ONEZ, PHC, SRCO, SVUL, XCR

Markets closed moderately higher yet again this week, as mostly better than expected economic data helped stave off profit taking to leave most indices in positive territory on the week. All told, the Dow ended the week up 0.4%, closing at 9544, up 38 points, bringing its YTD gains to 8.7%. The Nasdaq also gained 0.4% on the week to close at 2028, bringing its yearly gains to 28.6%, while the S&P 500 gained 0.3% and the Russell 2000 lost 0.3%, bringing their yearly gains to 13.9% and 16.1% respectively.

Economic news was in focus yet again this week in the absence of any market driving earnings data, as new home sales for July rose at 9.6%, posting its strongest gains since 2005. This positive development coupled with

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Companies featured in this edition of the newsletter: CVM, ICLK, IMUC, ITUI, IWEB, MBCI, NXOI, OMCM, ONEZ, PHC, SRCO, SVUL, XCR

Markets closed moderately higher yet again this week, as mostly better than expected economic data helped stave off profit taking to leave most indices in positive territory on the week. All told, the Dow ended the week up 0.4%, closing at 9544, up 38 points, bringing its YTD gains to 8.7%. The Nasdaq also gained 0.4% on the week to close at 2028, bringing its yearly gains to 28.6%, while the S&P 500 gained 0.3% and the Russell 2000 lost 0.3%, bringing their yearly gains to 13.9% and 16.1% respectively.

Economic news was in focus yet again this week in the absence of any market driving earnings data, as new home sales for July rose at 9.6%, posting its strongest gains since 2005. This positive development coupled with

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With the search business sorted out through the Microsoft (MSFT) deal, Yahoo Inc. (YHOO) is beginning to focus on other areas. The company announced two new initiatives to boost revenue.

The first is the expansion of its sales force in Southeast Asia. Internet usage in the region has been growing rapidly over the last few years, driving increasing interest in online advertising. Online advertising industries in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam are expected to grow around 60% between 2008 and 2010.

The newly appointed direct sales team will join forces with the existing Singapore-based team to develop localized marketing campaigns in Malaysia, the Philippines and Vietnam. The idea is to sell online advertising in form of display, search or through a mobile platform. We think this is a pertinent move and it is time Yahoo started cementing relationships in the region.

The second initiative

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Yesterday, Microsoft (MSFT) announced the sale of Razorfish, the digital advertising firm it received as part of the aQuantive acquisition in 2007. The consideration to be paid by Publicis Group, the acquirer, is around $530 million, partly in the form of cash and partly in 6.5 million Publicis Groupe treasury shares.   The agreement creates a win-win situation. Publicis Groupe gets to acquire a digital advertising company, which effectively transforms a quarter of its business to the digital model. With Internet usage increasing the world over, digital advertising is assuming increasing importance in today’s world. The price is also reasonable, given that the company generated around $400 million in revenues in 2008, and is expected to generate $360-370 million in 2009. The revenue decline is recession-related and does not indicate loss of position at customers. In fact, Razorfish’s customer base is another positive, as the company serves ...