Youku Tudou third Quarter 2012 unaudited financial results : content cost are rising / Acorn International Q32012 : -60% for the sales of mobile phones

China quick review : Youku Tudou & Acorn Q32012

Youku Tudou Q32012 Unaudited Financial Results : bandwidth costs are decreasing

Youku Tudou Inc., the main Chinese Internet television company, today announced its unaudited financial results for the third quarter 2012. Consolidated net revenues were RMB 502.2 million (US$ 79.9 million), of which Youku's net revenues were RMB 483.5 million (US$ 76.9 million), an 84% increase from the corresponding period in 2011, exceeding the high end of the revenue guidance previously announced. The growth was primarily attributable to the increased average spending per advertiser from RMB 1.0 million to RMB 1.7 million and increased number of advertisers from 296 to 316, representing an increase of 70% and 7%, respectively, from the corresponding period in 2011. Consolidated bandwidth costs as a component of cost of revenues were RMB 136.6 million, of which Youku's bandwidth costs were RMB 112.9 million, representing 23% of Youku's net revenues, as compared to 35% in Q32011. Consolidated content costs as a component of cost of revenues were RMB 182.0 million, of which Youku's content costs as a component of cost of revenues were RMB 136.4 million, representing 28% of Youku's net revenues, as compared to 26% in Q32011. The increase was primarily due to content price increase during 2011. For the fourth quarter of 2012, the Company expects net revenues will be between RMB 610 million and RMB 630 million, with advertising net revenues grow by RMB 560 million to RMB 585 million.

Acorn International reports Third Quarter 2012 Financial Results : yes to fitness

International, Inc., a media and branding company in China engaged in developing, promoting and selling products through direct and distribution networks, today announced its unaudited financial results for the quarter ended September 30, 2012. Net revenues were $69.2 million, down 35.8% from $107.8 million for the third quarter of 2011. Net loss attributable to Acorn was $1.1 million, compared to net income of $1.5 million for the third quarter of 2011. Sales of mobile phones generated revenues of $17.4 million (25.1% of total revenues), down 60.8% from the third quarter of 2011. Revenues rom fitness products were $17.8 million, representing 25.7% of total revenues. Other direct sales platforms, represented by third-party bank channels, outbound calls, catalogs and Internet sales declined 37.6% in the third quarter of 2012 as compared to the third quarter of 2011. The decline in other direct sales was primarily due to the lower sales from third-party bank channels as well as the outbound calls and catalogs sales.

 

2012 Q3

Sales

2011 Q3

Sales

 

$'000

%

$'000

%

Fitness products

17,819

25.7%

1,446

1.3%

Mobile phones

17,423

25.1%

44,483

41.2%

Electronic learning products

17,238

24.8%

25,454

23.6%

Collectible products

5,112

7.4%

8,344

7.7%

Health products 

4,082

5.9%

4,427

4.1%

Cosmetics 

1,513

2.2%

8,028

7.4%

Consumer electronics 

1,186

1.7%

8,028

7.4%

Other products

5,017

7.2%

7,849

7.3%

Total gross revenues

69,390

100%

108,059

100%