Dallas, Texas 05/27/2014 (FINANCIALSTRENDS) – Leading internet television company of China, YoukuTudou Inc. (ADR) (NYSE:YOKU) recently announced its unaudited financial results for 1Q14. The company reported net revenues of $112.7 million (RMB700.4 million), up 36% from 1Q13 and in line with the previous guidance announced by the company. The increase in net revenues was largely driven by a significant increase in the company’s advertising net revenues which was reported at $100.3 million (RMB623.3 million) for 1Q14. The company experienced greater use by brand advertisers of its advertising services during 1Q14 which was evident from the increased number of advertisers as well as higher average spend per advertiser.
YoukuTudou Inc. (ADR) (NYSE:YOKU) reported 2% decline in its bandwidth costs as a percentage of net revenues which was reported at 29% for 1Q14 as compared to 31% for 1Q13. Bandwidth costs were $32.5 million (RMB201.9 million) as a component of cost of revenues during 1Q14. Content costs were reported at $52.4 million (RMB325.7 million) as a component of cost of revenues during 1Q14. On a non-GAAP measure, content costs were 44% of net revenues during 1Q14 as compared to 49% during 1Q13.
YoukuTudou’s gross profit increased five folds to $13.8 million (RMB85.6 million) during 1Q14 as compared to 1Q13. Operating expenses, however, increased to $50.5 million (RMB314.1 million) during 1Q14 as compared to $43.1 million (RMB267.8 million) during 1Q13. Sales and marketing expenses also increased to $30 million (RMB186.5 million) during 1Q14 as compared to $20.5 million (RMB127.6 million) during 1Q13 because of higher commission expenses paid during the quarter.
YoukuTudou Inc. (ADR) (NYSE:YOKU) reported net loss of $36.1 million (RMB224.7 million) in 1Q14, down from $37.4 million (RMB232.5 million) for 1Q13. Adjusted EBITDA loss, on a non-GAAP measure, decreased 32% to $19.3 million (RMB120.2 million) during 1Q14 as compared to 1Q13.
On Friday, the stock of YoukuTudou lost 0.44% and closed at $20.31.