YoukuTudou Inc. (ADR)(NYSE:YOKU): Net Revenues Jumps 36% in 1Q14

908

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.

Financial Details:

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.

Quarterly Earnings:

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.

Stock Update:

On Friday, the stock of YoukuTudou lost 0.44% and closed at $20.31.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.