Weibo may generate cash in H1
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Shanghai Daily, August 19, 2011
Sina.com, operator of China's most popular microblogging platform Weibo.com, plans to make money from the service as early as the first half of 2012 and will continue investing in the microblogging service to cement its market position.
Sina, which also operates one of the leading Chinese web portals, said profit plunged 60 percent in the second quarter from a year ago to US$10 million as it spent heavily to promote the microblogging service and upgraded products to retain more users.
"We will focus on developing an advertising system and improve the micro-payment system for Weibo and may see it generating revenue in the first half next year," Chairman and Chief Executive Officer Charles Chao told a conference call yesterday.
Sina unveiled its Weibi virtual currency last month in a bid to introduce more value-added services to users.
Chao said earlier this year marketing expenses and research and development spending on the platform may go beyond US$100 million in 2011. Operating expenses surged 87 percent to US$59.7 million in the three months ended June 30. Advertising income rose 21 percent annually to US$114.3 million.
The firm sees third quarter revenue at between US$123 million and US$126 million.
