Cool 6 burn money too hard cash is insufficient to support third-quarter operations

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August 30 Cool 6 Media announced the results of the second quarter of June 30, 2010, the two-quarter net loss widened to 11.8 million U.S. dollars, compared with the last quarter net deficit of 10.4 million U.S. dollars, the same period last year for 10.9 million U.S. dollars. In the second quarter from the continuing business (video website advertising) revenue of 2.4 million U.S. dollars, the business net loss of 14.7 million U.S. dollars, the chain expansion of 60.4%. Cool 6 media reported on the day, the shares of the lower 1.99% after the decline continued downward, plunged 18.18%, closing price of 2.88 U.S. dollars near the lowest 52 weeks. The previous trading day, cool 6 share price fell 10.43%, so counted, the stock fell two days to 30% of the market value. The impact of the cool 6 share price crash, the grand game closed down 5.18%, reported 5.49 U.S. dollars. With cool 6 share price trend is similar, the grand game recent performance is poor, last week 5 trading days all closed down.

Cool 6 media reported two-quarter earnings, the cash and cash equivalent of 12.87 million U.S. dollars, compared to the first quarter of 52.64 million dollars in cash, as well as the 2009 four quarter 48.48 million U.S. dollars in cash, two quarter cash holdings, cash and cash equivalent of 12.87 million U.S. dollars, Almost burned three-fourths of all the net worth.

Cool 6 Media available cash volume 12.87 million dollars and has not been enough to support its third-quarter operations, even after a takeover deal with the club's Shanda network, which sold record music and wireless value-added services at around $36.9 million trillion, and sold 36.9 million dollars in time to cool 6 accounts, According to the current cool 6 of the rate of burning money (video business net loss of 14.7 million U.S. dollars), cool 6 hand cash can only support three quarters, need to continue to increase capital, or will have to sell the company assets.

All along, 酷6网 in the domestic video industry competition pattern, whether it is platform traffic, user size or media visibility in their competitors Youku and potatoes, and in recent years with CNTV, Baidu Odd Art, Sohu video, etc. into the field of video competition, cool 6 is being squeezed out to a lower market ranking position.

Flow ranking, industry position naturally determines the media value and marketing value of a platform. With the global development of video applications, video marketing has become the fastest rising hot marketing applications, many advertisers to video advertising and integrated marketing investment as a new marketing exploration, and this is cool 6 by virtue of the concept of video to attract a grand takeover of the key factors.

During the 2010 World Cup, cool 6 media really carried out a large-scale publicity and promotion of public relations, cool 6 had previously claimed, "酷6网 Day View (PV) peak reached 399 million", "more than 50 advertisers to put the World Cup ads" If this calculation, combined with the second quarter earnings announced its liquidity capacity of 2.4 million U.S. dollars, It can be seen how cheap a PV, and even if Q2 all the income into the World Cup ads, an advertiser not more than 50,000 dollars, enough to show that cool 6 platform impact, marketing level and comprehensive operating level in the industry are not high.

According to its World Cup income, the highest income in the second quarter of the 2.5 million dollar income, the first annual income is only tens of millions of yuan, but also includes hurray old business income. And its losses are nearly 500 million a year.

Historically, 酷6网 has been operating at low cost savings before being made a grand takeover. And wait until the acquisition, Cool 6 but uncharacteristically, on the way to spend money, the results show that cool 6 in just six months of cash consumption actually amounted to 44 million dollars, the change is very impressive.

At present, the domestic video industry development momentum is fierce, and cool 6 of the financial results show that the field of development is quite uneven, under the premise of higher video copyright prices, funds and profitability is testing all video sites, leading enterprises can get better income, and once behind the fear of extinction. The whole industry's healthy development depends on the user's experience and customer recognition, simple burning money is not the Chinese Internet's winning weapon. Field)