Sina publishes fourth-quarter unaudited financial report

Shanghai, China (February 24, 2014)--Sina (NASDAQ Gs:sina), the leading online media company serving China and the global Chinese community, today released unaudited financial reports for the fourth quarter and 2013 of December 31, 2013.

2013 fourth quarter focus results

• Net revenue of USD 197 million, up 42% from a year earlier. Non-US GAAP net revenue was $192.3 million, up 43% from a year earlier, within the company's expected range of $190 million to $194 million.

• Advertising revenue of 160.1 million U.S. dollars, up 45% from a year earlier, within the company's 160 million U.S. dollars to 162 million U.S. dollars expected range.

• Non-advertising revenue of 36.9 million US dollars, up 30% from a year earlier. Non-US GAAP revenue is 32.3 million U.S. dollars, up 36% from a year earlier, exceeding the company's expected range of $30 million to $32 million.

• Sina should account for a net profit of USD 44.5 million, with a net income of 59 cents per share. Non-US general accounting Standards Sina should account for a net profit of USD 33 million, an increase of 267% over a year earlier, and a net income of 47 cents per share.

2013 Annual Focus Results

• Net revenue of USD 665.1 million, up 26% from last year. Non-US GAAP net revenue is 646.4 million US dollars, up 27% from last year.

• Advertising revenue of 526.5 million U.S. dollars, up from the previous year's growth of 28%.

• Non-advertising revenue of 138.6 million U.S. dollars, up from the previous year's growth of 19%. Non-US general accounting standards for non-advertising revenue of 119.9 million U.S. dollars, the year-on-year growth of 23%.

• 2013 Sina should account for a net profit of 45.1 million U.S. dollars, a share of diluted net income 66 cents. 2013 Non-US GAAP Sina should account for a net profit of USD 77.3 million, an increase of 645% per cent over a year earlier, and a net income of $1.13 for each share, up 653% from a year earlier.

"The good performance of Weibo advertising and value-added services in the quarter helped us to achieve strong revenue and profit growth, a success for 2013," said Cao Chao, chief executive and chairman of Sina. As we enter the 2014, we will continue to focus on product innovation to promote the microblogging user base and use time growth, while seizing the opportunity to help us grow in the long term. ”

2013 Fourth quarterly corporate performance

Net revenue was $197 million in the fourth quarter of 2013, at $139.1 million a year earlier. The non-US GAAP net revenue was $192.3 million, a year earlier, at $134.4 million trillion.

In the fourth quarter of 2013, internet advertising revenue was 160.1 million U.S. dollars, a year earlier to 110.7 million U.S. dollars. In the fourth quarter of 2013, microblog advertising revenue rose 163% to $56 million. In the fourth quarter of 2013, the ad revenue was $36.9 million, a year earlier, at $28.5 million. Non-US GAAP revenue for the fourth quarter of 2013 was $32.3 million trillion, compared with $23.8 million a year earlier. In the fourth quarter of 2013, Weibo's advertising revenue was 15.4 million U.S. dollars, up 114% from a year earlier, from the company's launch of data-licensing services and the growth of other fee-based services, such as microblogging game revenue sharing and Weibo membership fees.

Gross margin was 64% in the fourth quarter of 2013, more than 57% a year earlier. In the fourth quarter of 2013, the gross profit margin of advertising business was 64%, a year earlier 56%. In the fourth quarter of 2013, the gross profit margin for non-US general accounting standards increased to 64%, over a year earlier of 57%, thanks to the company's focus on profitable revenue growth. In the fourth quarter of 2013, the gross profit margin of non-advertising business was 66%, exceeding 61% in the previous year. In the fourth quarter of 2013, non-US general accounting standards for non-advertising business gross profit margin increased to 61%, over the same period of 54%, which is mainly due to the revenue portfolio from the lower margin of mobile value-added services to higher margin of the microblogging value-added services.

Operating expenses for the fourth quarter of 2013 were $99.5 million trillion, compared with $73.8 million a year earlier. Non-US GAAP operating expenses for the fourth quarter of 2013 were $94.3 million trillion, compared with $69 million a year earlier. The growth of non-US general accounting standard operating expenses is mainly related to the increase in human cost and marketing expenditure.

Operating profit was $27.4 million in the fourth quarter of 2013, at $5.6 million a year earlier. Non-US GAAP operating profit was $28.6 million in the fourth quarter of 2013, at $6.4 million a year earlier.

In the fourth quarter of 2013, the operating profit was USD 24.5 million, which was a non operating loss of $2.1 million a year earlier. Non-operating profits in the fourth quarter of 2013 included a 19.5 million dollar gain from the fair value adjustment of investors ' options liabilities associated with Alibaba's investment in Weibo. In the fourth quarter of 2013, the operating profit also includes 3.5 million U.S. dollars of equity investment income, according to non-US general accounting standards combined with income of 5.8 million U.S. dollars, equity investment income in accordance with the equity accounting law, its announcement deferred a quarter. In the fourth quarter of 2012, non-operating losses included 4.4 million U.S. dollar equity investment losses, based on non-US general accounting standards combined with a loss of 400,000 U.S. dollars.

In the fourth quarter of 2013, Sina accounted for a net profit of USD 44.5 million, a year earlier to $2.4 million. In the fourth quarter of 2013, Sina accounted for a thin net profit of 59 cents per share, 3 cents a year earlier. Non-US general accounting standards in the fourth quarter of 2013 Sina should account for a net profit of USD 33 million, which was $9 million a year earlier. Non-US general accounting standards for the fourth quarter of 2013 Sina should account for 47 cents per share, 13 cents a year earlier.

As of December 31, 2013, Sina's cash, cash equivalents and short-term investment amounted to USD 1.8682 billion, up to December 31, 2012 of USD 713.6 million. In addition to corporate profits, the increase in cash, cash equivalents and short-term investments was due to the issuance of 800 million US dollar convertible bonds in the fourth quarter of 2013 and the simultaneous 100 million dollar share buybacks, as well as the cash received from Alibaba in the second quarter of 2013 in connection with its investment microblog. Operating activities in the fourth quarter of 2013 provided cash for USD 41.9 million, capital expenditure of USD 37.1 million, and depreciation and amortization costs of USD 9.4 million.

Other matters

November 18, 2013, the company held the annual shareholder meeting. At this meeting, shareholders again elect Cao Defong and Zhang as Sina directors. The shareholder also approved and approved the independent auditor's Office of PwC (Special General Partnership) Beijing Branch for Sina in the fiscal year ended December 31, 2013.

Performance Outlook

Sina expects non-US GAAP net revenue in the first quarter of 2014 to be between $162 million trillion and $167 million trillion, with advertising revenues between 133 million and 136 million dollars, and non-US GAAP advertising revenues between 29 million US dollars and 31 million dollars. Non-US general accounting standards Net revenue and non-US GAAP non-advertising revenue does not include the 4.7 million-dollar amortization and deferred revenue associated with Sina's equity investment in/cric (China Real Estate Information Group).

Conference

Sina Company is scheduled to the eastern time February 24, 2014 8 o'clock in the evening (Beijing time February 25, 2014 9 o'clock in the morning) to convene a conference call to inform the Company's financial and operating conditions. Users can listen to the meeting live on the company website Http://corp.sina.com Online. The access numbers for this conference call are: +1 845 675 0438 (USA), +852 3051 2745 (Hong Kong), and the passwords are: 69341609. The recording of this conference call will be in the eastern time of March 3, 2014, the end of midnight, listen to the record of the telephone access number is: +61 2 8199 0299; password: 69341609.

Sina Introduction

Sina is a network media company that serves China and the global Chinese community. Sina through the Portal Sina Network (sina.com), social media Sina Weibo (weibo.com), mobile portal phone Sina (sina.cn) and other mobile applications of digital media network, To help customers through the Internet and mobile devices to obtain professional media and user-generated multimedia content and share with friends.

Through its many regional websites, Sina provides professional content for local users and provides a range of value-added services. Sina Weibo is a social media based on an open platform architecture that provides microblogging and social networking services to help users communicate with and share information with anyone, anytime, and through open platforms that provide applications for development and Third-party development. Mobile Sina for Mobile (WAP) users to provide customized information from the Sina Portal and entertainment content. We have also developed a wide range of mobile applications, including Sina News, Sina Sports, Sina Finance and Sina Entertainment, and so on, with complete mobile products and services.

Sina through the above main business and other lines to provide customers with a series of network media and social networking services for enterprises and brand advertisers to create their target customers and communication channels. Most of the company's revenue comes from online brand advertising, mobile value-added services and fee-based service.