Sina publishes third-quarter unaudited financial report

Shanghai, China (November 12, 2013)--Sina (NASDAQ Gs:sina), the leading online media company serving China and the global Chinese community, today released its unaudited financial report for the third quarter ending September 30, 2013.

2013 third quarter focus results

• Net revenue of USD 184.6 million, up 21% from a year earlier. Non-US GAAP net revenue of 179.9 million U.S. dollars, up 22% from a year earlier, to the company's 176 million U.S. dollars to 180 million U.S. dollars to the expected range of limits.

• Advertising revenue of 151.6 million U.S. dollars, up 26% from a year earlier, within the company's 151 million U.S. dollars to 153 million U.S. dollars expected range.

• Non-advertising revenue of 33.1 million US dollars, up 4% from a year earlier. Non-US general accounting standards for non-advertising revenue of 28.4 million U.S. dollars, up 5% from a year earlier, exceeding the company's expected range of 25 million to 27 million dollars, mainly thanks to the growth of micro-blogging value-added services revenue.

• Sina should account for a net profit of USD 25.4 million, an increase of 157% per cent over a year earlier, and a net income of 37 cents for each share. Non-US general accounting Standards Sina should account for a net profit of USD 28.5 million, an increase of 144% over a year earlier, and a net income of 42 cents per share.

Focus results for the nine months ended September 30, 2013

• Net revenue of USD 468.1 million, up 20% from a year earlier. Non-US GAAP net revenue was 454 million U.S. dollars, up 21% from a year earlier.

• Advertising revenue of 366.4 million US dollars, up 21% from a year earlier.

• Non-advertising revenue of 101.7 million US dollars, up 16% from a year earlier. Non-US general accounting standards for non-advertising revenue of 87.6 million U.S. dollars, up 19% from a year earlier.

• Sina should account for a net profit of USD 700,000, with a thin net loss of less than 1 cents per share. Non-US general accounting Standards Sina should account for a net profit of USD 44.3 million, which was $1.4 million a year earlier. Non-US general accounting Standards Sina should account for 65 cents per share of net income, 1 cents a year earlier.

"We are satisfied with the third quarter's performance and the profitability has been significantly enhanced by the strong commercialization of microblogs," said Cao Chao, chief executive and chairman of Sina. We are at the beginning of taking full advantage of user behavior and providing more interesting and accurate advertising and services. We continue to invest in and innovate products while realizing the diversification of microblogs, which not only leads to accelerated revenue growth, but also promotes a sustained rise in profitability. ”

2013 third quarter Corporate performance

Net revenue was $184.6 million in the third quarter of 2013, at $152.4 million a year earlier. Non-US general accounting standards Net revenue of 179.9 million U.S. dollars, the same period last year, 147.7 million U.S. dollars.

In the third quarter of 2013, internet advertising revenue was 151.6 million U.S. dollars, a year earlier to 120.6 million U.S. dollars. In the third quarter of 2013, microblog advertising revenue rose 125% to $43.7 million. Non-advertising revenue for the third quarter of 2013 was $33.1 million trillion, compared with $31.8 million a year earlier. Non-U.S. general accounting standards in the third quarter of 2013, non-advertising revenue 28.4 million U.S. dollars, the same period last year, 27.1 million U.S. dollars. In the third quarter of 2013, micro-blog value-added business revenue of 9.7 million U.S. dollars, an increase of 121%, including from the online game to share revenue and micro-blog membership fees.

In the nine months ended September 30, 2013, net revenue was $468.1 million, a year earlier, at $390.2 million trillion. Non-US general accounting standards Net revenue of 454 million U.S. dollars, the same period last year, 376.1 million U.S. dollars. For the nine months ended September 30, 2013, advertising revenue was 366.4 million U.S. dollars, 302.3 million dollars a year earlier. Non-US general accounting standards advertising revenue of 87.6 million U.S. dollars, the same period of 73.9 million U.S. dollars. Non-US general accounting standards The year-on-year increase in non-advertising revenue was mainly due to the increase in the revenue of microblogging value-added services, which was partially offset by the decline in mobile value-added services revenue.

Gross margin was 64% in the third quarter of 2013, more than 54% a year earlier. Advertising business gross profit margin of 64%, the same period of 55%. Non-US general accounting standards advertising business gross profit margin increased to 64%, more than 56% a year earlier, thanks to the company's commitment to enhance the core advertising business profitability. In the third quarter of 2013, the gross profit margin of non-advertising business was 64%, exceeding 51% in the previous year. Non-US general accounting standards in the third quarter of 2013 the gross profit margin rose to 58%, more than 43% over a year earlier, thanks largely to increased revenue contributions from higher-margin microblogging value-added services.

In the nine months ended September 30, 2013, the gross margin was 57%, over a year earlier of 52%. Non-US general accounting standards advertising business gross profit margin of 58%, more than a year earlier 52%, thanks to the company's commitment to improve the profitability of advertising business. In the nine months ended September 30, 2013, non-US general accounting standards for non-advertising business gross profit margin of 52%, over the same period of 44%, 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 in the third quarter of 2013 were $94.9 million trillion, compared with $79.2 million a year earlier. Non-US GAAP operating expenses for the third quarter of 2013 were $90.5 million trillion, compared with $73.7 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.

In the nine-month period ending September 30, 2013, operating expenses were $271.9 million and 216.2 million dollars a year earlier. Non-US GAAP operating expenses were $235.7 million trillion, at $204.6 million a year earlier, related to increased manpower costs and increased marketing spending as a result of increasing staff and overall pay.

Operating profit was $23.2 million in the third quarter of 2013, at $3.8 million a year earlier. Non-US GAAP operating profit was $23.4 million in the third quarter of 2013, at $5.4 million a year earlier.

In the nine months ended September 30, 2013, the operating loss was $4.9 million, a year earlier, at $14.1 million. In the nine months ended September 30, 2013, non-US general accounting standards operating profit of 23 million U.S. dollars, a year earlier than the United States General accounting standards operating loss of 14.2 million U.S. dollars.

Operating profit was $7.7 million in the third quarter of 2013, compared with $8.3 million a year earlier. Non-operating profit in the third quarter of 2013 including 3.2 million U.S. dollar equity investment income, according to non-US general accounting standards combined with income of 5.7 million U.S. dollars, equity investment proceeds in accordance with the equity accounting method, the announcement of the deferred one-quarter.

In the nine months ended September 30, 2013, the operating profit was $11.3 million, and the same period was $45.2 million a year earlier. The profit includes 6 million U.S. dollars in equity investment income, according to non-US general accounting standards combined with income of 14.7 million U.S. dollars, equity investment proceeds in accordance with the equity accounting method, the announcement deferred a quarter.

In the third quarter of 2013, Sina accounted for a net profit of USD 25.4 million, a year earlier to $9.9 million. In the third quarter of 2013, Sina should share a thin net profit of 37 cents, 14 cents a year earlier. Non-US general accounting standards in the third quarter of 2013 Sina should account for a net profit of USD 28.5 million, which was $11.7 million a year earlier. Non-US general accounting standards for the third quarter of 2013 Sina should account for 42 cents per share, 17 cents a year earlier.

In the nine months ending September 30, 2013, Sina should account for a net profit of USD 700,000, with a thin net loss of less than 1 cents per share, and Sina should account for a net profit of 29.4 million U.S. dollars a year earlier, with a diluted net profit of 43 cents per share. In the nine months ended September 30, 2013, the Non-US GAAP Sina should account for a net profit of USD 44.3 million, a diluted net profit of 65 cents per share, and a year ago the non-US GAAP Sina should account for a net profit of USD 1.4 million, with a diluted net profit of 1 cents per share.

As of September 30, 2013, Sina's cash, cash equivalents and short-term investment amounted to USD 1.2179 billion, up to December 31, 2012 of USD 713.6 million. The increase in cash, cash equivalents and short-term investments was mainly the net cash from Alibaba in the last quarter. Operating activities in the third quarter of 2013 provided cash for USD 12.3 million, capital expenditure of USD 24.3 million and depreciation cost of USD 8.6 million.

Performance Outlook

Sina expects the fourth quarter of 2013 of non-US GAAP net revenue will be between 190 million U.S. dollars to 194 million U.S. dollars, advertising revenue will be between 160 million U.S. dollars to 162 million U.S. dollars, non-US general accounting standards Advertising revenue will be between 30 million U.S. dollars to 32 million U.S. 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 November 12, 2013 8 o'clock in the evening (Beijing time November 13, 2013 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: 96197754. The recording of this conference call will be in the eastern time of November 19, 2013, the end of midnight, listen to the record of the telephone access number is: +61 2 8199 0299; password: 96197754.

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 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.