Sina's wireless revenue is down year-on-year

Summary: Sina wireless revenue in the past year to reduce the recent loss of Sina Wireless, the business sector this Monday (December 10) completed, the content and technology departments will continue. Ten years ago to save Sina in the peril of the SP business, become the hardest hit by layoffs. On the one hand, SP income continues to decline

Sina's wireless revenue is down year-on-year

Sina Wireless recent layoffs, the business sector this Monday (December 10) completed, the content and technology departments will continue. Ten years ago to save Sina in the peril of the SP business, become the hardest hit by layoffs. On the one hand, SP income continues to decline, the flow of contribution to the marginal, on the other hand, wireless general manager Wang Gaofei to be responsible for Weibo, focused on wireless resources to help micro-bo deficit imminent, layoffs and shrinking become the main theme of Sina Wireless recently.

News says Sina Wireless multisectoral layoffs

"All know Now (SP) Big environment is bad, but this news still let everybody be somewhat unprepared, this time even has many close to ten years old staff," the person who said, the Sina Wireless BD (Commerce) department abruptly announced the layoff in Monday, finally left only 9 people. According to the plan, the product, the content center and the technical department and so on also will lay down the job, and the proportion is high.

"Compensation is in accordance with the labor law of the N+1,BD department left 9 people have not posts, waiting for other departments to complete the restructuring after the layoffs," the person speculated, according to the current momentum, five hundred or six hundred people Sina Wireless or will abolish more than half of the staff.

It is understood that the Sina Wireless department has two major business, one is the application of micro-blog Mobile client development operations, and second, through the operators and other channels to provide color ring, theme, hand tour, such as SP services, the latter became the hardest hit by the layoffs, "it is not meant to be in the 2G business investment in new resources and manpower."

In fact, the adjustment of SP business was early: in the analyst meeting after last quarter's earnings, Sina CFO Yu Zhengjun said, "mobile value-added services, operators in order to reduce user complaints, the closure of some of our existing promotional channels; and the whole industry is turning to smartphones, and this (SP) It will not be the area we focus on because its profit contribution is rather low.

As of press, Sina official to the above news not to declare.

Wireless marginalization: Traffic limited revenue decline

Ten years ago, by the SP this lifeline, Sina through the internet bubble, and to achieve profitability; ten years later, Android and iOS changed the SP's survival rules, mobile operators and other carriers turned around, SP scenery no longer.

Data from Sina's 2012 Q3 earnings show that its revenue from mobile value-added services in the quarter was only $19.08 million trillion, down 10.7% per cent, accounting for 12.5% of total revenue. The first three quarter mobile value-added business revenue for 55.77 million U.S. dollars, also down 10.3% year-on-year.

The trend of revenue marginalization will continue: according to Sina's earnings forecasts, Q4 non-advertising revenue (including mobile value-added services and microblogging platforms) is expected to be between 2200 and 24 million dollars, down 4% to 12% from a year earlier. Under Non-GAAP, mobile value-added services will drop 8 million to 9 million U.S. dollars Year-on-year, "the reason is that operators to reduce customer complaints of the new policy (note: The closure of the original part of the channel Sina)".

Traffic, Alexa shows that the SP service (sms.sina.com.cn) only contributed to the total station 0.69% traffic, not only with the portal of the information plate gap is very large, and Shanghai (0.67%), Fujian (0.57%) and other large local sites comparable. And the mobile end of the active degree of low--PV only 1.36, while Shanghai station is 2.77, Fujian station is 4.42.

Wang Gaofei's transfer became the last straw to crush the SP business.

At the beginning of last month, Peng Shaobin, general manager of Sina Weibo, resigned and Wang Gaofei the wireless department. Cao Chao, Sina's top priority for mobile business such as micro-blogging, he revealed at the analyst meeting, micro-blog ads have 15% to 20% from the mobile end. But the embarrassing reality is that micro-blogging applauded, continued to lose money. Take into account the microblogging and wireless Wang Gaofei, clean up the SP business of Wireless department, focus on the advantages of resources to get through mobile and micro Bo, imminent.