Youku Swings Violently After Earnings Miss
NEW YORK (TheStreet) -- Youku Tudou
Youku reported a first-quarter loss of RMB1.42 (23 cents) per ADS, which was wider than the loss of RMB1.39 expected by analysts, on average, according to Thomson Reuters. Revenue increased 21% to RMB516 million, beating the consensus target of RMB510.49 million.
The company reiterated its second-quarter revenue forecast of between RMB720 million and RMB770 million. Advertising revenues are expected to contribute between RMB700 million and RMB740 million to the second-quarter.
"I am pleased with our progress," Victor Koo, chairman and CEO of Youku Tudou said in a statement. "We are in the final phase of the merger integration process with Tudou and have completed the restructuring of our sales team in the first quarter. Our combined sales team is positively impacting demand and our increased scale is helping us to optimize our cost structure."
Koo said that three key video mobile traffic metrics used by the company recorded "exciting" growth in the first quarter. The company now has over 100 million active monthly users and over 170 million daily video views. On average, each user spends over 70 minutes on Youku Tudou.
Chinese Internet sites Youku and Tudou completed their merger last August, creating China's biggest video site. Tudou's financial results were consolidated into results after the merger was finalized, creating some confusion for investors trying to compare first-quarter 2013's results with first-quarter 2012's results, when the merger hadn't yet been completed.
"It's not exactly an Apple to Apple comparison," said Tian X. Hou, the founder of T. H. Capital LLC, which compiles research on U.S.-traded Chinese companies.
Written by Andrea Tse in New York
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