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Youku Revenue up 84% in Q3; Reports Net Profit for 1st Time

11-30 13:31 Caijing
"Youku alone has achieved profitability at the operational level in the third quarter. This is an important milestone for the company"

Youku Tudou, China’s leading internet television company, reported a net revenue of RMB502.2 million (US$79.9 million) in the third quarter, of which Youku's net revenues were RMB483.5 million (US$76.9 million), an 84% increase from the corresponding period in 2011, driven by an increased number of advertisers as well as average spending per advertiser.

Number of advertisers in the third quarter grew to 316 from 296 while the average spending from per advertiser rose to RMB1.7million from RMB 1.0million in the same period of the previous year.

Youku Tudou Inc. (NYSE: YOKU), a merger between Youku and Tudou,China’s two leading internet television companies, announced its unaudited financial results for the third quarter 2012 on Thursday.

The completion of the merger between Youku and Tudou was announced on August, 2012, but the two units will be operated seperately until the end of the third quarter 2012.

Youku's non-GAAP net profit, excluding share-based compensation expenses, investment loss and business combination related expenses, wasRMB25.3 million (US$4.0 million) in the third quarter of 2012, compared to a net loss of RMB28.2 million (US$4.5 million) in the corresponding period in 2011.

“Youku alone has achieved profitability at the operational level in the third quarter. This is an important milestone for the company," Youku Tudou said in the report.

Net loss in the third quarter was RMB91.5 million (US$14.6 million), of which Youku's net loss was RMB91.5 million (US$14.6 million), down from a net loss of RMB47.5 million (US$7.6 million) for the same period in 2011.

Youku Tudou has witnessed a significant traffic growth in mobile internet sector as it is quickly becoming an important business that contributes significantly to the company’s growth, said Dele Liu, President of Youku Tudou.

 "While we are excited by the opportunities ahead, we did not underestimate the challenges that may arise from this unprecedented large scale merger in China's Internet industry. However I believe we will cross over the most difficult terrain soon," Liu added.

The company expects net revenues for the fourth quarter of 2012 at between RMB610 million and RMB630 million, with advertising net revenues expected to grow by RMB560 million to RMB585 million.

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