RSS   Newsletter   Contact   Advertise with us

Sungy Mobile Q4 revenues increased 63.5%

Staff writer ▼ | March 27, 2014
Sungy Mobile Limited announced its unaudited financial results for the fourth quarter and full year ended December 31, 2013. Total revenues for Q4 increased by 63.5% to RMB98.9 million ($16.3 million) from RMB60.5 million in the prior year period.
Sungy Mobile
Sungy MobileSungy Mobile Limited announced its unaudited financial results for the fourth quarter and full year ended December 31, 2013. Total revenues for Q4 increased by 63.5% to RMB98.9 million ($16.3 million) from RMB60.5 million in the prior year period.


Revenues from mobile application products and services increased by 230.7% to RMB50.9 million ($8.4 million) in the fourth quarter of 2013 from RMB15.4 million in the prior year period. This increase was primarily driven by a 407.6% year-over-year increase in marketing revenues related to GO series products to RMB33.5 million ($5.5 million) and a 97.7% year-over-year increase in the revenues from paid downloads to RMB17.4 million ($2.9 million).

Revenues from mobile reading services increased by 15.9% to RMB26.3 million ($4.3 million) in the fourth quarter of 2013 from RMB22.7 million in the prior year period, primarily driven by an increase in user demand and subscriptions to the Company's online literary content.

Revenues from mobile portal marketing service decreased to RMB14.5 million ($2.4 million) in the fourth quarter of 2013 from RMB16.5 million in the prior year period primarily due to the expected on-going shift in advertisers' preferred mobile marketing medium to individual mobile applications and away from mobile internet portals.

Revenues from others, which primarily consist of the promotion of third-party provided mobile applications or value-added services, increased by 22.5% to RMB7.2 million ($1.2 million) in the fourth quarter of 2013 from RMB5.9 million in the prior year period.

Cost of revenues increased by 17.6% to RMB24.7 million ($4.1 million) in the fourth quarter of 2013 from RMB21.0 million in the prior year period. This increase was primarily attributable to an increase in content acquisition costs and other costs relating to the expansion of the Company's overall business.

Gross profit increased by 87.8% to RMB74.2 million ($12.3 million) in the fourth quarter of 2013 from RMB39.5 million in the prior year period. Gross margin increased to 75.1% in the fourth quarter of 2013 from 65.3% in the prior year period.

The increase in gross margin was mainly attributable to the improved cost efficiency resulting from the scale effect associated with the Company's growing business as well as the Company's on-going shift to higher-margin mobile application products and services.

Net income increased by 76.4% to RMB30.8 million ($5.1 million) in the fourth quarter of 2013, from RMB17.5 million in the prior year period. Net margin in the fourth quarter of 2013 increased to 31.2% from 28.9% in the prior year period.

Accretion to the redeemable convertible preferred shares was RMB7.7 million ($1.3 million) in the fourth quarter of 2013, compared to RMB14.5 million in the prior year period. The accretion of redeemable convertible preferred shares was related to the preferred shares which were automatically converted to ordinary shares upon the completion of the Company's initial public offering on November 22, 2013 and therefore, are non-recurring following the Company's initial public offering.

Net income attributable to ordinary shareholders was RMB23.1 million ($3.8 million) in the fourth quarter of 2013, compared RMB2.9 million in the prior year period.

Adjusted EBIT increased by 228.9% to RMB34.9 million ($5.8 million) in the fourth quarter of 2013 from RMB10.6 million in the prior year period. Adjusted EBIT margin increased to 35.3% in the fourth quarter of 2013 from 17.5% in the prior year period.

Adjusted net income3 increased by 151.2% to RMB44.1 million ($7.3 million) from RMB17.6 million in the prior year period. Adjusted net margin4 increased to 44.6% in the fourth quarter of 2013 from 29.0% in the prior year period.

For the full year of 2013, total revenues increased by 77.5% to RMB328.8 million ($54.3 million) from RMB185.2 million in 2012.

Revenues from mobile application products and services increased by 350.3% to RMB153.4 million ($25.3 million) for the full year of 2013 from RMB34.1 million in 2012. This increase was primarily driven by a year-over-year increase in marketing revenues related to GO series products of 648.7% to RMB89.1 million ($14.7 million) from RMB11.9 million and a year-over-year increase in the revenues from paid downloads of 189.6% increase to RMB64.3 million ($10.6 million) from RMB22.2 million in 2012.

Revenues from mobile reading services increased by 37.1% to RMB99.8 million ($16.5 million) from RMB72.8 million in 2012, primarily driven by the increase in user demand and subscriptions to the Company's online literary content.

Revenues from mobile portal marketing service decreased to RMB52.2 million ($8.6 million) from RMB57.5 million in 2012 primarily due to the expected on-going shift in advertisers' preferred mobile marketing medium to individual mobile applications and away from mobile internet portals.

Revenues from others increased by 12.4% to RMB23.5 million ($3.9 million) from RMB20.9 million in 2012.

Gross profit increased by 112.6% to RMB234.7 million ($38.8 million) from RMB110.4 million in the prior year. Gross margin increased to 71.4% from 59.6% in the prior year. The increase in gross margin was mainly attributable to the improved cost efficiency resulting from the scale effect associated with the Company's growing business as well as the Company's on-going shift to higher-margin mobile application products and services.

Operating income for the full year of 2013 increased significantly to RMB89.5 million ($14.8 million) from RMB4.8 million in the prior year. Operating margin increased to 27.2% in the full year of 2013 from 2.6% in the prior year. The increase in operating margin was primarily due to increased gross margin and operating leverage associated with the Company's expansion.

Net income for the full year of 2013 increased by 505.3% to RMB91.8 million ($15.2 million) from RMB15.2 million in the prior year. Net margin for the full year of 2013 increased to 27.9% from 8.2% in 2012.

Adjusted EBIT increased significantly to RMB107.7 million ($17.8 million) in the full year of 2013 from RMB8.5 million in 2012. Adjusted EBIT margin increased to 32.8% for the full year of 2013 from 4.6% in 2012.

Adjusted net income increased by 603.1% to 109.6 million ($18.1 million) from RMB15.6 million in 2012. Adjusted net margin increased to 33.3% for the full year of 2013 from 8.4% in 2012.

Diluted earnings per ADS for the full year of 2013 was RMB1.54 ($0.25), compared with a diluted loss per ADS of RMB4.98 for 2012.

Adjusted diluted earnings per ADS for the full year of 2013 was RMB2.21 ($0.36), compared with an adjusted diluted loss per ADS of RMB4.93 for 2012.


 

MORE INSIDE POST