Earnings: Hurray Revenues Down 20.4 Percent

Chinese mobile content company Hurray has released its second quarter results for the three months ending June 30th. Total revenues fell 20.4 percent year-on-year to $14.6 million, which was below the company’s previous guidance of $15-16 million. Its net income was $0.2 million, a decline of 88.7 percent year-on-year — but it still is a profit. Hurray’s wireless value-added services busines saw revenues decline 23.1 percent year-on-year from $16.6 million to $12.7 million, which accounts for most of the lost revenue. Its recorded music revenues (from the music companies it controls, Freeland Music, Huayi Brothers Music and Secular Bird) grew 33.5 percent year-on-year to $1.8 million, while its software and system integration services revenues fell 95.3 percent year-on-year to $0.2 million. The company has almost $67 million in cash assets.

Hurray has a few efforts up its sleeve to diversify its business. It has launched an IVR radio interactive program in a partnership, the revenue of which was $4.5 million for the second quarter, an increase of 165 percent compared to the first quarter. It has also formed a JV with a subsidiary of Beijing TV, and announced that its newest division, Enterprise Services (providing mobile CRM solutions to companies) has signed up Air China and P&G China, although revenue is still not significant.

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