Earnings: China’s Linktone Revs Jump 44 Percent In Q1


Linktone (NSDQ: LTON), a Beijing-based company that provides wireless interactive entertainment services to consumers and advertising services to enterprises in China, announced its first-quarter financial results today, saying that revenues increased to $20.5 million, compared to the year ago period when it recorded $14.2 million. At the same time, the company said its net loss increased to $4.2 million from the year ago period’s $3.4 million, but narrowed compared to Q4 when it recorded a loss of $7 million. Linktone said its Q1 mix included data-related services (such as SMS, MMS, WAP, and Java), audio-related services and advertising services. Release.

Here’s a breakdown of revenues:

— Data-related services revenue was $7.3 million, representing 36 percent of total revenues, compared with $5.9 million in Q4. The company said the increase was due to an increase in text messages during the first quarter which included school holidays and the Spring Festival.

— Audio-related services accounted for 40 percent, or $8.3 million of total revenues, compared with 52 percent or $8.3 million for Q4 2007.

— Advertising service revenue accounted for 20 percent or $4 million of total revenues in the Q1, compared with 8 percent, or $1.3 million for Q4 2007. The increase in advertising revenue was attributable to the agreement to act as the exclusive agent for the sale of advertising in specific time slots on TJSTV effective January 2008.

— Going forward, in Q2, Linktone expects gross revenue to be about $16.5 to $18 million, game revenues to be between $12.5 and $13 million, and advertising revenues to be between $4 and $5 million.

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