Finance 300 iStock_000024396800SmallNet revenues for the second quarter of 2015 were $23.1 million, an increase of 12.2% from $20.6 million for the corresponding period in 2014 and an increase of 68.7% from $13.7 million for the preceding period in 2015. The Company’s net revenues are categorized under: (a) revenues from financial services, which include brokerage-related and precious metals trading services; (b) revenues from financial information and advisory business, which include subscription services from individual and institutional customers; and (c) revenues from advertising services. During the second quarter of 2015, revenues from financial services, financial information and advisory business and advertising services contributed 73%, 20% and 7% of our net revenues, respectively, compared with 79%, 12% and 8%, respectively, for the corresponding period in 2014.

Revenues from financial services were $16.8 million, an increase of 2.7% from $16.4 million in the second quarter of 2014 and an increase of 76.7% from $9.5 million in the first quarter of 2015. Revenues from financial information and advisory business were $4.7 million, an increase of 90.8% from $2.5 million in the second quarter of 2014 and an increase of 118.2% from $2.2 million in the first quarter of 2015. In May 2015, the company launched a new iTouGu application with thematic portfolios built by advisors. Since then, there are around 1,800 investment advisors began actively mentoring retail investors. Revenues from advertising were $1.5 million, a decrease of 9.8% from $1.7 million in the second quarter of 2014 and a decrease of 24.5% from $2.0 million in the first quarter of 2015.

With the growth of iTouGu application downloads and desktop sign-ups, the total unique member registrations as of today have exceeded 500,000.

Gross profit was $18.3 million, an increase of 20.5% from $15.1 million in the second quarter of 2014 and an increase of 77.6% from $10.3 million in the first quarter of 2015. Gross margin in the second quarter of 2015 was 78.9% compared with 73.5% in the second quarter of 2014 and 75.0% in the first quarter of 2015.

General and administrative (“G&A”) expenses were $6.1 million, an increase of 59.0% from $3.8 million in the second quarter of 2014, and an increase of 106.1% from $3.0 million in the first quarter for 2015. The increase of the G&A expenses on both year-over-year and quarter-over-quarter basis were mainly attributable to fair value adjustment related to stock options.

Sales and marketing expenses were $8.8 million, a decrease of 31.3% from $12.9 million in the second quarter of 2014, primarily due to lower headcounts and controlled advertising expenses, and an increase of 8.7% from $8.1 million in the first quarter for 2015.

Research and development expenses were $2.7 million, an increase of 4.4% from $2.6 million in the second quarter of 2014 and a decrease of 4.6% from $2.8 million in the first quarter for 2015. The Company expects to continue to invest in its iTouGu mobile platform to achieve the Company’s long term strategic plan of providing retail investors one-stop solutions for their investment needs.

Income from operations was $0.6 million, compared with a loss of $14.1 million in the second quarter of 2014 and a loss of $3.5 million in the first quarter of 2015.

Gain from sale of cost method investment was $4.6 million for the second quarter of 2015.

Net income attributable to China Finance Online was $4.1 million, compared with a net loss of $6.4 million in the second quarter of 2014 and a net loss of $1.3 million in the first quarter of 2015. The increases of net income on both year-over-year and quarter-over-quarter basis were mainly attributable to the improved operating earnings and one-time gain on investment.

First Half 2015 Financial Results

Net revenues for the first half of 2015 was $36.8 million, compared with $43.8 million in the first half of 2014.  Gross profit for the first half of 2015 was $28.5 million, compared with $32.9 million in the first half of 2014.  Net income attributable to the Company for the first half of 2015 was $2.7 million, compared to a net loss of $8.4 million in the first half of 2014.

Source:  Benzinga.com