- Net revenues were $26.3 million compared with $24.4 million for the first nine months of 2012;
- Gross profit was $20.2 million compared with $18.1 million for the first nine months of 2012;
- Net loss attributable to China Finance Online was $10.4 million.
Third Quarter Highlights: Net revenues for the third quarter of 2013 were $13.2 million compared with $7.2 million for the third quarter of 2012, and up from $7.6 million for the second quarter of 2013.
The Company has re-categorized the components of its net revenues to better reflect the evolving nature of its businesses since the second quarter of 2013. The Company’s net revenues have been re-categorized under: (a) revenues from financial information and advisory business, which include subscription fees from individual customers and institutional customers; (b) revenues from financial services, which include brokerage-related revenues and our recently launched precious metal trading service; and (c) advertising revenues. During the third quarter of 2013, revenues from financial information and advisory business, revenues from financial services and advertising revenues each contributed 21%, 68% and 9% of the total revenues, respectively, compared with 66%, 10% and 24% for the third quarter in 2012.
Revenues from the financial information and advisory business decreased 40.6% year-over-year to $2.8 million, but up from $2.5 million in the second quarter of 2013. Revenues from financial services were $8.9 million compared with $0.7 million one year ago, and up from $3.3 million in the second quarter of 2013. Revenues from advertising decreased 31.0% year-over-year to $1.2 million from $1.7 million in the third quarter of 2012 and $1.7 million in the second quarter of 2013.
Gross profit was $11.4 million compared with $5.5 million for the third quarter in 2012, and $5.2 million in the second quarter of 2013. Gross margin for the third quarter of 2013 was 86.4% compared with 75.5% for the third quarter of 2012, and up from 67.9% in the second quarter of 2013.
2013 First Nine Months Results: Total net revenues for the first nine months ended September 30, 2013 were $26.3 million compared with $24.4 million in the first nine months last year. Gross profit for the first nine months of 2013 was $20.2 million compared with $18.1 million in the same period last year. Gross margin was 76.8% for the first nine months of 2013. Net loss attributable to the Company for the first nine months of 2013 was $10.4 million.
“After three years of consolidation, we are starting to turn things around amid a challenging market environment. Our revenues grew for three consecutive quarters on a sequential basis. During the strategic transition, we improved our business fundamentals and established new brokerage service with the growing precious metal trading. We also laid the foundation for a new wealth management service like Yinglibao. In addition, we also achieved progress in consolidating and integrating with complementary industry resources,” commented Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online.
“In 2014, we intend to enhance our core competitiveness through professional services and re-establish our vision for growth around ‘Let’s make investment easier’ for our clients and users. By leveraging our industry-leading internet capabilities, we are creating an online investment platform that is intuitive and easy-to-operate for our massive user base. We are also introducing diverse and high quality investment products to serve our growing customers and users of our flagship web portals. We remain confident in the long-term prospect of becoming a one-stop financial products and service provider in China,” Mr. Zhao concluded.
Source: Seeking Alpha