NASDAQ-listed China Finance Online (JRJC) has reported Q3 net revenues up 321% year-on-year and an increase in its net income of 241%. At the same time, the Company raised its projected net revenues for 2008 to between $50 million and $60 million, compared to the previous guidance of $45 million to $51 million.
The company attributed its revenue performance to “strong growth in sales of subscription packages as a result of enhancement in telemarketing capabilities as well as favourable stock market conditions”. It says it “is in the process of setting up new call centers to hire 500 additional telemarketers by the middle of 2008 to further expand its telemarketing team from 260 telemarketers as of September 30, 2007 to 760 telemarketers”.
The company also noted that in September it acquired 85% of the equity of Daily Growth Investment Company Limited, a Hong Kong-based brokerage firm, for approximately $3 million. The deal allows the Company to purchase the remaining 15% within the next 5 years. The transaction is expected to close by the middle of December. The company says “our goal in the long run is to capitalize on our website users’ growing interest in investing in Hong Kong-listed securities by providing a diversified portfolio of brokerage and informational services, thereby increasing the monetization rate of our website user base and enhancing our shareholder value”. Source: China Finance Online Announcement
BIIA Newsletter January 2008 Issue