The share price of Sina Corp rose today (February 25th) following the release of the company's latest financial results.
It revealed it made a net profit of $44.5 million (£26.7 million) in the October-to-December period, which was up from $2.4 million a year ago.
Sina Corp, which owns the social networking site Weibo, stated that advertising revenues at the site rose to $56 million during the fourth quarter. This was a 163 per cent increase from a year earlier.
"The strong performance of Weibo's advertising and value-added services in the fourth quarter allowed us to end 2013 with strong top line and bottom line growth," said Charles Chao, chief executive of Sina.
However, figures indicate the number of users on Weibo is dropping, so the future may have a different outlook for the company. Data revealed by the China Internet Network Information Center in its annual report showed that almost 28 million people abandoned Weibo last year.
Mr Chao stated that the firm "will continue to focus on growing Weibo's user base and user engagement" in the coming year.
Weibo is the largest social networking site in China and has become increasingly popular among advertisers in the last 12 months. The site allows users to post short messages, similar to how Twitter works in the western world. Advertisers are increasingly turning to the internet to reach the growing middle classes in the Asian nation.
It is also being reported that an initial public offering could be launched by Weibo in the coming year, which would raise hundreds of millions of dollars for Sina if it was to be pushed through.
Sina's latest results showed that its income from operations for the fourth quarter of 2013 was $27.4 million, which was compared to $5.6 million for the same period last year.
Stocks in the firm rose on the back of the news, climbing by more than four per cent on the back of the release of the new financial data.
Learn about the Asian markets and CFD trading at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.