Shares of China-based internet advertisement company ChinaNet (CNET) jumped after reporting fourth-quarter revenue that increased over 64% from the year-ago period.
REVENUE JUMPS: Q4 revenue spiked 64.1% to $15.3M from $9.4M in the year-ago quarter, ChinaNet-Online said this morning. Operating expenses for Q4 were down to 40.7% from 42.9% last year. Most notably, revenues from search engine marketing and data service increased by 121.1% to $13.1M from $5.9M in the corresponding period of 2016. Net loss attributable to ChinaNet Online Holdings was $6.2M in Q4, compared to $2.3M in the corresponding period of 2016. Handong Cheng, Chairman, President, and CEO of CNET, stated that “2017 has been a transitional year for us. Realizing that our small-to-medium enterprise or SME customers are struggling as the Chinese economy slows down, we have actively migrated our business focus towards servicing larger customers and providing search-engine advertising solutions. As a result, we achieved 64.1% of year-over-year revenue growth in the fourth quarter of 2017 and 34.2% in full-year 2017.”
APPLYING BLOCK CHAIN TECHNOLOGY: CEO Cheng also commented that “At the same time, we see tremendous opportunities in applying blockchain technology to helping SMEs to achieve better business results than ever before.”
PRICE ACTION: Shares of ChinaNet Online are up 45.3% to $3.59 per share in afternoon trading.