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Youku.com (NYSE:YOKU), a China based provider of Internet television service, priced its IPO on 7th December, 2010 above the expected range at $12.80 per ADS, and more than doubled in first trade giving a return of 161.3%.

Business Overview (from prospectus)

We are the leading Internet television company in China in terms of market share measured by total user time spent viewing online videos in China, according to iResearch Consulting Group, or iResearch, a third-party market research firm. Our Internet television platform enables consumers to search, view and share high-quality video content quickly and easily across multiple devices. We believe our continuous focus on offering a superior user experience has enabled us to become the largest Internet television company in China and elevated our Youku LOGO brand, which stands for “what’s best and what’s cool” in Chinese, to be the most recognized online video brand in China according to a 2010 survey conducted by an affiliate of the Chinese Academy of Sciences.

Offering: 15.8 million ADS at $12.80 per ADS. Net proceeds of approximately $25 million will be used for video content acquisition and approximately $50 million for business expansion.

Lead Underwriters: Goldman Sachs (Asia) L.L.C. (NYSE:GS)

Financial Highlights:

Net revenues increased from RMB99.8 million in the nine months ended September 30, 2009 to RMB234.6 million (US$35.1 million) in the nine months ended September 30, 2010...Cost of revenues increased from RMB157.7 million in the nine months ended September 30, 2009 to RMB248.7 million (US$37.2 million) in the nine months ended September 30, 2010...Operating expenses increased by 76.5% from RMB74.5 million in the nine months ended September 30, 2009 to RMB131.5 million (US$19.7 million) in the nine months ended September 30, 2010...Sales and marketing expenses increased by 96.8% from RMB46.5 million in the nine months ended September 30, 2009 to RMB91.5 million (US$13.7 million) in the nine months ended September 30, 2010...Net loss increased from RMB136.3 million in the nine months ended September 30, 2009 to RMB167.0 million (US$25.0 million) in the nine months ended September 30, 2010...

Competitors

The online video industry in China is rapidly evolving and highly competitive. Our primary competitors include companies that operate online video websites in China and traditional advertising media. We compete with these entities for both users and advertisers primarily on the basis of user base and demographics, quality and quantity of video content, brand name and user experience. We compete with other online video providers in China, such as Tudou.com, and large Chinese Internet portals that provide online video product, such as SINA (NASDAQ:SINA) and Sohu (NASDAQ:SOHU). We also compete with traditional advertising media, such as television, radio, newspapers and magazines, and major out-of-home media, such as billboards, for advertisers’ advertising budgets. Large enterprises currently spend a relatively small percentage of their advertising budgets on online advertising as compared to the percentage they spend on traditional advertising media, but we expect the percentage spent on online advertising to increase in the future.

Additional Resources:

Source: Youku.com IPO Rockets Out of the Gate