Youku Tudou (YOKU +9.9%) opened lower, but is now up strongly in response to its Q3 report. Though EPS missed estimates, revenue was ahead of forecasts even if one backs out $3M provided by Tudou following the Aug. 23 merger closing. For Q4, the company is forecasting revenue of RMB610M-RMB630M ($97.7M-$101.8M); between them, Youku and Tudou reported revenue of $75.6M in Q4 2012. Q3 content costs were $29M (36% of revenue), and bandwidth costs $21.7M (27%) .
Youku Tudou (YOKU) predicts its content costs, long an investor concern, will decline as a % of revenue next year, as the Chinese online video market's content rates rationalize following last year's surge, and the company's merger gives it more purchasing power. Content costs made up 37% of Youku's Q2 revenue, up from 25% in the year-ago period. (previous)
European tech and telecom stocks carrying heavy debt loads are jumping today on optimism regarding the ECB's latest efforts to prop up Europe's bond markets. NOK +6.1%. ALU +4.5%. TI +7.8%. TEF +3.6%. Many Asian tech names are also posting solid gains, after the continent's stock markets rallied overnight in the wake of a new Chinese stimulus plan. YOKU +4.8%. SPRD +4.7%. SNE +3.6%.
Youku (YOKU -0.1%) and Tudou (TUDO) shareholders approve Youku's all-stock acquisition of Tudou in a deal that combines China's two biggest video Web sites and creates a company with over 300M weekly users. The transaction will increase Youku's lead over rivals Baidu (BIDU) and Tencent, and should generate savings of up to $60M/year.
Chinese Internet stocks are rallying, as pleasing earnings reports from Sina and messaging/gaming giant Tencent (TCEHY.PK) more than offset a miss from NetEase. BIDU +2.5%. SOHU +5.5%. GAME +4.9%. YOKU +5.9%. TUDO +5.5%. CYOU +2.1%. Tencent, which received a favorable WSJwrite-up ahead of earnings, rose 6.4% in Hong Kong after reporting revenue of $1.65B (+56% Y/Y) and net income of $487M.
Chinese Internet stocks surge in response to pleasing Q2 reports (I, II, III) from Youku (YOKU +7.6%), Sohu (SOHU +17%), and Changyou (CYOU +16.6%). BIDU +4.3%. SINA +9.7%. RENN +11.4%. PWRD +6.7%. TUDO +8%. Baidu's gains are coming in spite of the company's disclosure that 3 employees were arrested for taking bribes to delete message board posts.
Tudou (TUDO), which is set to merge with fellow Chinese video site Youku (YOKU), has reported Q2 revenue of $27.1M (+47.4% Y/Y) and EPS of -$0.80; the results miss consensus by $6.3M and $0.41. Nonetheless, Youku is up 4.8% - the Street seems pleased with its Q2 EPS beat and guidance for Q3 revenue growth of 70%-80% Y/Y, though the latter is below an 86.8% consensus. Youku had a short ratio of 6.4 as of July 13.
More on Baidu's Q2: 352K online ad customers, +9.7% Q/Q and +18.1% Y/Y. Revenue/customer was $2,440, +16.5% Q/Q and +34.8% Y/Y. Traffic acquisition costs were 8.3% of revenue, up from 7.8% in Q1 and 7.9% in year-ago period. SG&A expenses +55.6% Y/Y, R&D expenses +82.7%. BIDU +5.5% AH. Up in sympathy: SINA +2.8%. SOHU +2.5%. YOKU +1.7%. (PR)
Youku Tudou Inc is an Internet television company in china. Its internet television platform enables consumers to search, view and share high-quality video content quickly and easily across multiple devices.