Sina.com (ticker: SINA) CFO and Co-COO Charles Chao and Co-COO Hurst Lin presented at the Goldman Sachs Internet Conference in Las Vegas last week. Here are key points from the presentation:
General Company Description
- Online media.
- Online advertising.
- Internet search.
- E-commerce, online games, and casual games.
Detailed Company Description
- Sina.com - portal business - consumers.
- Sina Mobile.
- Sina.net - search business - mom and pop businesses.
- Sina Online - developing casual games, entertainment.
- Investments - MMORPG (online games) with NC Soft, and 1Pai (online auction) with Yahoo! (ticker: YHOO).
- User demographic - higher income relative to competitors.
- #1 traffic site in China.
March 2005 - China Statistics
- 349 million mobile subs.
- 99 million Internet users.
- Internet penetration less than 10% of population.
- Strong broadband growth - new housing complexes.
- Real estate, finance, job search.
- Co-branded channel sponsorship with China HR - job leads.
Types of Mobile Value-Added Services
- Content subscriptions.
- Entertainment downloads (ring tones, pictures).
- Dating and community services.
- Working on search product for a year.
- Unique features - "i ask" - knowledge base - can ask full questions.
- Answers provided by users - answers cataloged.
- Have 120 people working on search.
- Focusing on Chinese language and not on other languages or international markets.
- Outsourced search until recently.
- Challenge: Convincing users to utilize Sina search engine as opposed to leaving and using Google, Baidu, Yahoo etc.
- Sina-NCSoft JV - 3-D game - Lineage 2 - 93,000 daily average concurrent users in March.
- Casual game portal - 580,000 active users - 27 games offered - will continue to add games - building casual game community - different demographic than online games.
Online Auction Business
- 1Pai (with Yahoo!)
- Strongest in Northern China.
- Focusing on specific regions - because shipping continues to be an issue in certain areas.
- Don't disclose metrics.
- Competition fierce.
- No plans to charge fees - Taobao doesn't either.
Brand Advertising Trends
- Autos, real estate, mobile phone handsets - sectors not growing as quickly as before.
- They were major drivers of ad growth over last 18 months - ad growth
slowed of late.
- Q2 auto ads increasing because of major auto show
- Sina sees auto ads coming back.
- Sina doesn't see major recovery in
real estate and other segments this year.
New Advertising Growth Segments
- More ad revenue from Coke and
- Expect more ad revenue from credit card, finance and insurance companies.
- Required to follow Sarbanes Oxley.
- New partnership with ChinaHR.
- ChinaHR pays SINA a fee on annual basis.
- Large cash balance but in no hurry to make acquisitions.
- China Mobile purging inactive WAP accounts. Sina has little relative WAP revenue - only about 5% of wireless revenue.
- Has Shanda equity acquisition change operating plans? No.
- Will Shanda get a board seat? No plan as of now.
Comment: You can access an audio link to the presentation here.