Sina on monetizing Internet search - implications for Baidu (SINA 2Q05 conf call quotes)

Includes: BIDU, SINA, SOHU
by: Ezra Marbach (ticker SINA) reported Q2 2005 earnings results yesterday. Here are key quotes attributed to Sina CEO Wang Yan, CFO and Co-COO Charles Chao and Co-COO Hurst Lin from management's earnings results conference call:

On Monetizing Search

....regarding the revenue on search going forward, in the short-term we don’t see -- we just see a modest rise quarter-on-quarter in connection with the rise in traffic. But we don’t see an explosive growth yet before again it has got to do with the fact that ecommerce based transactions in China haven’t really taken off yet and until that day comes, or until the payment solution in China is solved, I think it is going to be a little bit more difficult for a lot of these small medium sized businesses to buy keywords and be able to account the efficiency of their keyword purchases. So because of that we think that the monetization is still going to take a little bit of time. At least not growing at the rate that people are used to seeing in other countries as yet in China.

On New Government Regulations Relating to Online Games

....GAPP....has notified Sina....regarding the implementation of a game fatigue system....we do not see this game fatigue system to have any material impact on Sina’s overall business.

On the Future of SMS

....SMS still has a very large market in China…good opportunity for SPs....if they can find a good product and find a good channel to promote these products.

(Quotes are from the CCBN StreetEvents transcript.)

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