Saturday, April 21, 2012

CFO revenues drop, records loss


News this week: NASDAQ-listed China Finance Online (CFO), a Chinese online financial information provider, has released both its 2011’s full year and fourth quarter results. For the year ended 31st December, CFO recorded revenues of US$53 million, a decrease of 11% from US$59.7 million recorded in 2010. Net loss attributable to shareholders in 2011 was US$19 million, compared to a profit of US$2 million in the previous year.

For the quarter ended 31st December, revenues were US$11 million, a year-on-year 27% decrease compared to US$15 million in the fourth quarter of 2010. Net loss attributable to shareholders in the quarter was US$15 million, while to a profit of US$89,000 recorded in the same period of 2010.


Revenues were generated from subscription fees from individual customers, subscription fees from institutional customers, advertising revenues and revenues from brokerage-related services. According to the company, in the fourth quarter, revenues from subscription fees from individual customers decreased 39% year-on-year, reflecting on the decreased in demand for financial information products in China. The company had approximately 94,000 active paid subscribers at the end of 2011.

In the result announcement, CFO also announced the implement of a strategic transition of its core business from providing premium subscription services to individual investors, to developing fee-based securities investment advisory services with wealth management services.
 
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