Sina Corp., operator of a leading Chinese Internet portal, said Wednesday its first-quarter profit fell 31 percent as advertising revenue declined due to a soft economy, according to AP. The Shanghai-based company said it earned $9.75 million, or 17 cents per share, compared with $14.1 million, or 23 cents a share, in the same quarter a year earlier. On an adjusted basis, the company said it earned 23 cents per share in the latest quarter. Revenue was up 3.4 percent to $73.8 million from $71.3 million. Analysts polled by Thomson Reuters were expecting, on average, a profit of 22 cents per share on revenue of $75.4 million. In the quarter, advertising revenue fell 10 percent to $43.2 million from last year. Nearly all of its ad revenue is from China. «The uncertainty in the Chinese economy at the beginning of the year had a severe impact on our online advertising business,» CEO Charles Chao said in a statement. «Although market visibility is still relatively low, we have seen improved confidence and sentiment among our advertisers.» Looking ahead, Sina said it expects to report revenue of $85 million to $89 million in the second quarter. That was below the $90.7 million analysts are forecasting. Advertising revenue is expected between $55 million and $58 million. The company also said its acquisition of Focus Media Holding Ltd. should close by the end of the third quarter, pending regulatory approvals. Shares of Sina were down 44 cents to $32.93 in U.S. trading on Tuesday, and fell another $1.43, or 4.3 percent, to $31.50 after hours when the earnings were released.
