Cheetah Mobile Q3 Profit Drops, Despite Surge In Revenues - Quick Facts

(RTTNews) - Mobile Internet company Cheetah Mobile Inc. (CMCM) Monday reported lower earnings for the third quarter, despite a substantial growth in revenues, which was offset by a sharp rise in total operating expenses. The company's revenues were boosted as a result of higher user traffic and a strong demand for advertising services on both PC and mobile platforms. The firm said it also experienced a significant ramp-up in its mobile advertising business in the overseas market. Net income attributable to the company was down at RMB 3.7 million, compared to RMB 5.5 million in the prior year period. Earnings per ADS decreased to RMB 0.03 from RMB 0.05 last year. Excluding certain items, earnings per ADS totaled RMB 0.43. Quarterly revenues surged 158.1 percent to RMB 478.7 million from RMB 185.5 million last year. By platform, revenues generated from mobile business climbed to RMB 113 million from RMB 15.5 million a year ago. This increase was primarily due to the increased acceptance of the company's mobile marketing services and the growth of its mobile gaming services. Total operating expenses stood higher at RMB 373.18 million, compared with RMB 139.79 million last year. Looking ahead, for the fourth quarter, the group expects its total estimated revenues to be between RMB 560 million and RMB 570 million.