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Shrinking Revenues Drive Sina.com to Further Cut Workforce
Advertising acounts for 87 percent of the total of Sina.com's revenue, according to the financial report of the 2001 fiscal year released by the company on Wednesday.
Sina.com will further tap potential in ads and it has entered into negotiations with traditional enterprises, especially in the fields of finance and tourism, said Daniel Mao, the newly appointed chief executive.
Mr. Mao holds that the slack period for online advertising are nearing the end and he expects rebounding of ads revenue by various ways in cooperation with other companies in the second half of this year, to make ads revenue and that of non-ads to go at a fifty-fifty account.
87 percent income of Sina.com comes from advertising, 75 percent of those revenues from China's inland, 14 percent from North American and 7.4 percent from China's Taiwan and Hong Kong.
The Nasdaq-listed portal said it would axe 80 people from nowadays 530 to 450 before the end of next month, and the move will save a cost of US$700-800 thousand for one quarter.
As to when the portal can make its ends meet, Daniel Mao said that he had no specific prediction but it is hoped that this can be achieved from 2002 to 2004, as some analysts forcasted.
For the fiscal year ended June 30, Sina.com said net loss in revenue for the fiscal year totaled US$36.4 million, a loss of US$0.91 per share, or 28 percent less as against that for the fiscal year 2000.
By PD Online staff member Li Heng
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