It’s over six months since the merger between China’s top two video-streaming sites was approved by shareholders, so the newest financial report for Q4 and full-year 2012 is the first one ever from the merged entity that has the rather awkward name Youku Tudou (NYSE:YOKU). The financials reveal narrowing losses for the company, which retains its two separately-branded video sites.
Q4 revenues were US$102.1 million, up 30 percent from the final quarter of 2011. But it all amounted to a net loss of $18.2 million for the final three months of last year – though that was at least down 43 percent from 2011 Q4. Chairman and CEO Victor Koo looked on the bright side, highlighting that the losses had “narrowed materially despite sales disruption brought on by the reorganization of our sales team after the merger.” He added that the company is “optimistic that the second half of 2013 will see more revenue growth momentum and cost synergies” as the Youku and Tudou sites look to cut down on overlap, especially on things like pricey licensed video content.
Before then, Youku Tudou is aiming at “between RMB 480 million and RMB 520 million” ($76.5 million to $82.8 million) in revenues for 2013 Q1.
Focusing on the sites and their content, Dele Liu, Youku Tudou’s president, hailed a growing mobile user-base as well as “ongoing growth in traffic” in general.
The merged company, across its two sites, sees as many as 310 million unique viewers each week who generate 1.6 billion hours of video each month. Comscore reckons that Chinese netizens watched a total of 4.1 billion hours of videos, TV shows, and movies in just one month last summer.
Youku and Tudou are up against a number of strong rivals from major Chinese web companies, such as Baidu’s iQiyi, Tencent Video, and SohuTV.