Newly merged Chinese online video company, Youku Tudou Inc (ADR)(NYSE:YOKU)’s U.S. shares went up 1% on Friday, November 30. This happened right after the company announced late on the previous day that their Q3 revenue was way beyond Wall Street expectations.
Youku and Tudou merged on the August 23 of this year, when the deal was officially closed. They had said in a release that the companies were run separately through the end of the quarter. Both individual and combined sales were reported. As a stand-alone company, Youku went beyond Wall Street’s consensus forecasts. According to T.H. Capital analyst Tian X. Hou, those estimates have not been seen in Tudou’s financial performance as of yet.
Thomson Reuters revealed that Youku’s sales figures, without counting Tudou came to $76.9 million. Youku Tudou’s combined sales report showed a sales figure of $79.9 million. The consolidated company lost 11 cents per American depositary receipt, minus items. CEO Victor Koo said in a statement that it is a vital benchmark for the Youku stand-alone as it has managed to generate profits at the operational level in Q3.
Local research firm iResearch stated that the company is presently managing the top two online video websites in
as measured by weekly unique visitors. Their main competitors are Web portal
Tencent and with China
search leader Baidu.com, Inc. (NASDAQ:BIDU). The latter
purchased a controlling stake in November in video site iQiyi.
Overall figures computed by iResearch show that
China's online video revenue overall rose 37% in Q3, which is by
far the slowest growth rate in 2012, as the Q2 and Q1 revenue had gone up 54.5%
and 78.5% respectively. Analyst Hou is confident that Youku Tudou will face the
challenges head on and emerge at the top.