Sky-mobi Posts Loss In Q2 - Quick Facts

(RTTNews) - Sky-mobi Limited (MOBI), a leading mobile application platform and game publisher in China, reported a second quarter net loss to owners of RMB 5.3 million compared to net profit of RMB 63.7 million in the prior year period. Loss per common share was RMB 0.02 compared to profit of RMB 0.26. Loss per ADS was RMB 0.18, for the quarter.

Non-IFRS net loss was RMB 2.7 million, and Non-IFRS loss per common share was RMB 0.01, for the quarter. Non-IFRS loss per ADS was RMB 0.06.

Total revenue was RMB 164.1 million compared to RMB 170.2 million in the prior year period. The company said thee decrease was mainly due to the various measures and policies tightening payment system security implemented by the big three mobile carriers in China since mid-May, which have discouraged and disabled mobile subscribers from purchasing certain mobile content from mobile application providers, including Sky-mobi. Revenue from smartphone business increased by 17.0% to RMB 154.9 million.

The company expects its total revenue for the third quarter of 2015 to be significantly lower than that of the second quarter.

Fischer Xiaodong Chen, CFO, said, "Due to the tightening measures implemented by the big three mobile carriers in China, including but not limited to the suspension of certain of their billing and payment channels, our mobile subscribers experienced increased difficulty in purchasing our mobile content, negatively impacting our total revenue. In an effort to mitigate this negative impact, we have initiated a series of cost-cutting measures, including streamlining our operations and employee base and divesting certain businesses that do not offer strong future growth potential such as Hangzhou Mopin Technology Co., Ltd., one of our subsidiaries."