Chinese mobile internet firm, Cheetah Mobile, has announced consolidated financial results for the second quarter 2016. Total revenues rose 18% to $157.5m exceeding analyst expectations. Much of the growth was being driven by new app products as well as advertising formats and the firm’s direct sales programme.
Cheetah Mobile announces quarter results
Overall, mobile revenues grew 36.7% to $116.2m accounting for 73.8% of total revenues and 77.9% of online marketing revenue. That’s quite a noticeable increase from the 66.7% it presented last year.
Cheetah says that the growth in mobile revenue is pushed along by its growing mobile user base, but also higher advertiser demand and third-party ad platforms. Having improved its monetization features for light games also helped push in-game ad revenues.
Cheetah’s mobile monthly active user (MAU) base reached 623m in June 2016 with mobile MAUs from overseas markets making up for 79.4% of total mobile MAUs.
The company acquired mobile news service, News Republic, earlier this year, which ranked third in App Annie’s July index. Its Live.me live streaming app ranked in the top five social apps in the US.
Mr. Sheng Fu, Cheetah Mobile’s Chief Executive Officer, said in a statement:
“We are pleased that the initiatives we have implemented to rejuvenate sustainable growth for our company are starting to bear fruit. In the second quarter of 2016, we achieved better-than-expected total revenue growth. We expect revenues to resume its sequential growth trends in the second half of 2016, primarily driven by steady and sustained revenue growth generated by our existing utility apps.”
However, he noted that the business’s challenges shouldn’t be downplayed . Cheetah is facing some hurdles in transforming itself from a utility app mobile business to a more content-driven mobile form. Fu adds:
“Our initial success proves that we are on the right track and is progressing according to plans. Going forward, we will continue to leverage our over 600 million mobile MAUs to support our content strategy, deliver more personalized and relevant content to our users, and build Cheetah into one of the world’s leading mobile Internet companies.”