Chinese online-offline real estate services provider Leju Holdings reported a 13 per cent slump in advertising revenue in its full year results for 2015.
This follows a sharp dip in the company's advertising income of 15 per cent to $37.1 million during the fourth quarter.
Despite the drop advertising revenue, Leju, which provides offline services to complement its property marketplace online, recorded a revenue increase of 16 per cent year-on-year to $575.8 million for 2015 overall.
Revenue from e-commerce services increased by 29 per cent year-on-year to $420.6 million while listing services saw a 47 per cent hike in revenue year-on-year to $21.0 million
Meanwhile Non-GAAP income from operations decreased by 36 per cent year-on-year to $68.9 million.
"We faced a continuously changing market and competitive landscape in 2015," says chief executive officer Geoffrey He.
"Specifically, in the fourth quarter we experienced some unexpected changes to our e-commerce project pipeline. However, we remained focused on our strategy of providing media, marketing and e-commerce platforms and maintained our market leading position and profitability in 2015.
"We launched innovative products for various stages of the home purchasing and renovating process to achieve a better marketing impact and improve overall user experience," He says.
"In 2016 we plan to strengthen our leadership and continue to innovate to solidify the foundation for long term growth across all of our business lines."
In the fourth quarter total revenues were $173.4 million, an increase of 1 per cent from $171.8 million for the same quarter of 2014.
This was mainly driven by growth of revenues from e-commerce services and listing services, partially offset by a decrease in revenue from online advertising services.
He says the drop revenues from online advertising services can be attributed primarily due to a decrease in property developers' online advertising demand.
"Increased revenues from listing services was primarily due to growth in the number of paying agents," he says. "Net income was $12.8 million, a decrease of 44 per cent from $22.9 million for the same quarter of 2014."
Leju Holdings estimates its fiscal 2016 total revenues will be approximately $660 million to $690 million, which would represent an increase of approximately 15 to 20 per cent from $575.8 million in 2015.